Reply to How much do you put into your kids' 529 (college fund) annually?

Forum Index » Money and Finances

Reply to "How much do you put into your kids' 529 (college fund) annually?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]We do $7200/year, plus generally a contribution from grandparents of $5000/year.  1 kid, 5 yo, have about $70,000 total saved in a variety of accounts.  I agree that the bubble likely will burst in the next 13 years, but have no idea what result will be.  Thats' why we're splitting up savings between 529 plans and traditional savings/investment vehicles - to avoid potential penalties if all the college savings aren't required for college.  [/quote]

I don't agree that this is a bubble. I'm a Gen X parent. When I went to college, most colleges had more capacity than they needed because they had built capacity to handle the Baby Boom. They then encountered the very small cohort of Gen X and had to scramble for students. There was a lot of competition for a small number of kids. The Millennials are an echo boom. They are the kids of  Baby Boom parents and there are a lot of them. There are actually more Millennials than Baby Boomers. They are more of them competing for the same spots.  
That is going to keep the price high.

We're also dealing with a switch to an information age.  There will be fewer and fewer jobs that can be done with less than a college education. I plan on my kids getting both a college degree and a graduate degree to be competitive in the job market.

I expect the rapid inflation of prices will slow down, because campuses will eventually have added all the programs and infrastructures they need, but I don't expect prices to collapse. [/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