<p>We had a $76,000 college fund set aside our ds when he graduated from hs and it was easy peasy. When he was born my mom gifted him $7500 which we invested in a zero coupon bond and we bought our second house at the same time. We took $7500(?) from the proceeds of the first house sale and invested it in a growth stock mutual fund. We never had to set aside another dime for his college fund.</p>
<p>The greatest benefit to having a sizeable college fund was the freedom it gave him in selecting colleges to apply to. And it eliminated any anxiety for us in paying that semester bill. BTW, he was responsible for tuition/fees/books/spending $ and we were responsible for room, board, insurances, travel, etc.</p>
<p>Because of the merit scholarship he recieved he graduated with about $30k remaining in his college fund!!!</p>
<p>I have little sympathy for many parents who complain about college expenses while they failed in their obligation to plan ahead, opting instead to spend beyond their means. This does not include families who have had to face unplanned medical/employment misfortune or families who just struggle to make end meet and live frugally.</p>
<p>^^^
I’m glad you added that last sentence. One of our other children was diagnosed with a serious illness 8 years ago, which threw our finances for a loop. I had to quit my job in order to care for her, and we lost income that we had always counted on. I’m happy to report that she is in remission and I have gone back to work (albeit, not making what I used to). But this time in our lives has had a permanent effect on all of us, and not just financially…</p>
<p>Saved, saved and saved. D still got financial aid by way of merit scholarships. She graduated in Dec 08 without a penny of debt. Besides her education, a debt free life is the best gift we could have given her. (musicians have a tough life as it is!)</p>
<p>Yes, glad you added the last sentence! We never “struggled” with frugality, but we certainly “embraced” it. (Thanks, Tightwadder’s Gazette, for teaching us about frugality! :)) Although we didn’t save for college owing from the fact that we needed that money to live on, we pay our full EFC, which is much higher now that our income has jumped. MOST of what is expected for college costs comes from current income, so we don’t have the cushion that those of you who had the means to save, do. Luckily, we went into the whole college years with no debts other than mortgage, and two fully-paid-for vehicles. We also don’t pay for things that many of you consider necessary; for instance, neither of my kids have cars and they are still covered for driving at no charge, we don’t pay for TV, etc…</p>
<p>my income nearly doubled in the past 10 years. ALL my saving was done then. I read about people redoing their kitchens and bathrooms when their kids are in college and I MARVEL at that. I am going to get a new roof soon and may get a new heater/ac to take advantage of tax credit and other rebates (current stuff is 20+ years old). I am tired of having my hands be cold all the time (keep house at 64 in winter). I tried wearing gloves in the house, but that is just too weird (and hard to type)</p>
<p>I also laughed when people say they keep their car for 10 years. Heck I don’t even buy the car until it’s 7-10 years old!</p>
<p>Paying full price! We saved and did not live in the McMansion–started saving as soon as our student was born; spouse was much more insistent about it than I was (part of that Ivy League expensive education that spouse obtained in the 70’s that spouse’s parents paid full price for!), so insistent thru the years that I often got tired of hearing about it. Then as student had the freedom to choose a college, of course, financial aid rolls into the picture as it is so much more prevalent than it was 30 years ago. $0 dollars for financial aid–student offered loans, but I just don’t consider that financial aid. The other interesting part of financial aid that has disappeared was finding out that true merit aid does not exist at all colleges–many (privates mainly) tie that merit aid to financial need. That was an eye-opener! Bottom line is we’ve managed to pay the full price, thank goodness, as we have watched others spend, spend, spend. The interesting thing is that 30 years ago when we were looking at colleges, our parents would have never used financial aid as a way to fund our college education–if they couldn’t afford the tuition at X college, then we had to find one that they could afford. Finances played a huge role in the decision-making of college. It now seems to have come full-circle with the economy in the skids for today’s students. I am just glad that we only have one more year to go for that full-price tuition for our student. I try not to dwell on how others are paying/not paying. Just grateful at this point that we were wise enough to save and could offer our child a college education-debt-free! And in one short year, I guess we will feel a monetary gain in income, that is if taxes don’t claim it first!</p>
<p>When our kids were born, we weren’t in a position to really “save” all that much…we were still trying to get on our feet. Thru the years, we never really were (are) great savers…but, we are good at getting things done. We have 2 graduating in May, and we paid for everything…including cars, insurance, spending money etc. My parents have both helped as well, but donating to our family “bailout” plan…lol. They each send both kids a fixed amount of money each month, for expenses. It hasn’t been easy for us, we cut back on things…but not to the point of being painful. </p>
<p>I feel lucky that we were able to provide the kids first 4 yrs of college. I know it is not possible for everyone to do that…and no one should feel guilty if they can’t. I am so impressed with SueinPhilly…I think she’s a single mom, but even if not…she has done everything in her power to provide an education…she’s given up some things to make life better for her child. That’s something to be so proud of…and I’m sure her child knows just how much she’s done. She is the type of parent that I think shows us all how important educating our kids is…in the end, the sacrifices are definitely worth it!! </p>
<p>I guess we don’t all have the luxury of saving money for 1, 2 or 3 college educations. It would be awesome if we did it, lol…we’d be sitting in Mexico or Antigua…enjoying retirement…but for now:) Stuck in NJ a while longer, lol.</p>
<p>'The little savings we have for my son’s college happens to be in his name. Is it too late to move it now? He is a junior! '</p>
<p>Ready to roll, no it is not too late. We did work on depleting the UGMA accounts late in the game. Just make sure you can demonstrate the receipts ‘for the benefit of the child’. We paid ourselves back for SAT prep, Soccer Tournament fees and travel, College visit trips, all music lessons, contact lenses…all things to benefit the child. There was nothing left in their names for FA offices to consider.</p>
<p>Lucky here- translated our brains into good paying jobs and don’t spend at our means so the money piles up (until the investments tank). Meet and marry late, only one kid who only applied to 2 elite private schools and ends up at state U. Life isn’t fair- we could have paid for any school and don’t have to, I worked and used merit scholarships to get through undergrad at public U, loans for MD. My big words of wisdom are to not scrimp too much in college- buy those books et al, because you benefit and will have the money to pay off the additional small loan amounts later (notice the word scrimp- we’re not talking iphones or other luxuries here). We raised a kid who doesn’t spend money- doesn’t go for the more expensive version even with encouragement. But he does buy a new hardcover fiction book instead of getting it from the library sometimes.</p>
<p>Saved and invested and paid full freight for 2 privates. Daughter is at grad school on her dime. She’s taken out large loans but fortunately has a good job waiting for her when she graduates next month. Son has a well paid job and is frugal, saving half of his take-home pay every month and maxing out his retirement account.</p>
This is the perfect time to transfer student-owned funds into a custodial 529, also known as a UGMA/529. The funds remain in the student’s name but are assessed at the parent rate for FAFSA (5.6%) rather than the child rate (20%).</p>
<p>we may not have “saved” but, I am starting to feel like we havent done badly by our kids eiether! They have no undergrad debt…daughter has a job waiting for her upon graduation (confirmed at 3rd interview yesterday)…Son is off to grad school on “his dime”…but it is not going to be burdensome by any stretch of the imagination. He can even take out extra loans to cover living expenses…JUST in case he can’t earn enough to do that…</p>
<p>I love hearing from people who have money in lots of accounts…lol. I’d never know how to handle that…neither would dh. We’ve had enough to have a nice life…not extravagant, but the kids had dinner with both parents every night…lol:) it was a rule! invite friends if you must, but…everyone eats dinner at home!! does that count? I actually think that was a very valuable asset we gave to our kids. They could be mad at us, bickering with one another…etc…but, we all sat down every evening and ate dinner…I think it mattered:) they love to come home to this day for dinner, lol!!</p>
<p>Adding to Edad’s post (near the start of this thread)…move to the state where you want your kids to go to the flagship U at instate costs. For example…move to NC if you are aspiring for UNC-Chapel Hill, move to VA if you want WM/UVA (or any of the other great instate U’s in VA), move to CA if you want instate tuition for the UCs, move to Michigan for instate at U of Michigan. You get the point…OH…and make that move when your child is a junior in high school…or sooner.</p>
<p>Yes, I saved for S’s college expenses, and when exH and I divorced, forewent the child support in lieu of his depositing what it would have been into a 529 plan that he controls, to make sure there was some money from him for college, too.</p>
<p>S is a HS sophomore; I was going to move the 529 funds from equities into a less volatile option this school year. Yeah, the funds got hit pretty hard. He’s entering college earlier than I had anticipated (this fall rather than two years from now). In addition to the 529 I have for him, I also have some EE savings bonds and a mutual fund (yeah, the mutual fund got hit, too! That was something else that tanked before the expected move.) for his college expenses. I also have some cash, which is what will be used for his tuition next year. ExH is also contributing out of cash. S will be taking subsidized loans, as we want him to be responsible for some of his college expenses. He’ll also have a work study job on campus for his running around cash and books, though we’ll pay for his books this first year, I think.</p>
<p>I figure we’re okay for two years at the expensive private; S may have to transfer to a less expensive option after that. He expected to transfer after two years anyway, and I’m hoping that by then, he’s matured enough to understand that State Flagship U is quite okay for the fields in which he is currently interested!</p>
<p>Started saving when D was born (literally). Now it looks as if we’ll have plenty saved for D’s tuition/room/board/books etc. with some merit aid (and no loans! Yay!) It helps that we just have one child and that H and I are pretty stingy/thrifty: original (small) house with a mortgage payment that’s now less than a car payment and very few costly vices.</p>
<p>Two years ago I unexpectedly lost my high-paying job, and my current job pays about 40% of what I used to make. Thank God for that college savings account! Knowing that college was “paid for” brought me so much peace of mind.</p>
<p>Saved, lived frugally, invested aggressively in the stock market and luckily managed to avoid losses in the 2000 crash. Minimal losses ~(5%) in the 2008 crash. We have enough saved for two kids at privates but our son is at a public and our daughter is in CC via dual-enrollment. We can pay for her out of current income. Son had major health problems in his junior and senior year and we didn’t know if he was going to attend anywhere. He got better in the winter of his senior year but we missed the deadlines and he just chose to enroll as a transfer student so no real merit money was available. We have a bunch saved up in savings bonds that we haven’t touched because they’re paying about 4% and we really don’t need them. Most of the other stuff was common stocks. We mainly did mutual funds in the 1990s and then moved up to stocks after the crash in 2000. Still doing mutual funds from time to time, etfs and common stocks (both short and long).</p>
<p>My wife never worked outside the home after we got married and we live frugally (one old car, a very small and inexpensive house, sleep on the floor, no debt at all).</p>
<p>i respect and understand those parents who sacrifice for the kids education. But isn’t there a limit to how much we should sacrifice? I get how if we can, we should be putting $ into the kids future education…but, what about how we are living day to day? What about spending money for private lessons, tutors, summer camps…etc. That stuff adds up very quickly!! So we spend our hard earned $ on the enhancement programs…(and not all of us, are able to save after our expenses)…sooo…now the kids are where we hoped they would be…in freshman year of the colleges of thier choice. We have sacrificed to get them here…do we regret it? no…did we sacrifice more then we could do for the kids…I don’t think so.</p>
<p>eh…I am beginning to think this is the haves and have nots…lol…and we are right smack in the middle!! we have…but we don’t…and no for lack of working hard</p>
<p>At birth we started making payments into our state’s prepaid college program, paying the cost of the tuiition then, with the idea it would cover full cost of tuition at the time of college matriculation. A few years later we added the “local fee” plan and the first year of a dorm contract. We chose the 5 year payment plan, but you could pay over 15 years at as little as $50/mos. At about age 10 we opened two 529 accounts, but have funded more for our first than our second, as we can roll over what D1 does not use into D2’s. D1 is a freshman at flagship state U with merit aid, and the prepaid money left over has been used for board, books, and living expenses. Next year it will cover the cost of her room. It looks like we may be able to hold off and use the 529 money for grad school. D2 is dual enrolled at our regional state college, and will have her AA when she graduates from high school in a year. Currently 3rd in her class, she will most likely finish 2 more years with merit aid and prepaid money at state flagship U, with 2 years of unused prepaid tuition that can be used toward grad school (it will cover undergrad tuition per credit hour and we will make up the difference between undergrad and grad fees.)</p>
<p>We would have never been eligible for much financial aid, so we tried to prepare, and were fortunate that our girls earned merit aid, and are more interested in the atmosphere of state U over LAC.</p>
<p>I was the beneficiary of merit and financial aid when, as the FTIC oldest of 4 kids, I went to a LAC. I worked hard, used that education as a prelim to go to on to get a professional degree. I really though I would send my girls to a LAC as well, but had honestly NOT saved enough to cover 4 years for two. But, as it turns out, they are not interested in a LAC over flagship state U.</p>
<p>The one interesting thing about people is that they are able to adjust to a particular lifestyle whether it be higher or lower. If there is the expectation of improvement in the future, even very modest, then one can be happy. Back in the 70s, there was pervasive doom and gloom, people lived more simply because they didn’t have a choice. Cars were kept for longer periods of times, people lived in smaller houses, there was widespread concern with saving energy, etc. Many didn’t save because of inflation.</p>
<p>Every household has to make decisions on the mix of spending and private lessons, tutors, summer camps all falls into that. Remember that most people in the world do not have these options. Perhaps most in the US don’t have these options.</p>
<p>We make a choice to have kids or at least the choice that leads to having kids and it’s only responsible to do the best that we can to raise them in a financially responsible way. One can depend on the kindness or business plans of others but that can lead to some big disappointments down the road.</p>