Anonymous
Post 01/21/2020 13:09     Subject: Tips for saving for college? How much to do you put into your kids college savings acct?
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.
Anonymous
Post 01/21/2020 12:59     Subject: Re:Tips for saving for college? How much to do you put into your kids college savings acct?
I have one teenager and I haven't saved a dime so don't feel bad OP.
Anonymous
Post 01/21/2020 12:33     Subject: Tips for saving for college? How much to do you put into your kids college savings acct?
Anonymous wrote:
Anonymous wrote:I’m mystified, op. How have you gotten to a point where you have 4 kids and only now thinking of college.

How much do you make? How much do you want to fund? What is your overall budget?

We’ve got two kids, make $240 and save $700 per month per kid. We will probably bump up to the $14k each year. But I’m not really sure how that’s going to help you.



It's not that I didn't think @ it. We have 4 529s. I think the issue is that I redid the math and realize I could use $500k ++ in college savings and realize I might have $200k. It's a little late now to 'have less kids' Frankly, I paid for my own college and my husband paid half of his - so the backup plan is they need to get a scholarship or a loan. We do ok (not DCMUM wealthy/ upper class but ok). The younger ones are pretty young, early elem so I have time to save. Also there is an investment factor here. I don't know my 529 is making an adequate return. Should I ditch and manage the money myself?

Also note - every person I know of (not that few since my kids aren't that old) seem to be like - I'm scraping by now bc I'm putting kids through college. So it seems like a lot of ppl don't have it all saved?


For 529's, from age about 2 - 12, we put every bonus into these accounts. 2 kids. Total 529 contributions ended up being about 150K each. Sounds like a lot, but averaged out over 10 years it was 30K per year. Stopped saving at around age 12. Ended up with about 300K each due to stock market gains. Should have about 100K leftover, even after both are full pays. Already investing putting that in higher return funds for the grandkids.
Anonymous
Post 01/21/2020 11:35     Subject: Tips for saving for college? How much to do you put into your kids college savings acct?
We chose to have 1 kid and have been putting $5k/yr into his 529 account since birth. He's 3y/o and we have 26k or so saved so far. The 5k is the max state income tax deduction for MD. HHI is approx 180k

We don't regularly vacation. Last trip we took was 5 years ago. We "stay-cation" instead so we can prioritize retirement and education saving.
Anonymous
Post 01/21/2020 11:09     Subject: Tips for saving for college? How much to do you put into your kids college savings acct?
Anonymous wrote:For those using 529 accounts-- what investment strategies are you using.

I have a 9 year old whose portfolio is 60% equity (index) on an aggressive strategy.

My 6 year old's account is 70% equity (index) on an aggressive strategy.

I am worried about my 9 year old's account losing $$$ if there is a market downturn. We'll need that money in 8 years. Her account is getting 8.5% return) while the 6 year old's account has gotten 18% returns.

Thoughts?



We have our kids' plans 100% in US equity. They have gone up something like 60% in the last 5 years.
Anonymous
Post 01/21/2020 10:59     Subject: Tips for saving for college? How much to do you put into your kids college savings acct?
PS: Both portfolio's are "age based" tracks.
Anonymous
Post 01/21/2020 10:58     Subject: Tips for saving for college? How much to do you put into your kids college savings acct?
For those using 529 accounts-- what investment strategies are you using.

I have a 9 year old whose portfolio is 60% equity (index) on an aggressive strategy.

My 6 year old's account is 70% equity (index) on an aggressive strategy.

I am worried about my 9 year old's account losing $$$ if there is a market downturn. We'll need that money in 8 years. Her account is getting 8.5% return) while the 6 year old's account has gotten 18% returns.

Thoughts?
Anonymous
Post 01/21/2020 10:24     Subject: Re:Tips for saving for college? How much to do you put into your kids college savings acct?
HHI $375K, two kids, started their 529's with $20K each at birth and we are putting $500 in each per month.
Anonymous
Post 01/21/2020 09:46     Subject: Tips for saving for college? How much to do you put into your kids college savings acct?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I’m mystified, op. How have you gotten to a point where you have 4 kids and only now thinking of college.

How much do you make? How much do you want to fund? What is your overall budget?

We’ve got two kids, make $240 and save $700 per month per kid. We will probably bump up to the $14k each year. But I’m not really sure how that’s going to help you.



It's not that I didn't think @ it. We have 4 529s. I think the issue is that I redid the math and realize I could use $500k ++ in college savings and realize I might have $200k. It's a little late now to 'have less kids' Frankly, I paid for my own college and my husband paid half of his - so the backup plan is they need to get a scholarship or a loan. We do ok (not DCMUM wealthy/ upper class but ok). The younger ones are pretty young, early elem so I have time to save. Also there is an investment factor here. I don't know my 529 is making an adequate return. Should I ditch and manage the money myself?

Also note - every person I know of (not that few since my kids aren't that old) seem to be like - I'm scraping by now bc I'm putting kids through college. So it seems like a lot of ppl don't have it all saved?


Correct, because Americans are foolish with their money.

We superfunded each of our kids education at birth with 50k in 529 invest. Haven't put a dime in it since. 10yr old has 123k and my13yr old has 163k.

4 kids. We would have drowned with daycare. Not a chance.


You sound very out of touch. College costs have increased at a much faster rate than salaries. Someone making 50k per year is not going to have some random 50K lying around to "supercharge" their kid's 529 at birth.
Anonymous
Post 01/21/2020 09:44     Subject: Re:Tips for saving for college? How much to do you put into your kids college savings acct?
Anonymous wrote:We have 3 kids and do about $4,000 each year, for each of them. It's the upper limit of what we can afford, without compromising our retirement. But neither of our families were able to contribute anything to our college costs, so to be able to give each of them about $100k is a huge deal in our family.


This is about what we are saving too, and similarly my parents had nothing for my siblings and I for college so we will at least be able to give them more of a leg up than I had. As long as DH and I are still working at that point we should be able to contribute once they are in college as well.

DH and his sister fret a bit more about it because their parents were able to cover everything, but we do what we can. If we can save about enough to cover in-state I will feel good about it.
Anonymous
Post 01/21/2020 06:29     Subject: Tips for saving for college? How much to do you put into your kids college savings acct?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I’m mystified, op. How have you gotten to a point where you have 4 kids and only now thinking of college.

How much do you make? How much do you want to fund? What is your overall budget?

We’ve got two kids, make $240 and save $700 per month per kid. We will probably bump up to the $14k each year. But I’m not really sure how that’s going to help you.



It's not that I didn't think @ it. We have 4 529s. I think the issue is that I redid the math and realize I could use $500k ++ in college savings and realize I might have $200k. It's a little late now to 'have less kids' Frankly, I paid for my own college and my husband paid half of his - so the backup plan is they need to get a scholarship or a loan. We do ok (not DCMUM wealthy/ upper class but ok). The younger ones are pretty young, early elem so

Also note - every person I know of (not that few since my kids aren't that old) [b]seem to be like - I'm scraping by now bc I'm

I am one of four kids. It is easy it is called middle class. My Dad was middle class when he had four kids then died as oldest starting college and medical bills ate it all up as self employed. If he had a 529 plan Mom would have raided it for food heat and car repairs. Since my EFC was zero it would have been trouble anyhow

Guess what all four kids have masters degrees. Only plus my Fasfa ricked as we had a negative 20k net worth. Even with Mom back at work an EFC of zero. Three kids in


Correct, because Americans are foolish with their money.

We superfunded each of our kids education at birth with 50k in 529 invest. Haven't put a dime in it since. 10yr old has 123k and my13yr old has 163k.

4 kids. We would have drowned with daycare. Not a chance.
Anonymous
Post 01/21/2020 04:53     Subject: Tips for saving for college? How much to do you put into your kids college savings acct?
Anonymous wrote:
Anonymous wrote:I’m mystified, op. How have you gotten to a point where you have 4 kids and only now thinking of college.

How much do you make? How much do you want to fund? What is your overall budget?

We’ve got two kids, make $240 and save $700 per month per kid. We will probably bump up to the $14k each year. But I’m not really sure how that’s going to help you.



It's not that I didn't think @ it. We have 4 529s. I think the issue is that I redid the math and realize I could use $500k ++ in college savings and realize I might have $200k. It's a little late now to 'have less kids' Frankly, I paid for my own college and my husband paid half of his - so the backup plan is they need to get a scholarship or a loan. We do ok (not DCMUM wealthy/ upper class but ok). The younger ones are pretty young, early elem so I have time to save. Also there is an investment factor here. I don't know my 529 is making an adequate return. Should I ditch and manage the money myself?

Also note - every person I know of (not that few since my kids aren't that old) seem to be like - I'm scraping by now bc I'm putting kids through college. So it seems like a lot of ppl don't have it all saved?


Correct, because Americans are foolish with their money.

We superfunded each of our kids education at birth with 50k in 529 invest. Haven't put a dime in it since. 10yr old has 123k and my13yr old has 163k.

4 kids. We would have drowned with daycare. Not a chance.
Anonymous
Post 01/20/2020 22:22     Subject: Tips for saving for college? How much to do you put into your kids college savings acct?
Anonymous wrote:How much are you saving a year for your child's college fund?

I admit it, we suck and are not saving enough. Tips on saving $ for college for the kids? Trying to think of some ideas. In the last several years we got to the 10% savings level for 401Ks. I don't want to take away from that. We have 4 kids.

I could do less vaca, but then I would be personally miserable


What is vaca? Is that some sort of drug or alcohol?
Anonymous
Post 01/20/2020 21:39     Subject: Re:Tips for saving for college? How much to do you put into your kids college savings acct?
We have 3 kids and do about $4,000 each year, for each of them. It's the upper limit of what we can afford, without compromising our retirement. But neither of our families were able to contribute anything to our college costs, so to be able to give each of them about $100k is a huge deal in our family.
Anonymous
Post 01/20/2020 19:39     Subject: Tips for saving for college? How much to do you put into your kids college savings acct?
Anonymous wrote:
Anonymous wrote:We do $8000 a year for our one child. We started when she was 1 and she will go to college at 17. Unfortunately, we still don't think that will fully cover private college but we will hopefully be able to cover the difference with cash flow.


Yeah we likely won’t be able to save enough to fully cover either but expect to both still be working at that point. Heck, we’re paying $3k a month for two kids in daycare right now, so there’s no reason we can’t do this once they’re in college. There are some tax incentives for higher education spending too.


Ha ha it phase out for parents I get no deduction my kids in college. I pay almost 8k a month on ten payment plan for Out of state schools with merit aid.