Reply to Why do people think you have to spend so much on your kids?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]The cost of community college varies by where you live. If you live in Virginia, the current cost is a bit over $3700 a year. So maybe with the max allowed loans and year round jobs, your kids could get through 2 years of community college. Probably not doable in Maryland. Current cost is $7300 a year. What you will have saved plus their earnings is unlikely to be enough to go straIght through for the last 2 years. even if they live at home.

I hope you're a troll. If not, I feel sorry for your kids.

[/quote]

OP here we are in MD, I don’t think the savings will be an issue and here’s why. We started saving as soon as we made the decision to have our first kid, 2 years before they were born so there will be 20 years of savings and the same for our second kid. 2000/yr compounding at 7% per year is $82,000 after 20 years in current year dollars. We will also be increasing the savings rate starting next year to 2400/yr to account for recent inflation. The current cost of college per year for in state students at UMD is around 25k give or take including room and board. For community college it’s around 7500/yr where we live and they will be living at home during that time with all expenses covered unless they insist on moving out (on their own dime of course!), so this only comes out to 65k for 4 years. Now of course, the cost of college might increase faster than inflation but this is out of our control. Investments could do poorly as well, but again that’s out of our control. If there’s a gap with the savings, kids can take out loans like I did or get a side job or good paying internship. Summer internships at good companies are paying $50+ an hour these days.

I went to school right when the financial crisis was happening and a lot of the money was invested in stocks so bad timing on my parents part, but that’s how it goes sometimes. I took out loans that were around 28k by the time I graduated. I paid everything off within 2 years because I made sure to go in to a lucrative field (tech) with a salary that made the 4 year college education worth it.

So I really don’t think the savings will be an issue. I also played rec soccer as a kid, was in my schools band, scouts, etc and didn’t feel like my parents limited my childhood enrichment at all. I’m on good terms with my parents and they were able to retire at an early age which I’m happy for.[/quote]

What a nightmare you are setting up. You don’t think your 20 year old is going to resent your being such a tightwad that you control every decision on where they live and where they go to college when you have plenty of money to give them choices? Good luck with that.

Of course this assumes that they will even get into UMD, which they might not since you are determined to raise lackluster kids with no extras.[/quote]

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