Reply to I’m really surprised how many people don’t save for college

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I don’t understand saving for college.

We just pay for it out of our income.

We only make $250 but $60K / year is not that big of a deal once your kid did private school for 12 years. It’s just part of the budget.[/quote]
Yes, this works, too, if you don't have substantial expenses allocated elsewhere. You are likely "living within your means."[/quote]

This is us - planning on cashflowing on a $250k income. But we are paying $30k a year for private now, which makes it easy to avoid too much lifestyle creep! It’s forced us to make choices along the way that will help us get through the college years (one car, bought a house that cost 30% of what we “could” afford).    Private school was undoubtedly a lousy financial decision (although a wonderful educational one), but at least college is going to be less of a shock to our pocketbook…[/quote]

NP I get that your budget can accommodate it, but [b]what if one of you loses your job and the income isn’t there[/b]? We make slightly more and could have done the same I suppose but I never wanted to put the college education at risk, or be in a position to have to take loans if for whatever reason the income wasn’t there, so instead we planned and saved.[/quote]

Then we’ll almost certainly qualify for FA. I’ve run a bunch of NPCs and our EFC is about $50-60k at most private schools. If I halve our income, EFC is $20-30k.  Assuming the laid-off parent couldn’t get back to work immediately, we’d probably cash flow half of that and borrow the other half. It would be OK. [/quote]

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