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Started By
Message
How much to save for kids' college tuition?
Posted on 1/3/13 at 1:30 pm
Posted on 1/3/13 at 1:30 pm
I have two young kids and have put aside some money for their college, but interested to know how others are addressing their kids' college education.
I have read that some parents save 1/3 of projected college costs, pay 1/3 as the kids go through college and the final 1/3 comes from loans/aid.
Obviously, saving 100% of college costs would be ideal, but you definitely want to fund your own retirement first since kids can always take out loans for college.
College tuition is out of control and will only get worse. I can't imagine having to save for private college tuition.
I have read that some parents save 1/3 of projected college costs, pay 1/3 as the kids go through college and the final 1/3 comes from loans/aid.
Obviously, saving 100% of college costs would be ideal, but you definitely want to fund your own retirement first since kids can always take out loans for college.
College tuition is out of control and will only get worse. I can't imagine having to save for private college tuition.
12
Posted on 1/3/13 at 1:46 pm to Chicken
529 Plans.
LINK
How old are the kids? If in their teens, get them involved in the college process early. It wouldn't be a bad idea to briefly look into costs and show them that it is possible to get all expenses paid through savings and scholarships and leave college debt free.
LINK
How old are the kids? If in their teens, get them involved in the college process early. It wouldn't be a bad idea to briefly look into costs and show them that it is possible to get all expenses paid through savings and scholarships and leave college debt free.
Posted on 1/3/13 at 1:50 pm to Chicken
quote:
I have read that some parents save 1/3 of projected college costs, pay 1/3 as the kids go through college and the final 1/3 comes from loans/aid.
I'm pushing both of my kids to do well in school. Although she's only in 2nd grad my daughter has had straight A's since she becoming school age. My son will start school next year. I'm hoping that both will do well enough to get an academic scholarship somewhere. There's enough financial aid out there for parents not to pay the full ride. So, we will stay on them to do well in school.
Whatever I have saved at the point they start college is what they will have. There's no way I can save the entire project costs of a 4 year college education. They should be able to go to college debt free through what I have saved up to that point and with scholarships given that they perform well in school. If they don't perform well in school, they will have to get a job and help foot the bill.
This post was edited on 1/3/13 at 1:59 pm
Posted on 1/3/13 at 2:01 pm to Chicken
quote:
I have read that some parents save 1/3 of projected college costs, pay 1/3 as the kids go through college and the final 1/3 comes from loans/aid.
Sounds like an excellent idea. My parents didn't have a dime for me. I don't know if I would have joined the Guard if they did.
Looking back, extremely happy they didn't have anything for me as they were getting out of extreme debt themselves. I never would have met my wife and I like knowing I figured out a way to get school paid.
I plan on having children hopefully starting this year and will do best. I've already looked on a few sites and 4 years at Arkansas in 18 years is projected to cost right at 100k with everything included.
Posted on 1/3/13 at 2:03 pm to polizei11
quote:
529 Plans
Best option. Funnel in a set amount each month and add whatever birthday and Christmas type money you pick up along the way.
Take a stiff shot of bourbon before you run the expected college costs on one of those online calculators, especially if your children are young. It will make you cry.
Posted on 1/3/13 at 2:05 pm to poule deau
quote:
Take a stiff shot of bourbon before you run the expected college costs on one of those online calculators, especially if your children are young. It will make you cry.
This.
Posted on 1/3/13 at 2:14 pm to Chicken
I do $100 a month each for my two kids.
One is 3 one is 1.
Did a 529 through state farm.
If something happens and they dont use the money it can be treated like an IRA.
One is 3 one is 1.
Did a 529 through state farm.
If something happens and they dont use the money it can be treated like an IRA.
Posted on 1/3/13 at 2:31 pm to Chicken
quote:
How much to save for kids' college tuition?
None. Tell them to get a job now and join the Army after HS. Pussy kids are enabled by shitty parents.
Posted on 1/3/13 at 2:46 pm to Cold Pizza
quote:
None. Tell them to get a job now and join the Army after HS. Pussy kids are enabled by shitty parents.
While I agree, I may try and hide I'm saving anything for them.
Posted on 1/3/13 at 2:56 pm to wegotdatwood
quote:
4 years at Arkansas in 18 years is projected to cost right at 100k
That's wild. I'm assuming that was in-state tuition?
I had tops @ LSU, but I would estimate when I went from 01-05 it would have costs me about $35k living at home like I did.
Posted on 1/3/13 at 3:10 pm to polizei11
quote:
529 Plans
How easy is it to get your money out if your child gets a scholarship or something?
Posted on 1/3/13 at 3:12 pm to rmc
quote:
That's wild. I'm assuming that was in-state tuition?
Yep. Private or anywhere else was between 200k and 400k iirc.
There is a huge school bubble so maybe it might burst?
Posted on 1/3/13 at 3:12 pm to rmc
I'm dumbfounded on the notion of why college cost so damn much? To me there's absolutely no reason for college, especially to a public institution, should be that damn expensive.
Posted on 1/3/13 at 3:14 pm to Hammond Tiger Fan
quote:
I'm dumbfounded on the notion of why college cost so damn much?
To fund the science research arm of the university system. State institutions would rather minimize the costs to the taxpayers because a) most have removed themselves from the function of serving the state in an effort to become internationally renowned research institutions and b) easily accessible student loans have flooded the system with money.
Posted on 1/3/13 at 3:20 pm to Hammond Tiger Fan
quote:
I'm dumbfounded on the notion of why college cost so damn much?
Not sure to be honest. I feel pretty fortunate to get a degree @ LSU for basically living expenses (minus rent -- I had my sugar momma pay for that).
I figured if I have between 35-40k kicked back for my kid when he goes off to college that he will be in a good position. He seems to be pretty smart -- a good bit smarter than me at least. I only have the one, and with things the way they are now, I probably will only have the one. I'm not sure what people do with 4-5 kids with college aspirations. Might have to have tough talks with the ones who don't need to go.
Posted on 1/3/13 at 3:54 pm to TxTiger82
quote:there are some conditions in which you can get your 529 money back without penalty (eg, kid dies or becomes disabled, gets a scholarship or decides not to go to college.). Otherwise, if you pull the money out for non-college tuition purposes, you pay taxes on the investment gains plus a 10% penalty.
How easy is it to get your money out if your child gets a scholarship or something?
I think you can assign other children or grandchildren to be beneficiaries if it doesn't work out for one child, but not sure...I haven't opened a 529 yet...just done some cursory research.
If the job market continues to be stagnant for college graduates, I am not sure how these tuition rates will continue to go up.
Posted on 1/3/13 at 3:57 pm to rmc
I've got about $12k saved for each. They are 10 and 12. Last time I checked, I believe the statement I got from Louisiana START said that if I continue to save at my current rate, if the kids go to LSU, I would be about $47k short. I just laughed
Posted on 1/3/13 at 3:58 pm to Chicken
I would recommend zero. That's how much my folks saved for me. Great motivation. Got a full ride to Centenary which in today's money is worth about 40K per year.
Meritocracy. It's a wonderful thing.
Meritocracy. It's a wonderful thing.
This post was edited on 1/3/13 at 4:10 pm
Posted on 1/3/13 at 4:03 pm to TxTiger82
quote:
I'm dumbfounded on the notion of why college cost so damn much?
To fund the science research arm of the university system. State institutions would rather minimize the costs to the taxpayers because a) most have removed themselves from the function of serving the state in an effort to become internationally renowned research institutions and b) easily accessible student loans have flooded the system with money.
that and administrative costs.
LINK /
Administrative costs 60%+ increase in the cost of tuition from 1993-07.
Its ridiculous.
Posted on 1/3/13 at 4:13 pm to buddhavista
My gf went to a private college in the NE and at graduation they called out the number it cost for all of the graduates(or their parents) to get there.
$282,000
$282,000
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