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]Here's something for everyone to think about. Cost of attendance is rising at about 4 to 5% per year. If you plug in how much a college costs now, and calculate how much it will cost by the time your kid gets to college, you will be horrified.

For example - a school that costs $33,000 a year to attend today costs $132,000 for four years. If it increases 5% per year it will cost $191,000 for four years starting in 2025 and $232,000 for four years starting in 2029. Ouch!

Better hope your 529 investments are doing better than 5% a year or you are only just staying even with the rising costs.[/quote]

Yes. It's crazy.  I graduated from college in 2001 and the cost of a 4-year education (tuition, room and board, etc.) has DOUBLED since then.  Meanwhile the U.S. Real Median Household Income has gone from something like 60k to 63k.

Families are getting squeezed all around- people are living longer and many companies have done away with pensions, so you need to save more for retirement.  Healthcare costs keep going up.  And once someone is speniding their 20s/30s paying back student loans, it perpetuates a cycle of not being able to save enough for their kids.

I don't know what the answer is, but the current trajectory is not sustainable.  Something will have to give.[/quote]

We do what our parents did.  Live under our means and save.  Colleges were still a lot of money back then.  My parents still paid $25-30K or more a year.  Our kids know they will go to the state college as that is what we can comfortable provide.[/quote]

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