Anonymous
Post 12/03/2024 22:49     Subject: Is it responsible to spend 90K/yr in education?
Anonymous wrote:My oldest DS was accepted to both Northwestern University (90K/yr), and University of Virginia (40K/year) in 2020, and he decided to attend Northwestern University. The total cost of attendance is around 360K. His cousin attended UVA in 2020 (he was also accepted by Northwestern), and both he and DS received the same job at the same company. They both studied the same major, but his cousin has 200K in savings for not going to Northwestern. He will take my DS a long time to save up to 200K in post-tax money.

My younger DS is a HS senior, and I explained to him that if he should go to UVA, if accepted, because it would set him up much better financially for the future. I will invest that 200K towards his retirement. Not sure if I am doing the right thing here. Thoughts?


We are spending more than $90k per year for our 3rd child's education. Child one got a scholarship out of state, child two stayed in state. Since the money is not an issue for us, we let them each choose where they wanted to attend.

If money is an issue for your family, it would be irresponsible to spend $90k per year unnecessarily
Anonymous
Post 12/03/2024 22:42     Subject: Is it responsible to spend 90K/yr in education?
Anonymous wrote:I think it’s silly, no matter how much money you have.
If kid is brilliant, they will get merit scholarship.
If they are not, then college not for them.
Just my opinion.


Yikes bad advice. Survival in America is pretty much formulaic whereas a degree just about guarantees a basic standard of living, loans or no loans.

Anonymous
Post 12/03/2024 22:34     Subject: Is it responsible to spend 90K/yr in education?
Anonymous wrote:It’s the same reason why I paid for DC’s private school. It’s not for prestige, but so that they have good teachers who inspire then and are surrounded by peers who want to do something with their lives, not just get a C and go back to playing video games.

I don’t think it’s justifiable to pay $100k a year if you can get the same level of experience elsewhere cheaper.

But I also don’t want DC to be in Alabama University for free where football and bleached blonds with outfits are the main focus.


+1 not looking for grandkids on the way before the winter break
Anonymous
Post 12/03/2024 22:27     Subject: Is it responsible to spend 90K/yr in education?
Anonymous wrote:My oldest DS was accepted to both Northwestern University (90K/yr), and University of Virginia (40K/year) in 2020, and he decided to attend Northwestern University. The total cost of attendance is around 360K. His cousin attended UVA in 2020 (he was also accepted by Northwestern), and both he and DS received the same job at the same company. They both studied the same major, but his cousin has 200K in savings for not going to Northwestern. He will take my DS a long time to save up to 200K in post-tax money.

My younger DS is a HS senior, and I explained to him that if he should go to UVA, if accepted, because it would set him up much better financially for the future. I will invest that 200K towards his retirement. Not sure if I am doing the right thing here. Thoughts?


You are correct. UVA is a great school.
Anonymous
Post 12/03/2024 21:52     Subject: Re:Is it responsible to spend 90K/yr in education?
Anonymous wrote:UVA is one of the best state schools in the country so it’s an easy answer.


Unless your kid is better off a small college. Then a huge state school is a waste of money.
Anonymous
Post 12/03/2024 21:51     Subject: Is it responsible to spend 90K/yr in education?
Anonymous wrote:I think it’s silly, no matter how much money you have.
If kid is brilliant, they will get merit scholarship.
If they are not, then college not for them.
Just my opinion.


That is an unusual take.
Anonymous
Post 12/03/2024 21:49     Subject: Is it responsible to spend 90K/yr in education?
Anonymous wrote:I think it’s silly, no matter how much money you have.
If kid is brilliant, they will get merit scholarship.
If they are not, then college not for them.
Just my opinion.


A lot of schools don’t offer merit.

Our kids made grades high enough to get in, but since everyone that attends has similarly high stats there is no merit. But we can afford it. And are comfortable paying it - for both kids.

But that’s why we work, When We could likely retire. Work is easy. Money is good. Of course, We can save the money and leave an extra $500k (in todays money) to our grandkids when we die; but we decided to spend it on their parents’ education (and still leave them millions). This is Our choice and what works for us.

So Just because it’s silly for your bank account, it’s just another bill for ours.

Just my opinion!
Anonymous
Post 12/03/2024 21:36     Subject: Re:Is it responsible to spend 90K/yr in education?
To spend that much money on college, I would require that (1) I reached financial independence/no longer needed to work and (2) spending that much would in no way whatsoever change the probability of my money running out before age 95.
Anonymous
Post 12/03/2024 19:00     Subject: Is it responsible to spend 90K/yr in education?
Anonymous wrote:
Anonymous wrote:It is incredible how expensive college is in this country. Even if you are a multi millionaire and money is not an issue, we should not normalize $100k/year for a college education.


We will not -- it will be 125k in 10 years for top schools.


How do you propose we "not normalize " it? As long as people are willing to pay prices will keep increasing.

And most people who have saved enough/can easily afford it will continue to pay for their kids to attend schools that are right for them, no matter what the costs. Right now 50-60% of kids at most t40-50 schools are full pay. So there are plenty willing to pay.

However I do agree that if you cannot easily afford it it is not smart to spend that much.
Anonymous
Post 12/03/2024 17:53     Subject: Is it responsible to spend 90K/yr in education?
Anonymous wrote:It is incredible how expensive college is in this country. Even if you are a multi millionaire and money is not an issue, we should not normalize $100k/year for a college education.


We will not -- it will be 125k in 10 years for top schools.
Anonymous
Post 12/03/2024 17:46     Subject: Is it responsible to spend 90K/yr in education?
my dad tried to make a similar deal with me, but then he had a catastrophic accident and all the money was gone. so would make sure that that 200,000 actually gets invested in his name
Anonymous
Post 12/03/2024 17:13     Subject: Re:Is it responsible to spend 90K/yr in education?
Off subject, but how do you plan to save that 200k towards his retirement? Is he planning to be self employed after graduation? Is the 200k in an unrestricted account or a 529?

The ability to roll unused 529 money into an IRA is capped at 32K (approximately) and subject to the annual IRA income limits (up to the lesser of annual income or 7k in 2024).

Nice problem to have. If you have the money, no it’s not irresponsible to spend it on private schools.
Anonymous
Post 12/03/2024 16:39     Subject: Is it responsible to spend 90K/yr in education?
It’s high time for salaries at colleges to be cut. Too many overpaid old men on tenure.
Anonymous
Post 12/03/2024 15:27     Subject: Is it responsible to spend 90K/yr in education?
Anonymous wrote:
Anonymous wrote:It’s the same reason why I paid for DC’s private school. It’s not for prestige, but so that they have good teachers who inspire then and are surrounded by peers who want to do something with their lives, not just get a C and go back to playing video games.

I don’t think it’s justifiable to pay $100k a year if you can get the same level of experience elsewhere cheaper.

But I also don’t want DC to be in Alabama University for free where football and bleached blonds with outfits are the main focus.


Where's Alabama University?


Getting drunk and working at their dad's car dealership/Raymond James office.
Anonymous
Post 12/03/2024 15:22     Subject: Re:Is it responsible to spend 90K/yr in education?
UVA is one of the best state schools in the country so it’s an easy answer.