Reply to Do you make $400,000 a year but feel broke?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I guess it depends on your definition of burden.  Let's say for the sake of argument that a relatively thrifty family on that HHI saves $120k* per year after tax.  If they have two kids, you're now asking them to put half of their total annual savings towards tuition.  I may be more fiscally conservative than others, but I'd be very cautious about allocating resources that way unless and until there was some long-term wealth behind it from multiple years of saving.

* You can quibble with the $120k amount, but I'd guess that's well over what most families in this income category save given it's probably about $250k of after-tax income. [/quote]

So ridiculous. You are free to allocate your resources however you choose. Just don't whine about it when you make more money in 2 months than most people make all year. It is really gross. [/quote]
What part do you find ridiculous?  That I would be cautious about allocating half of annual savings toward tuition for two kids?

Just to illustrate this further, let's say a family is considering putting two kids into private school at a cost of $60k per year.  For a family on $1M HHI, that's an insignificant cost... almost trivial.  They can afford it and the school should expect significant donations on top of it.  For a family on $65k, the school should cover 90+% of tuition with financial aid.  For the family on $400k, I think a small amount of aid - let's say $5-10k - is very appropriate.  Otherwise you have a system where it's only rational to attend these schools if you are at one extreme or the other.  As someone who values a private school education, I think that schools with sufficient endowments should endeavor to make attending something a rational person would consider.[/quote]

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