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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I realized after discussing with our circle of friends that not a single one of them has put away money for their kids' college funds.  They decided to put their money elsewhere - mostly into their house, but also more comfortable spending money on things like lessons and activities and camps for their kids, and on family vacations and entertainment.

We are on track to saving enough to fund their entire college education.  We would not qualify for need-based financial assistance.  College is dizzyingly expensive.  Are we making a mistake by putting money into their college funds?[/quote]

Unless they make less than 150K, they won't likely won't qualify for any need-based financial assistance either.  They will just be scrambling to figure out how to fund $40-50K+ per year once kids are college aged.

You are not making a mistake---if your kids attend a school with merit award, you can withdraw from the 529 to match the award without any penalty (if you don't just want to leave the $$$ in the 529 for grad school, other kids, grandkids, etc).  You will not be figuring out how to cash flow $50K+ for 4 years and that will be a good thing[/quote]

$50k? Top privates run $80k or over NOW. How old are your kids, OP? If you can fully fund your retirement (up to limit with match), by all means keep contributing. Just monitor like any other investment account. Such a gift for your kids.  We were like your friends, and made a stupid mistake by not starting 529s earlier. [/quote]

I was suggesting 50K as a mid point---instate public schools.  I know most privates are 80K+ already.  Living that with my own kid currently. Thankfully we have a fully funded 529 for them[/quote]

$50K is a very generous budget (at current prices). Nobody needs to spend $80K per year for college. Sure, spend it if you want to but I am 100% certain that anybody paying that bill could have gone to a lower cost college if they were willing to be a smarter shopper. We pay $26k/year for one kid at an in-state school. His other options were as much as $45k for an OOS public with merit. Current senior has several offers at about $30K, a couple in the $40-$50k range, and an in-state public for $20k.  [/quote]

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