Reply to If your HHI is between 200-300k, how much will you have saved for college

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]If we assume a 6% rate of return and an increase in costs of 5% per year like the calculators say, we will have $275k for our oldest and $350k for our youngest based on current balance and savings rate.

Neither of those amounts would come close to being able to full pay at a private school. We live in DC so no instate option and many of the really good state flagships are in the mid $50s to high $60s with room and board today…we’d be highly short of schools comparable to UVA.

The younger will have more because we upped our rate of savings when the youngest was 4 and the oldest was 9, so the youngest will have many more years to benefit from that (coinciding with the end of daycare which freed up $2k a month in our budget).  We currently save $1000/month/child. Prior to about a year and a half ago we saved $4k/year/child. [/quote]

Do you treat the accounts as separate? Although our oldest has more money in his accounts, we will ensure they both receive the same level of support.[/quote]

I think of them as separate because there are 5 years between our children. And while this is what I anticipate given historic returns, I can’t guarantee it, plus school will be cheaper for the older one given 5 years of 5% increases per year before the younger one gets to college. Probably to the tune of $12-20k more per year expensive 5 years later given historic increases, so the younger one needs more anyway to pay for the same thing…I certainly don’t have the money to “even it out” if say they both attend UVA at out of state rates, calculators predict it would cost $402k for the oldest, $489k for the youngest. So to be “even”, if I full paid, I’d wouldn’t be able to then turn around and give the oldest the $87k to make what I spent even. I think it would be even that I paid for a 4 year degree for each kid. [/quote]

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