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poule deau
Member since Jan 2009
811 posts
| re: How much to save for kids' college tuition? (Posted on 1/3/13 at 4:59 pm to Chicken)
quote:
Otherwise, if you pull the money out for non-college tuition purposes, you pay taxes on the investment gains plus a 10% penalty.
I don't know about other state plans but La's offers more flexibility with the money:
quote:
Earnings on deposits are exempt from state and federal taxes when used to pay Qualified Higher Education Expenses, which include tuition, fees, room, board, books, supplies and equipment required for enrollment by the college.
LINK
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DapperDan 
LSU Fan
Member since Jul 2012
1226 posts
| re: How much to save for kids' college tuition? (Posted on 1/3/13 at 8:00 pm to Chicken)
(no message)
This post was edited on 3/7 at 11:18 am
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Bayou Tiger
LSU Fan
The Woodlands, TX
Member since Nov 2003
2921 posts
| re: How much to save for kids' college tuition? (Posted on 1/3/13 at 8:16 pm to Chicken)
Zero. They can get scholarships, jobs, and loans to understand their own value proposition.
In the meantime, I am more focused on our family finances. If the kids do really well and make the most of their opportunities, then it would be great to help out or pay for all of school - either along the way or perhaps clearing out the loans after they graduate.
If my kids want to get an art history degree from Tulane or Baylor then they are welcome to take out all of the loans and jobs they want.
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reb13 
Ole Miss Fan
Oxford, MS
Member since May 2010
7910 posts
| re: How much to save for kids' college tuition? (Posted on 1/3/13 at 9:27 pm to Chicken)
100k a kid
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TROLA
LSU Fan
BATON ROUGE
Member since Apr 2004
5204 posts
| re: How much to save for kids' college tuition? (Posted on 1/3/13 at 9:44 pm to Chicken)
Between my savings plan and their grandparents ( very fortunate here), we will have somewhere around 125k saved for our each of our two kids. I plan on being homest with the realities of the cost but not completely honest with the amount we have and are saving. My plan calls for a come to Jesus discussion when they reach High School to encourage grades that merit scholarships, if they decide to choose that path. I will let them know that the money saved for college can be used for such or for the beginning of their adult life both subject to our approval and the time/method of dispersement. All of this is contingent on us not needing the funds for the family.
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Cholo 
Arkansas Fan
El Paso, Texas
Member since Oct 2012
962 posts
| re: How much to save for kids' college tuition? (Posted on 1/3/13 at 10:15 pm to TROLA)
Glad I don't have kids. Thinking of buying 40 acres near Fort Davis, TX, to use during my time off.
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CajunAlum Tiger Fan
LSU Fan
Broussard
Member since Jan 2008
1583 posts
| re: How much to save for kids' college tuition? (Posted on 1/3/13 at 11:16 pm to Chicken)
All I know is that if you use the online calculators to estimate what college (Public) will cost in 15 years, it's pretty scary.
As others have said on this board, however, the rising cost of education at 3x inflation or more is probably a bubble and unsustainable.
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yellowfin 
Illinois Fan
Paige is Pretty
Member since May 2006
51746 posts
 Online
| re: How much to save for kids' college tuition? (Posted on 1/4/13 at 8:10 am to Chicken)
quote:
If the job market continues to be stagnant for college graduates, I am not sure how these tuition rates will continue to go up.
I don't see it happening either, the problem is all the easy money available from the government through loans and grants.
I fund a 529 plan for both of my kids plus my roth will also be available if needed
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TigerFanDan
LSU Fan
BFE
Member since Jul 2008
184 posts
| re: How much to save for kids' college tuition? (Posted on 1/4/13 at 7:33 pm to Chicken)
quote:
If the job market continues to be stagnant for college graduates, I am not sure how these tuition rates will continue to go up.
I'm afraid the tuition cost will escalate exponentially in the next 10 years. A great many students realize(eventually)and their parents that they are not suited for college, usually because they have no idea what they want to do for a living. They give up and the parents are out a whole lot of money.Therefore attendance will drop and cost will go up.
Go with a savings plan such as 529 to get the tax deduction, give them the lowest amount of money you can get by with(tuition,books and meal ticket)and tell them to get a job.They won't like it but it will make them appreciate that degree a little more when they get it, and they will be better prepared for the real world when they graduate. Worked for me anyway.
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makersmark1 
Auburn Fan
Member since Oct 2011
376 posts
| re: How much to save for kids' college tuition? (Posted on 1/4/13 at 7:48 pm to Chicken)
Save for your retirement first.
Teach them about money.
Focus on scholarship.
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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
63133 posts
| re: How much to save for kids' college tuition? (Posted on 1/4/13 at 7:55 pm to Chicken)
Chicken, when my kids were born I started putting $200/month for each one into a diversified equity mutual fund as soon as I got their social security number which took about 6 weeks to get after they were born.
By the time they reached college age they had enough to pay for their undergraduate tuition and room and board at LSU.
Fortunately, they also qualified for the TOPS scholarship which ended up covering their tuition plus a little for books and lab fees. So, they each had (have) a pretty nice fund still growing for them now.
This post was edited on 1/4 at 8:03 pm
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LSUStjames
LSU Fan
Dutchtown
Member since Dec 2005
2913 posts
| re: How much to save for kids' college tuition? (Posted on 1/4/13 at 8:59 pm to LSURussian)
I just recently went through this process with a FP. They had some calculator where you gave them the age/school and they projected total cost including room and board.
For my 3 year old, LSU would project at 180-220k total for 4 years, Stanford would project at 530k.
I'm putting 800 a month into both childrens 529 just in case they do make it to Stanford 
The beauty of it is any left over can be transferred to their children once they have them so if they go local, I'll end up paying my grandkids college as well.
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threeputt 
Notre Dame Fan
God's Country
Member since Sep 2008
18934 posts
Online
| re: How much to save for kids' college tuition? (Posted on 1/4/13 at 10:18 pm to LSUStjames)
I plan on putting 50k into an account as soon as my kid is born. If that is not enough in 18 years, screw em
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