Anonymous
08/22/2018 21:22
Subject: Re:Families of five, making under 150k, share your budget
Anonymous wrote:Anonymous wrote:Anonymous wrote:We are a family of 5 and make 130K. Our children are 18, 15 and 13. I have basically been a SAHM since oldest DS was 2 (I worked full time until shortly before #2 was born.) I went back to work very part time (9 hours a week) when DS #3 started kindergarten. I work at a preschool during the school year so we only needed child care when I was working full time. My income is used for kids activities and very modest vacation (cheap beach house for a week, drive vacations to visit family, etc.)
We bought our home in Fairfax County in 1997 so our mortgage is very low - $1600 PITI. We own modest vehicles and keep them for 10 plus years - we stagger when we buy new so we've typically had one car payment for 4 years, then 2 years with no payment (save that payment for future car downpayment.) Kids go to Fairfax County schools.
I rarely buy new clothes for myself. I don't need a professional wardrobe. DS is in the IT field and wears more casual clothes (khaki pants, polos) so he doesn't have an expensive clothing budget. I rarely have to go to the dry cleaners - once or twice a year when we get invited to a wedding and have to pull out the "fancy clothes."
DS works 4 miles from home so we have minimal commuting costs. I often only gas up my car every two weeks.
The only thing we have gotten help with is college education. My parents paid for my college education and DS did the 12 year plan (worked full time from age 18 and went to school part time - his work paid for his degree via tuition reimbursement.) I have a childless aunt who has set up 529s for the kids which will cover in-state tuition. DS #1 is starting at college this week. We save a modest amount for the kids - our savings will cover books and expenses. DS and I were older when we got married. We both had bought first homes on our own - I bought a condo at 27 with no help from parents and DS had bought a townhouse at 26, again with no help. When we got married, we sold both and were able to put 20% down on a single family home in Fairfax County. We've refinanced a couple of times to get the interest rate really low. We made the decision to afford the house on his income alone, thinking we were going to have kids and I would become a SAHM.
The other really smart thing we did - DS started maxing out his 401K at 18 when he went to work full time. I maxed out the Thrift while I was working and rolled it over to an IRA when I resigned. We are way ahead on retirement savings.
We don't eat out very often. There have been several years when we haven't taken a real vacation - we save up to take a nice vacation every few years. Its not easy living in this area on such a modest budget, but if your housing costs are low, it can be done. I will admit there are times when I wish I could afford the fun activities, beautiful clothes, and fancy cars that some of my friends have. But at the end of the day, I wouldn't trade the family time that I have for more things.
Rough budget:
7000 take home pay
Fixed Monthly Costs:
1600 PITI
450 Car Loan
300 Car Insurance
450 Cable/Internet/Cell
400 Utilities
1000 Food
350 Auto Gas
You sound pretty thrifty, but the "smartest" thing you did is have relatives who can pay for kids' education.
The aversion to student loans on DCUM is ridiculous. The smartest kind of loan to get is an education loan - data has shown over and over that wages for college graduates are hundreds of thousands of dollars more over a lifetime than high schools graduates or even some-college graduates. They also have lower rates of unemployment, even during recessions.
The population which gets into trouble is individuals who take out loans and don't finish, so they get minimal benefit from their additional education while getting all of the loans. There are exceptions here and there, but generally speaking, investing in college pays for itself many times over.
I myself took out about $60K in student loans in the 90s, and am still paying them, 18 years out from graduation. My siblings are all still paying theirs, as well. My kids are fortunate in that our HHI is high, so we will likely pay for most/all their college, but we have 4 kids and if they have to take out loans to contribute toward their education, I think that is fine.
Some student loans are fine but too often they are a burden well into adulthood. If you really do have a high HHI how have you not paid yours off yet? Pay that thing down.
Anonymous
08/22/2018 10:05
Subject: Families of five, making under 150k, share your budget
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Lol! We all make more than that
I agree with this (sadly).
No one I know making less than $150K would have had 3 kids.
The answer to this question is family money. They don’t save money (cause they are expecting inheritance), they get down payments and cars when they want, and private school tuition is a given. No amount of rice and beans or thrift stores could make a three kid family possible in this area. Maybe in Burke or Lorton or Anacostia or something, but nothing even remotely close in or in a good area.
this kind of just shows how sheltered people are in this area. they honestly have no comprehension of how many others live.
Exactly. Who do you think lives in all the apartments, condos, townhomes, etc.?
Anonymous
08/22/2018 09:49
Subject: Re:Families of five, making under 150k, share your budget
Anonymous wrote:Anonymous wrote:We are a family of 5 and make 130K. Our children are 18, 15 and 13. I have basically been a SAHM since oldest DS was 2 (I worked full time until shortly before #2 was born.) I went back to work very part time (9 hours a week) when DS #3 started kindergarten. I work at a preschool during the school year so we only needed child care when I was working full time. My income is used for kids activities and very modest vacation (cheap beach house for a week, drive vacations to visit family, etc.)
We bought our home in Fairfax County in 1997 so our mortgage is very low - $1600 PITI. We own modest vehicles and keep them for 10 plus years - we stagger when we buy new so we've typically had one car payment for 4 years, then 2 years with no payment (save that payment for future car downpayment.) Kids go to Fairfax County schools.
I rarely buy new clothes for myself. I don't need a professional wardrobe. DS is in the IT field and wears more casual clothes (khaki pants, polos) so he doesn't have an expensive clothing budget. I rarely have to go to the dry cleaners - once or twice a year when we get invited to a wedding and have to pull out the "fancy clothes."
DS works 4 miles from home so we have minimal commuting costs. I often only gas up my car every two weeks.
The only thing we have gotten help with is college education. My parents paid for my college education and DS did the 12 year plan (worked full time from age 18 and went to school part time - his work paid for his degree via tuition reimbursement.) I have a childless aunt who has set up 529s for the kids which will cover in-state tuition. DS #1 is starting at college this week. We save a modest amount for the kids - our savings will cover books and expenses. DS and I were older when we got married. We both had bought first homes on our own - I bought a condo at 27 with no help from parents and DS had bought a townhouse at 26, again with no help. When we got married, we sold both and were able to put 20% down on a single family home in Fairfax County. We've refinanced a couple of times to get the interest rate really low. We made the decision to afford the house on his income alone, thinking we were going to have kids and I would become a SAHM.
The other really smart thing we did - DS started maxing out his 401K at 18 when he went to work full time. I maxed out the Thrift while I was working and rolled it over to an IRA when I resigned. We are way ahead on retirement savings.
We don't eat out very often. There have been several years when we haven't taken a real vacation - we save up to take a nice vacation every few years. Its not easy living in this area on such a modest budget, but if your housing costs are low, it can be done. I will admit there are times when I wish I could afford the fun activities, beautiful clothes, and fancy cars that some of my friends have. But at the end of the day, I wouldn't trade the family time that I have for more things.
Rough budget:
7000 take home pay
Fixed Monthly Costs:
1600 PITI
450 Car Loan
300 Car Insurance
450 Cable/Internet/Cell
400 Utilities
1000 Food
350 Auto Gas
You sound pretty thrifty, but the "smartest" thing you did is have relatives who can pay for kids' education.
The aversion to student loans on DCUM is ridiculous. The smartest kind of loan to get is an education loan - data has shown over and over that wages for college graduates are hundreds of thousands of dollars more over a lifetime than high schools graduates or even some-college graduates. They also have lower rates of unemployment, even during recessions.
The population which gets into trouble is individuals who take out loans and don't finish, so they get minimal benefit from their additional education while getting all of the loans. There are exceptions here and there, but generally speaking, investing in college pays for itself many times over.
I myself took out about $60K in student loans in the 90s, and am still paying them, 18 years out from graduation. My siblings are all still paying theirs, as well. My kids are fortunate in that our HHI is high, so we will likely pay for most/all their college, but we have 4 kids and if they have to take out loans to contribute toward their education, I think that is fine.
Anonymous
08/21/2018 14:07
Subject: Re:Families of five, making under 150k, share your budget
Anonymous wrote:We are a family of 5 and make 130K. Our children are 18, 15 and 13. I have basically been a SAHM since oldest DS was 2 (I worked full time until shortly before #2 was born.) I went back to work very part time (9 hours a week) when DS #3 started kindergarten. I work at a preschool during the school year so we only needed child care when I was working full time. My income is used for kids activities and very modest vacation (cheap beach house for a week, drive vacations to visit family, etc.)
We bought our home in Fairfax County in 1997 so our mortgage is very low - $1600 PITI. We own modest vehicles and keep them for 10 plus years - we stagger when we buy new so we've typically had one car payment for 4 years, then 2 years with no payment (save that payment for future car downpayment.) Kids go to Fairfax County schools.
I rarely buy new clothes for myself. I don't need a professional wardrobe. DS is in the IT field and wears more casual clothes (khaki pants, polos) so he doesn't have an expensive clothing budget. I rarely have to go to the dry cleaners - once or twice a year when we get invited to a wedding and have to pull out the "fancy clothes."
DS works 4 miles from home so we have minimal commuting costs. I often only gas up my car every two weeks.
The only thing we have gotten help with is college education. My parents paid for my college education and DS did the 12 year plan (worked full time from age 18 and went to school part time - his work paid for his degree via tuition reimbursement.) I have a childless aunt who has set up 529s for the kids which will cover in-state tuition. DS #1 is starting at college this week. We save a modest amount for the kids - our savings will cover books and expenses. DS and I were older when we got married. We both had bought first homes on our own - I bought a condo at 27 with no help from parents and DS had bought a townhouse at 26, again with no help. When we got married, we sold both and were able to put 20% down on a single family home in Fairfax County. We've refinanced a couple of times to get the interest rate really low. We made the decision to afford the house on his income alone, thinking we were going to have kids and I would become a SAHM.
The other really smart thing we did - DS started maxing out his 401K at 18 when he went to work full time. I maxed out the Thrift while I was working and rolled it over to an IRA when I resigned. We are way ahead on retirement savings.
We don't eat out very often. There have been several years when we haven't taken a real vacation - we save up to take a nice vacation every few years. Its not easy living in this area on such a modest budget, but if your housing costs are low, it can be done. I will admit there are times when I wish I could afford the fun activities, beautiful clothes, and fancy cars that some of my friends have. But at the end of the day, I wouldn't trade the family time that I have for more things.
Rough budget:
7000 take home pay
Fixed Monthly Costs:
1600 PITI
450 Car Loan
300 Car Insurance
450 Cable/Internet/Cell
400 Utilities
1000 Food
350 Auto Gas
You sound pretty thrifty, but the "smartest" thing you did is have relatives who can pay for kids' education.
Anonymous
08/21/2018 10:20
Subject: Re:Families of five, making under 150k, share your budget
We are a family of 5 with a HHI of $150K and we are doing just fine. My partner has been SAH with the kids but will be looking for something part time in the fall since all three will be in school full time.
The biggest thing is that we live in PG county and can afford at big house. We only have one car loan at a time and buy used cars not new. We look at consignments sales or get hand me downs for most of my kids clothing. We go to Payless for shoes for them and Target if we need any new clothing. My commute is only 5 miles each way so we don't need a lot money in the budget for gas.
Fixed Monthly Costs:
$1950 PITI
$250 Car Loan
$200 Car Insurance
$200 Cable/Internet/Cell
$400 Utilities
$1000 Food
$100 Auto Gas
$300 529 (yes I know this isn't much but it's what we can do right now)
It isn't fancy but it is doable for sure.
The biggest thing is that we live in PG county and can afford at big house. We only have one car loan at a time and buy used cars not new. We look at consignments sales or get hand me downs for most of my kids clothing. We go to Payless for shoes for them and Target if we need any new clothing. My commute is only 5 miles each way so we don't need a lot money in the budget for gas.
Fixed Monthly Costs:
$1950 PITI
$250 Car Loan
$200 Car Insurance
$200 Cable/Internet/Cell
$400 Utilities
$1000 Food
$100 Auto Gas
$300 529 (yes I know this isn't much but it's what we can do right now)
It isn't fancy but it is doable for sure.
Anonymous
08/20/2018 21:49
Subject: Re:Families of five, making under 150k, share your budget
Current median HHI in DC area is $100k. Now that includes singles, divorcees, etc. but still. $150k for a family of five is not shockingly low. It's pretty standard.
Our HHI is $178 for four and we are going to have a fifth soon.
We aren't rolling in dough but do just fine. $18k in the 401(k), $5k in each 529 and pay down mortgage principal. Every year grow just a bit richer.
Our HHI is $178 for four and we are going to have a fifth soon.
We aren't rolling in dough but do just fine. $18k in the 401(k), $5k in each 529 and pay down mortgage principal. Every year grow just a bit richer.
Anonymous
08/20/2018 07:48
Subject: Re:Families of five, making under 150k, share your budget
We are a family of 5 and make 130K. Our children are 18, 15 and 13. I have basically been a SAHM since oldest DS was 2 (I worked full time until shortly before #2 was born.) I went back to work very part time (9 hours a week) when DS #3 started kindergarten. I work at a preschool during the school year so we only needed child care when I was working full time. My income is used for kids activities and very modest vacation (cheap beach house for a week, drive vacations to visit family, etc.)
We bought our home in Fairfax County in 1997 so our mortgage is very low - $1600 PITI. We own modest vehicles and keep them for 10 plus years - we stagger when we buy new so we've typically had one car payment for 4 years, then 2 years with no payment (save that payment for future car downpayment.) Kids go to Fairfax County schools.
I rarely buy new clothes for myself. I don't need a professional wardrobe. DS is in the IT field and wears more casual clothes (khaki pants, polos) so he doesn't have an expensive clothing budget. I rarely have to go to the dry cleaners - once or twice a year when we get invited to a wedding and have to pull out the "fancy clothes."
DS works 4 miles from home so we have minimal commuting costs. I often only gas up my car every two weeks.
The only thing we have gotten help with is college education. My parents paid for my college education and DS did the 12 year plan (worked full time from age 18 and went to school part time - his work paid for his degree via tuition reimbursement.) I have a childless aunt who has set up 529s for the kids which will cover in-state tuition. DS #1 is starting at college this week. We save a modest amount for the kids - our savings will cover books and expenses. DS and I were older when we got married. We both had bought first homes on our own - I bought a condo at 27 with no help from parents and DS had bought a townhouse at 26, again with no help. When we got married, we sold both and were able to put 20% down on a single family home in Fairfax County. We've refinanced a couple of times to get the interest rate really low. We made the decision to afford the house on his income alone, thinking we were going to have kids and I would become a SAHM.
The other really smart thing we did - DS started maxing out his 401K at 18 when he went to work full time. I maxed out the Thrift while I was working and rolled it over to an IRA when I resigned. We are way ahead on retirement savings.
We don't eat out very often. There have been several years when we haven't taken a real vacation - we save up to take a nice vacation every few years. Its not easy living in this area on such a modest budget, but if your housing costs are low, it can be done. I will admit there are times when I wish I could afford the fun activities, beautiful clothes, and fancy cars that some of my friends have. But at the end of the day, I wouldn't trade the family time that I have for more things.
Rough budget:
7000 take home pay
Fixed Monthly Costs:
1600 PITI
450 Car Loan
300 Car Insurance
450 Cable/Internet/Cell
400 Utilities
1000 Food
350 Auto Gas
We bought our home in Fairfax County in 1997 so our mortgage is very low - $1600 PITI. We own modest vehicles and keep them for 10 plus years - we stagger when we buy new so we've typically had one car payment for 4 years, then 2 years with no payment (save that payment for future car downpayment.) Kids go to Fairfax County schools.
I rarely buy new clothes for myself. I don't need a professional wardrobe. DS is in the IT field and wears more casual clothes (khaki pants, polos) so he doesn't have an expensive clothing budget. I rarely have to go to the dry cleaners - once or twice a year when we get invited to a wedding and have to pull out the "fancy clothes."
DS works 4 miles from home so we have minimal commuting costs. I often only gas up my car every two weeks.
The only thing we have gotten help with is college education. My parents paid for my college education and DS did the 12 year plan (worked full time from age 18 and went to school part time - his work paid for his degree via tuition reimbursement.) I have a childless aunt who has set up 529s for the kids which will cover in-state tuition. DS #1 is starting at college this week. We save a modest amount for the kids - our savings will cover books and expenses. DS and I were older when we got married. We both had bought first homes on our own - I bought a condo at 27 with no help from parents and DS had bought a townhouse at 26, again with no help. When we got married, we sold both and were able to put 20% down on a single family home in Fairfax County. We've refinanced a couple of times to get the interest rate really low. We made the decision to afford the house on his income alone, thinking we were going to have kids and I would become a SAHM.
The other really smart thing we did - DS started maxing out his 401K at 18 when he went to work full time. I maxed out the Thrift while I was working and rolled it over to an IRA when I resigned. We are way ahead on retirement savings.
We don't eat out very often. There have been several years when we haven't taken a real vacation - we save up to take a nice vacation every few years. Its not easy living in this area on such a modest budget, but if your housing costs are low, it can be done. I will admit there are times when I wish I could afford the fun activities, beautiful clothes, and fancy cars that some of my friends have. But at the end of the day, I wouldn't trade the family time that I have for more things.
Rough budget:
7000 take home pay
Fixed Monthly Costs:
1600 PITI
450 Car Loan
300 Car Insurance
450 Cable/Internet/Cell
400 Utilities
1000 Food
350 Auto Gas
Anonymous
08/19/2018 17:20
Subject: Families of five, making under 150k, share your budget
Anonymous wrote:Anonymous wrote:Anonymous wrote:Family of 5 here. Make $162K one earner. No longer live in DC area but lived there for many years on about $140K. It is doable for us. However, we (parents) had no college loans, and I saved up a lot before we had kids so had savings to buy cars with cash, etc. We also don't live extravagantly. Lived in older and smaller house in Fairfax Cty. Cost of house now is similar.
Approx. Budget on $13,500 Monthly Gross
Mortgage: $2800 (15 year)
Utilities: 300
Food: 800
Internet/TV: 100
Cell Phones: 100
Gasoline/Car Ins/Maint: 600
Entertainment/Travel/Activities: 1200
Health Costs (all): 1100
Taxes (Fed/State): 2000
401K Savings: 2000
IRA Savings: 1000
College Savings: 500
Clothes: 200
Misc: 800
Having no childcare costs helps. I cook mostly from scratch. We're not big meat eaters. We aren't into designer things.
My kids aren't in travel sports (their choice) or other expensive activities. We do scouts and school sports. Vacations are mostly by car and travel points racked up from work travel. Camps are usually community ones.
We are DIYers for fixing a lot of things. We mow our own lawn, buy secondhand replacement parts, etc. We have limited data plan for phones.
It would be much harder to do with two workers at that salary due to childcare costs and not having time to cook, fix things, etc.
Nice budget. You can afford a nice quality of life (healthy travel and leisure budget) while still saving $36000 for retirement. Curious about whether you are allowed to save that much in retirement accounts. I thought the max was $18500 for 401k and $6000 for an IRA
My husband is 50 so he can put in an extra $6,000 per year for a total of $24K (I guess it's $24.5K now). Even though I don't work, I can do a spousal IRA. The limits were $6500 last year for a 50+ aged person and $5500 for those under 50, so we can put in $12K total. Not sure if the limits have been updated this year. I'll have to check.
Thanks for the explanation. Again, great job on saving so much and still living so comfortably.
Anonymous
08/19/2018 17:03
Subject: Families of five, making under 150k, share your budget
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Lol! We all make more than that
I agree with this (sadly).
No one I know making less than $150K would have had 3 kids.
The answer to this question is family money. They don’t save money (cause they are expecting inheritance), they get down payments and cars when they want, and private school tuition is a given. No amount of rice and beans or thrift stores could make a three kid family possible in this area. Maybe in Burke or Lorton or Anacostia or something, but nothing even remotely close in or in a good area.
You are so wrong. We are a family of 3 with two incomes making a combined 150k with limited growth potential living in NW DC (IB for Janney). Our PITI is 3500 a month (yes let everyone gasp), but it is 28% of our gross. We contribute 10% of our salaries to our TSP with a 5% match to give us 15% plus pension retirement savings. We contribute $250 a month to a 529. We have no car or student loans. For most people, those are really good numbers.
We can afford aftercare, camp, and a few activities for our child. We go on a moderately priced vacation every year. We eat out sometimes and have cable. There is not a lot left over, but it is doable. If we were a single earner family and not worried about comfortable not paying for college, things would be a lot easier.
OP: our budget is not going to help your budget. At that salary and with that many kids things will be tight and you are going to have to make personal choices. One earner vs two is a huge difference because of childcare costs. The need/desire for a car is a big one. Funding a 529 or not is also a big expense.
$250 a month for three kids? Or $250 for each kid? Sorry to tell you this, but 12 years at $250 a month will probably pay for half a semester for one kid by the time they get to college.
And OP's kids will be eligible for financial aid. OP is doing great, their house is probably worth a boatload, and they're living within their means. The DCUM mindset that if you can't pay full freight for a SLAC out of pocket, you're a failure as a parent, is not reality.
you aren't living within your means if you are getting financial aid. Donations are paying for your education. People who don't qualify for Financial aid are paying for your education.
You have a very poor understanding of basic economics.
I understand basic price discrimination, which this is. And I, as a full pay parent, am making it possible for people to pay less than I do, for the same product. I’m mad about it, because there is no incentive to make or save more money, because the school (k-12 or college) will just take it.
Actually that’s not how it works. At all.
Anonymous
08/19/2018 17:01
Subject: Families of five, making under 150k, share your budget
Anonymous wrote:Anonymous wrote:Family of 5 here. Make $162K one earner. No longer live in DC area but lived there for many years on about $140K. It is doable for us. However, we (parents) had no college loans, and I saved up a lot before we had kids so had savings to buy cars with cash, etc. We also don't live extravagantly. Lived in older and smaller house in Fairfax Cty. Cost of house now is similar.
Approx. Budget on $13,500 Monthly Gross
Mortgage: $2800 (15 year)
Utilities: 300
Food: 800
Internet/TV: 100
Cell Phones: 100
Gasoline/Car Ins/Maint: 600
Entertainment/Travel/Activities: 1200
Health Costs (all): 1100
Taxes (Fed/State): 2000
401K Savings: 2000
IRA Savings: 1000
College Savings: 500
Clothes: 200
Misc: 800
Having no childcare costs helps. I cook mostly from scratch. We're not big meat eaters. We aren't into designer things.
My kids aren't in travel sports (their choice) or other expensive activities. We do scouts and school sports. Vacations are mostly by car and travel points racked up from work travel. Camps are usually community ones.
We are DIYers for fixing a lot of things. We mow our own lawn, buy secondhand replacement parts, etc. We have limited data plan for phones.
It would be much harder to do with two workers at that salary due to childcare costs and not having time to cook, fix things, etc.
Nice budget. You can afford a nice quality of life (healthy travel and leisure budget) while still saving $36000 for retirement. Curious about whether you are allowed to save that much in retirement accounts. I thought the max was $18500 for 401k and $6000 for an IRA
My husband is 50 so he can put in an extra $6,000 per year for a total of $24K (I guess it's $24.5K now). Even though I don't work, I can do a spousal IRA. The limits were $6500 last year for a 50+ aged person and $5500 for those under 50, so we can put in $12K total. Not sure if the limits have been updated this year. I'll have to check.
Anonymous
08/19/2018 16:32
Subject: Families of five, making under 150k, share your budget
Anonymous wrote:
Nice budget. You can afford a nice quality of life (healthy travel and leisure budget) while still saving $36000 for retirement. Curious about whether you are allowed to save that much in retirement accounts. I thought the max was $18500 for 401k and $6000 for an IRA
You are allowed to save as much as you want into a 401k. But you only get a tax benefit on $18500.
Anonymous
08/19/2018 16:09
Subject: Families of five, making under 150k, share your budget
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Lol! We all make more than that
I agree with this (sadly).
No one I know making less than $150K would have had 3 kids.
The answer to this question is family money. They don’t save money (cause they are expecting inheritance), they get down payments and cars when they want, and private school tuition is a given. No amount of rice and beans or thrift stores could make a three kid family possible in this area. Maybe in Burke or Lorton or Anacostia or something, but nothing even remotely close in or in a good area.
You are so wrong. We are a family of 3 with two incomes making a combined 150k with limited growth potential living in NW DC (IB for Janney). Our PITI is 3500 a month (yes let everyone gasp), but it is 28% of our gross. We contribute 10% of our salaries to our TSP with a 5% match to give us 15% plus pension retirement savings. We contribute $250 a month to a 529. We have no car or student loans. For most people, those are really good numbers.
We can afford aftercare, camp, and a few activities for our child. We go on a moderately priced vacation every year. We eat out sometimes and have cable. There is not a lot left over, but it is doable. If we were a single earner family and not worried about comfortable not paying for college, things would be a lot easier.
OP: our budget is not going to help your budget. At that salary and with that many kids things will be tight and you are going to have to make personal choices. One earner vs two is a huge difference because of childcare costs. The need/desire for a car is a big one. Funding a 529 or not is also a big expense.
$250 a month for three kids? Or $250 for each kid? Sorry to tell you this, but 12 years at $250 a month will probably pay for half a semester for one kid by the time they get to college.
And OP's kids will be eligible for financial aid. OP is doing great, their house is probably worth a boatload, and they're living within their means. The DCUM mindset that if you can't pay full freight for a SLAC out of pocket, you're a failure as a parent, is not reality.
you aren't living within your means if you are getting financial aid. Donations are paying for your education. People who don't qualify for Financial aid are paying for your education.
You have a very poor understanding of basic economics.
I understand basic price discrimination, which this is. And I, as a full pay parent, am making it possible for people to pay less than I do, for the same product. I’m mad about it, because there is no incentive to make or save more money, because the school (k-12 or college) will just take it.
If that’s so easy, just work part-time so you’ll get all these great breaks in life!
Anonymous
08/19/2018 16:07
Subject: Families of five, making under 150k, share your budget
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Lol! We all make more than that
I agree with this (sadly).
No one I know making less than $150K would have had 3 kids.
The answer to this question is family money. They don’t save money (cause they are expecting inheritance), they get down payments and cars when they want, and private school tuition is a given. No amount of rice and beans or thrift stores could make a three kid family possible in this area. Maybe in Burke or Lorton or Anacostia or something, but nothing even remotely close in or in a good area.
You are so wrong. We are a family of 3 with two incomes making a combined 150k with limited growth potential living in NW DC (IB for Janney). Our PITI is 3500 a month (yes let everyone gasp), but it is 28% of our gross. We contribute 10% of our salaries to our TSP with a 5% match to give us 15% plus pension retirement savings. We contribute $250 a month to a 529. We have no car or student loans. For most people, those are really good numbers.
We can afford aftercare, camp, and a few activities for our child. We go on a moderately priced vacation every year. We eat out sometimes and have cable. There is not a lot left over, but it is doable. If we were a single earner family and not worried about comfortable not paying for college, things would be a lot easier.
OP: our budget is not going to help your budget. At that salary and with that many kids things will be tight and you are going to have to make personal choices. One earner vs two is a huge difference because of childcare costs. The need/desire for a car is a big one. Funding a 529 or not is also a big expense.
$250 a month for three kids? Or $250 for each kid? Sorry to tell you this, but 12 years at $250 a month will probably pay for half a semester for one kid by the time they get to college.
And OP's kids will be eligible for financial aid. OP is doing great, their house is probably worth a boatload, and they're living within their means. The DCUM mindset that if you can't pay full freight for a SLAC out of pocket, you're a failure as a parent, is not reality.
you aren't living within your means if you are getting financial aid. Donations are paying for your education. People who don't qualify for Financial aid are paying for your education.
You have a very poor understanding of basic economics.
I understand basic price discrimination, which this is. And I, as a full pay parent, am making it possible for people to pay less than I do, for the same product. I’m mad about it, because there is no incentive to make or save more money, because the school (k-12 or college) will just take it.
Anonymous
08/19/2018 15:49
Subject: Families of five, making under 150k, share your budget
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Lol! We all make more than that
I agree with this (sadly).
No one I know making less than $150K would have had 3 kids.
The answer to this question is family money. They don’t save money (cause they are expecting inheritance), they get down payments and cars when they want, and private school tuition is a given. No amount of rice and beans or thrift stores could make a three kid family possible in this area. Maybe in Burke or Lorton or Anacostia or something, but nothing even remotely close in or in a good area.
You are so wrong. We are a family of 3 with two incomes making a combined 150k with limited growth potential living in NW DC (IB for Janney). Our PITI is 3500 a month (yes let everyone gasp), but it is 28% of our gross. We contribute 10% of our salaries to our TSP with a 5% match to give us 15% plus pension retirement savings. We contribute $250 a month to a 529. We have no car or student loans. For most people, those are really good numbers.
We can afford aftercare, camp, and a few activities for our child. We go on a moderately priced vacation every year. We eat out sometimes and have cable. There is not a lot left over, but it is doable. If we were a single earner family and not worried about comfortable not paying for college, things would be a lot easier.
OP: our budget is not going to help your budget. At that salary and with that many kids things will be tight and you are going to have to make personal choices. One earner vs two is a huge difference because of childcare costs. The need/desire for a car is a big one. Funding a 529 or not is also a big expense.
$250 a month for three kids? Or $250 for each kid? Sorry to tell you this, but 12 years at $250 a month will probably pay for half a semester for one kid by the time they get to college.
And OP's kids will be eligible for financial aid. OP is doing great, their house is probably worth a boatload, and they're living within their means. The DCUM mindset that if you can't pay full freight for a SLAC out of pocket, you're a failure as a parent, is not reality.
you aren't living within your means if you are getting financial aid. Donations are paying for your education. People who don't qualify for Financial aid are paying for your education.
You have a very poor understanding of basic economics.
Anonymous
08/19/2018 15:47
Subject: Families of five, making under 150k, share your budget
Anonymous wrote:Family of 5 here. Make $162K one earner. No longer live in DC area but lived there for many years on about $140K. It is doable for us. However, we (parents) had no college loans, and I saved up a lot before we had kids so had savings to buy cars with cash, etc. We also don't live extravagantly. Lived in older and smaller house in Fairfax Cty. Cost of house now is similar.
Approx. Budget on $13,500 Monthly Gross
Mortgage: $2800 (15 year)
Utilities: 300
Food: 800
Internet/TV: 100
Cell Phones: 100
Gasoline/Car Ins/Maint: 600
Entertainment/Travel/Activities: 1200
Health Costs (all): 1100
Taxes (Fed/State): 2000
401K Savings: 2000
IRA Savings: 1000
College Savings: 500
Clothes: 200
Misc: 800
Having no childcare costs helps. I cook mostly from scratch. We're not big meat eaters. We aren't into designer things.
My kids aren't in travel sports (their choice) or other expensive activities. We do scouts and school sports. Vacations are mostly by car and travel points racked up from work travel. Camps are usually community ones.
We are DIYers for fixing a lot of things. We mow our own lawn, buy secondhand replacement parts, etc. We have limited data plan for phones.
It would be much harder to do with two workers at that salary due to childcare costs and not having time to cook, fix things, etc.
Nice budget. You can afford a nice quality of life (healthy travel and leisure budget) while still saving $36000 for retirement. Curious about whether you are allowed to save that much in retirement accounts. I thought the max was $18500 for 401k and $6000 for an IRA