Anonymous
04/21/2022 15:41
Subject: Re:Private school -- what portion of income are people spending?
Anonymous wrote:Anonymous wrote:How do so many in their mid 30s have 2-3 million dollars in cash/investments? Presumably these people all went to grad school until their early/mid 20s. To save 2-3m in 10-12 years is exceptional even for a household of two high earners, absent some windfall like major house appreciation, inheritance, etc. Still true even if no grad school and spread over 12-15 years. I don't think 2-3m in the bank is a prerequisite for putting 2 kids through private school.
Clearly a lot of inherited wealth masquerading as bootstraps
This.
Anonymous
04/21/2022 14:02
Subject: Private school -- what portion of income are people spending?
$480k HHI and $70k on private school so about 15 percent. Started private in middle school so could save more.
Anonymous
04/21/2022 13:55
Subject: Re:Private school -- what portion of income are people spending?
Anonymous wrote:Anonymous wrote:Related question: what percent have generational wealth from family and/or grandparents paying the tuition?
Are you referring to “generational wealth” as not having student loans because your parents paid for your tuition?
Generational wealth meaning a trust fund or significant inheritance.
Anonymous
04/21/2022 10:45
Subject: Re:Private school -- what portion of income are people spending?
Anonymous wrote:Related question: what percent have generational wealth from family and/or grandparents paying the tuition?
Are you referring to “generational wealth” as not having student loans because your parents paid for your tuition?
Anonymous
04/21/2022 10:23
Subject: Re:Private school -- what portion of income are people spending?
Related question: what percent have generational wealth from family and/or grandparents paying the tuition?
Anonymous
04/20/2022 10:14
Subject: Re:Private school -- what portion of income are people spending?
15% of income. But housing is only 5% and we are able to save and are on track for college and retirement. We will never be wealthy according to DCUM, but this works for our family. We also travel regularly, though probably not at the luxury level as others. Shrug. We don’t feel deprived nor anxious about the future. You can absolutely make independent schools work if you want to, OP.
Anonymous
04/20/2022 09:56
Subject: Re:Private school -- what portion of income are people spending?
Anonymous wrote:We are the exception to the rule, but our $50,000 tuition a year makes no impact on our financial situation as we are high net worth. But I grew up LC so I do wonder about people that sacrifice retirement and travel for private school. I’m not sure it’s worth it. In particular, I would do public elementary till 4th, at least. If you are in APS or Fairfax.
Opposite right now with COVID, the younger cohorts are all struggling as their entry to the school/classroom environment was severely impacted by COVID, and for the publics it was basically over a year of virtual. Even this year being in-person, a much higher percentage of the kindergarteners are coming in without having experienced preschool and socialization and they have a lot more work to do compared to kindergarten of years past. The social dynamics of the classroom and proper classroom behavior still need to be remediated before learning can fully resume, let alone catch up. The average is way behind right now compared to privates (FWIW, ours was virtual for a few months in spring 2020, and in-person but masked 20-21 school year and first half this year).
Older kids, on the other hand, while they suffered learning loss and other mental health struggles during the pandemic, are doing a much better job of getting back to the routine and making up for lost time. That's not to say there aren't struggles or that this is necessarily true for every kid of course, but IN GENERAL the public schools are doing better for older kids RELATIVE TO younger kids right now, and I would emphasize private schools for younger kids at least for another year or two until the after effects of COVID/virtual on the public schools stabilize and diminish.
Anonymous
04/20/2022 07:16
Subject: Private school -- what portion of income are people spending?
Anonymous wrote:We have two kids--one at home still and one in preschool, and are on the fence about whether to go the private route for both for elementary. I know we can technically afford it and whether it's "worth it" is subjective, but I'm wondering what portion of their income most private school families are paying for tuition. We take home about $25k per month after maxing out 401ks, not including year end bonuses, which are typically $100k after taxes. We have about $250k in retirement (in our mid 30s), $100k in liquid investments, $100k in illiquid investments (exit in ~3 years hopefully for 2x returns), and $600k in home equity. Our biggest monthly expenses are mortgage ($7.5k including property taxes), and a nanny ($4.2k), but I anticipate the nanny expense will go away or be significantly lower once both kids are in school in a few years. Other big expenses are our student loans ($1.2k), car payments ($1.1k), utilities ($1.5k)--other than that, we typically spend about $7k/month on groceries, home maintenance, home supplies, gas, kids lessons, medical visits, clothes, entertainment, etc. This is not spending wildly, but also not trying hard to budget. Our income will most likely continue to go up given our industries, but of course there are no guarantees. We're looking at schools that would be in the $40k range, and I realize tuition will increase every year. There are a lot of factors to the private/public decision outside of the financial piece that I won't get into.
So my question is: is our financial situation typical for families with 2 kids in private? I know we make good money, but $80k for two kids is still almost 20% of our take home after taxes. Again, I realize people have different comfort levels, but I'm curious where we fall in the range.
Dude, learn to budget.
Anonymous
04/19/2022 23:30
Subject: Private school -- what portion of income are people spending?
Anonymous wrote:Wtf do you people do for work?
Male gigalo
Anonymous
04/19/2022 22:57
Subject: Private school -- what portion of income are people spending?
Wtf do you people do for work?
Anonymous
04/19/2022 22:46
Subject: Re:Private school -- what portion of income are people spending?
About 3% of gross
Anonymous
04/19/2022 22:06
Subject: Re:Private school -- what portion of income are people spending?
Anonymous wrote:Anonymous wrote:We make 450k in income and pay for one child in private for almost 50k in tuition. Child has some needs so smaller class size is everything but it’s very painful and extremely stressful as we have 3 kids (one in private and younger 2 are in public). No way can we afford this for 3 kids
Of course you can afford three in private. You'd just have to reduce other expenses. Many people life off of far less even after you would have paid for three for private.
This! You can afford it, you kust might not be able to afford themost expensive ones in the area and all the other trappings of high Income. Determine the priorities.
Anonymous
04/19/2022 21:35
Subject: Re:Private school -- what portion of income are people spending?
Anonymous wrote:We make 450k in income and pay for one child in private for almost 50k in tuition. Child has some needs so smaller class size is everything but it’s very painful and extremely stressful as we have 3 kids (one in private and younger 2 are in public). No way can we afford this for 3 kids
Of course you can afford three in private. You'd just have to reduce other expenses. Many people life off of far less even after you would have paid for three for private.
Anonymous
04/19/2022 21:29
Subject: Re:Private school -- what portion of income are people spending?
We make 450k in income and pay for one child in private for almost 50k in tuition. Child has some needs so smaller class size is everything but it’s very painful and extremely stressful as we have 3 kids (one in private and younger 2 are in public). No way can we afford this for 3 kids
Anonymous
04/19/2022 17:28
Subject: Private school -- what portion of income are people spending?
2 percent