Disadvantage of kid #1

mom2collegekids
Fri, 20 Apr 2012 13:59:15 +0000

*> So, then you’d be paying $60k per year…not $30k.

Yes I realize that. What I am saying is that absolute most that we (the parents) can afford per kid is $120K for all years of college. It greatly affects kid #1’s college decision if the total cost of college is $200K (450) or $160K (250 + 230).

First of all, this only works out if BOTH kids get into “full need met” schools AND they use a similar formula.

Also, as soon as #1 child graduates, then the cost for #2 child’s tuition will go up to full price (and at that point you’ll have one less person to count in the household).

$120k per kid means $30k per year. A total budget of $240k for your kids.

So, if your kids are spaced 2 years apart (as you mentioned), this might be your situation.

year 1 $50k
year 2 $50k
year 3 $60k
year 4 $60k
year 5 $55k (at least!)

year 6 $55k (at least!)

$330k ($90k over budget)

I think you’ve forgotten that Child #2’s costs will go up once Child #1 graduates.

If Child #1’s school promises to meet need, then you will get more money when #2 enrolls.