Reply to Would our DD feel out of place at private school if our HHI is $250,000

Forum Index » Private & Independent Schools

Reply to "Would our DD feel out of place at private school if our HHI is $250,000"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Taking on a massive mortgage AND 80k for private is counterproductive if it leaves you struggling in the end. Buying into a good, but expensive school zone makes sense if you're actually going to go public. My point is that nobody should be struggling to spend a week at the beach on that income.

Thank you to the genius PP for pointing out that even those earning 300k pay taxes. I didn't know that![/quote]

[quote=Anonymous]Taking on a massive mortgage AND 80k for private is counterproductive if it leaves you struggling in the end. Buying into a good, but expensive school zone makes sense if you're actually going to go public. My point is that nobody should be struggling to spend a week at the beach on that income.

Thank you to the genius PP for pointing out that even those earning 300k pay taxes. I didn't know that![/quote]

Your overall point about struggling to pay for private education may be sage. However, I'm not sure the beach vacation is the best test of struggling to find the funds, because in the order of expenses (needs --> wants) a vacation is low on the totem pole. For most people, the priority of things to pay for are going in an order something like this:

1. House and basic food 
2. Health care
3. Student loans (and other debt if it's there)
4. Car(s)
5. Retirement savings
6. Clothes and useful stuff
7. Emergency fund

.....
10. Oh, look extra money -- let's go to the beach.

If I can get to item 6 or so without looking too closely, I figure I've just hit the truly discretionary area of my budget. At that point, I have the choice to invest more, buy more, give more, go on bigger vacations, or pay for school tuition. It's not everyone's choice, but for some families it's worth nuking most of the remaining liquidity to find tuition money. That means there's not much vacation money. That makes you different from a very rich family who can put 20 items on this list and still find cash. But it doesn't mean you can't afford education. It just means you are willing to economize on items #1-7 a bit and not have too many competing uses for discretionary funds.

By contrast, if someone is failing to save for retirement or not meeting debt obligations, and they're also paying for large vacations or large school tuition, then there's a clear problem.
[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics