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<p>I can only think of one FAFSA-only school that guarantees to meet full need. Nearly all will look at equity.</p>
<p>“I used to spend a lot more on clothes when I worked at a law firm.”</p>
<p>I thought you still worked at a law firm? </p>
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<p>My parents were full pay for their children’s education.
As an investor, I view my kids’ education as an investment; and as it turned out, a very good investment.</p>
<p>“If you don’t have much money, private school is a waste.” I agree completely, and my kids attend/attended private pre-K through college. Private school is an expendable luxury (with the exception of special needs kids who really benefit from a particular environment). I chose to spend my money on education because my kids received a few more opportunities and I had a little more visibility, which made my life easier. They would have done fine at public schools too. </p>
<p>My S at Harvard tells me that college as we know it will become a relic at some point in the future. He thinks the notion of taking a four year break and living together is pointless and a waste of time for the majority of people.</p>
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Yup. DS and fiancee’ are beginning to look at the possibility of buying a condo or very small, as in VERY small house, and the prices are ridiculous! Think extremely ridiculous, and then add a few zeros.</p>
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Agreed, agreed, agreed. Whose to say if things would have turned out as, thank heavens, fortunately as they have for our s’s, but I have no regrets on making their education a priority. Its our money, and we get to choose how to spend it. We are careful, but not misers. But we always live within or under our budget.</p>
<p>I just have to comment on the food budget. </p>
<p>I have a friend who spends $2000+/month on food for a family of four. I’ve gone food shopping with her. She shops at farmers markets and at Whole Foods. She ONLY buys organic, locally grown food – she is an absolute fanatic about that. Buying beef that comes from free range grass fed cows costs a lot of money. There is no compromise here – she would never consider buying anything else. So, yeah, that adds up.</p>
<p>Her family income is $200,000+. She complains all the time about how poor they are and that they are living paycheck to paycheck. It’s a good thing most of our conversations are on the phone so she can’t see my eyes rolling when she complains. </p>
<p>As for that hypothetical $400,000 income family spending $25,000 on vacations – I would imagine that when you stay at the top, 5-star hotels and eat at the top, 5-star restaurants, the Euros fly out the wallet. Yes you can save money with Airbnb, but most families that earn $400,000 are just not going that route. They probably spend in tips what I would pay for a hotel room. </p>
<p>Not necessarily. There are all types at all income levels – those who are smart about how they spend and those who aren’t. </p>
<p>I just heard about a family in our neighborhood - parents early 50s, 2 kids in high school. Father died unexpectedly and they didn’t have enough money to keep the house, so the bank foreclosed and mother moved to California with her children, to live with her parents. But guess what they always had in their driveway? Two Mercedes and a Hummer. </p>
<p>I fully believe when you drive down whatever constitutes a “nice” street in your area, a good chunk of those people are living above their means. </p>
<p>When we bought our house, the owner had a brand new Jaguar. Half of the closing consisted of checks being written out for back taxes. </p>
<p>^^^LOL, I’ve laughed at that commercial more than once. Very true, which ultimately isn’t that funny, but that commercial kind of puts a face to it.</p>
<p><a href=“https://screen.yahoo.com/dont-buy-stuff-000000884.html”>https://screen.yahoo.com/dont-buy-stuff-000000884.html</a></p>
<p>I am currently bailing out a family member who ran up over $60k in credit card debt – not related to medical / health issues, just pure discretionary spending – so this touches a raw nerve w me! </p>
<p>Sue22, great link. I kept getting distracted by that guy’s dimples, though. I’m a sucker for dimples…</p>
<p>How much of an effect do parents’ high spending habits have on the kids’ future attitudes toward money? I.e. do the kids tend to see luxuries as necessities, and tend to fixate on expensive things (including expensive colleges)? Does their expectation of a high spending lifestyle mean that they cannot afford to head down lower paying career paths that people with more frugal lifestyles can go into without being poor?</p>
<p>“Car payments - yes, we have two cars we bought new, that’s about $1000 per month” - Ouch. I suspect that is pretty common these days. </p>
<p>We were fortunate enough to have 2 good incomes before the kids and only took loans for our first cars out of college. Although interest rates are now lower, we will encourage our kids to strive to do the same. (That might not be possible for them, but it’s a good goal). </p>
<p>“How much of an effect do parents’ high spending habits have on the kids’ future attitudes toward money? I.e. do the kids tend to see luxuries as necessities, and tend to fixate on expensive things (including expensive colleges)?”</p>
<p>My parents spent like money was going out of style, and I am much more frugal. I like nice things (who doesn’t?) but they aren’t my identity. </p>
<p>And to me, college is an investment. Not an “expensive goodie.” That’s precisely why we’ve lived beneath our means, etc for so many years - because to us, college is an item worth spending on. </p>
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<p>You bought Ted Beneke’s house?</p>
<p>I grew up in a family where we leased new, luxury cars every year. (I drove a hand-me-down Olds Cutlass in high school - by the time my sister was driving, she had a Porsche. No joke. It was insane.) I seriously thought that was normal until I met H and learned about the concept of buying a car and driving it for years, which is what we do. I had an Audi as my college graduation gift, and when it bit the dust I bought a Honda Civic, which still got me back and forth to work just fine. </p>
<p>There’s a guy who parks his 20 year old rusty truck near mine at work. It looks like one of those old clunkers that some people around here have with the license plates that say “for farm use only” – but his still runs, apparently, since he drives it to work every day. (We have assigned parking spaces so I’ve been looking at that truck parked across from mine for ten years.) I have mentally decided that I am not replacing the mini-van until he replaces the truck. He’s my inspiration!</p>
<p>My parents always lived well within their means. Maybe it was their Depression-era upbringing. My mom came from an old-money East Coast family and my dad came from a working-class family in London, but they shared a sense of frugality and modesty. We lived in regular homes in good but not fancy neighborhoods. They bought cheap cars that they drove into the ground. We traveled a lot, but my dad worked in the airline industry so we could fly free anywhere in the world (and first class…those were the days). My mom probably spent a fair amount on food–she was a great cook. She was also an amazing sale shopper and taught me and my sister well.</p>
<p>I think my parents’ attitudes toward money have informed mine to some degree. I am not particularly status-conscious, but I have things that are important to me (one being solid home construction–I will not live in a cheaply built house). My son never had a car in high school. My daughter does, but she paid for it herself with earnings from her part-time job. Our two vehicles have 111,000 and 176,000 miles on them.</p>
<p>Neither of my kids would ask to go to an expensive college just for the sake of it. They know they can be happy in a lot of different environments and have focused on outcomes for graduates when researching schools. My son sought out merit scholarships and did very well. My daughter will likely attend a public university or a Catholic school on a tuition exchange she is eligible for. She plans to be more successful financially than either of her parents. None of us have any doubt that she will succeed.</p>