Reply to Tips for saving for college? How much to do you put into your kids college savings acct?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]While it's not very DCUM-ish, we don't save for college. Our parents did not pay for our schooling, and we fully expect our kids will take on their own loans to pay for theirs. Grandparents do contribute to a 529 that will offset some of the difference in the very high cost of college today vs. what it cost 25 years ago, but it is more important to me that we save adequately for retirement so that our kids won't be saddled with caring for us then. If we had a windfall or new jobs that allowed us to max out retirement and also save for college--absolutely we'd start contributing to the 529s. But right now we don't have the resources to do both, and have decided (in part based on advise from a financial advisor) that retirement saving is more critical.[/quote]

Around DC area, it is common for parents to pay for college or at least help.  If you prefer to spend it on a big house, fancy cars and retirement, that's your choice but don't expect them to all go to college.  Its one thing if you cannot afford it, but its another if you make lifestyle choices and choose not to.  Today, you need a college degree to do most things.  Its not optional like it was for our grandparents or even some of our parents.  We choose to live in a small house and live way under our means so we can heavily save for college.  My husband's parents didn't pay for his and he struggled till he got it in his 30's. He missed out having a normal college experience.  Mine paid for mine.  I cannot imagine not paying for ours, even if it just means a state college and graduate school.  I'm not going to hope for financial aide and I don't want mine starting out life on their own in crazy debt.  [/quote]

PP, and it's not like we have fancy cars or a big house. We would certainly prioritize college saving over those things. We already have a small house and one paid off car, so there aren't a lot of corners we could cut to allow us to shift money into college savings. Our kids will qualify for substantial financial aid, and of course we expect to contribute the family portion from our earnings and assets while they're in school. We're just opting not to save for college instead of retirement. Unfortunately my grandparents did not make that choice, and it was pretty awful to watch the impact of that decision on my parents and their siblings in the final years when their resources ran out. We are actively choosing to avoid that path (and my parents made the same choice, based on that experience).[/quote]

I get it PP.  My parents didn’t make enough money to save much for our college education either (although I don’t think they have enough for retirement either and will both work until at least 70, but that’s another matter).  My sisters and I got by through a combination of scholarships/grants, loans, and student jobs. DH and I are fortunate in that we can save more than my folks did (hoping to save the equivalent of in-state tuition), but if our kids need to take out a small loan, it’s ok. I just want to make sure they understand the consequences and understand how much they’ll owe. We were pretty clueless at 17 and my youngest sister especially ended up with pretty significant debt. I finished paying mine off in my early 30s, she’s still paying hers in her mid-30s.[/quote]

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