Reply to Private School - has it been worth the money to you?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This is kind of a silly question.  Most parents choose to not drop 40k a year on private school when there is a good public school option.  There are benefits of going to private school, but for most those benefits aren't worth hundreds of thousands of dollars.  [/quote]

Many kids have grandparents paying (I'd say most of the alumni kids and many others) and there are tax reasons for doing this.  We have two kids in private and my husband and I earn $150,000 a year (there is absolutely no way we could drop $80,000 on tuition).  [/quote]

correct.[/quote]

Does having the grandparents pay for the legacy kids suggest the legacy kids aren't well off enough on their own to afford it, or that their parents were simply wealthy then and remain wealthy now?

[/quote]

I think it would vary between families, but I would bet that mine is fairly common.  We can afford a very nice life, but private school would be a big stretch ($250k hhi).  Not impossible, but not ideal.  We save a lot, and we will have enough for a nice retirement, and could likely swing college if necessary.  My parents were in a similar position when I was a child, but housing and school costs were lower.  They have since continued earning and saving  and had some inheritence and now have quite a nest egg that will be passed down at some point.  Paying for schools is a tax-advantaged way to pass it down.  We do not count on any inheritence, however, and would likely follow a similar trajectory where any inheritence would be an unnecessary windfall.  So, yes, they have more money now, but that is more because of stage of life than anything else.[/quote]

This is the same story for us. On some level we have chosen jobs with lower income/higher quality of life and could both earn more if that were necessary. Fortunately grandparents are in a financial position to pay and it is a good tax savings to do so.  The truth is, the gravy train will likely end with is, or at the very least with my kids.  [/quote]

How is it a tax savings for grandparents to pay for private school?[/quote]

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