<p>A couple of threads are talking about kids and how much parents are willing and able to spend on college educations. I do think that it is difficult for kids to know that mom and dad are going to retire or buy another house or drive fancy cars, but they don’t want to spend $55k for college. However, even people who are making fine incomes haven’t usually had that income since they graduated from college, and for some, it is a very recent bump. </p>
<p>So–where did the money go? What costs money that our college bound kids have no idea about?</p>
<p>I’ll start: We moved nine times in thirteen years. It was good for the person whose job was being reloacted, but tough for the second earner.</p>
Insurance takes a big bite; ditto home repairs (nothing fancy or showy - new roof, new windows, appliance replacement). We’ve been writing big college checks twice a year for almost 10 years, which doesn’t make the savings account look too good, either. As Gilda used to say, it’s always something.</p>
<p>House insurance (Florida–its redic)
car insurance times 4 (mine is a VW bug)
health insurance (self employed, EXPENSIVE.)
I won’t count the malpractice insurance. But it is why my income is already lower. </p>
<p>Taxes, taxes, taxes.<br>
Retirement account.
Being self employed, if I don’t contribute no one else does,
My “matching” is still my money.</p>
<p>In our case the exchange rate on the Canadian dollar, last year on the first semester we lost $1300 on the exchange, second semester we lost $900 and for this semester it looks like about $800. that adds real quick since the money we will likely lose over the 8 semesters would come close to paying for a semester. As we say though our D is lucky she is cute and worth it:)</p>
<p>Along with the household type expenses noted by posters above, we put LOTS of money into private club sports (including all of the ancillary costs of being in a sport), private music lessons and fees for participating in pre-professional music ensembles, OOS leadership/academic programs, and other EC’s that our kid’s have been involved in. </p>
<p>While we were happy to provide these opportunities for our kids, there is no denying that they can get very expensive.</p>
<p>$120K med school loans by the time repayment started in 1993
-70K net worth when finished training and started first job in 1993 at age 35
6 months off work (no income) for preterm labor with DD
Choosing to live in the mountain west where my income is 50% what I could make elsewhere</p>
<p>And like they say for all doctors: Big house, big cars, big vacations–still working at 70 to pay it all off. Heck, I figure I deserve all that, right? ;)</p>
<p>I will consider the 55K for DSs tuition as a big vacation for him. Hope he enjoys it.</p>
<p>And yes, I am also self-employed and pay all the above mentioned taxes and malpractice, etc, but you know what, it’s still better than 99%+ of the world.</p>
<p>I was a SAHM until youngest was in m.s. and after that worked p/t around their school schedule. It was our choice and we don’t regret it but did lesson the amt. of $$ available.</p>
<p>I am an equity partner at a law firm - so every “benefit” I have comes out of my pocket. Any money for retirement - even the 401K “matching” - is 100% funded by me. We have very high health insurance deductibles so the staff and associates can have lower deductibles. Yes, then there are taxes. After paying taxes and putting money away for retirement (and the college funds) our take home is pretty low. (We have relatives who are teachers who are convinced that we are “rich.” But when they retire, they will retire on pensions funded by the state [my dad’s state pension is 75% of his last take home pay (that’s why states are going broke)] and we’ll retire on what we’ve saved ourselves.</p>
<p>Medical bills. Not health insurance bills…the thousands that are left once insurance takes it’s bite. My kids are well aware and know the impact. I say this because if it’s not an issue for your family, a student can easily assume people get a cold or the flu…that’s about it. If you have a parent that has been unable to work for medical reasons, this can have a lasting impact.</p>
<p>The usual things- house, private school for 2 kids through 8th grade, marching band, dance ( crazy expensive!), child support for DH’s kids…</p>
<p>Then if I 'm being honest- there was the trip to Europe and several trips to Vegas, Orlando for Disney, Williamsburg, etc. We could afford it at the time, but if I had known what was coming in our lives I would have cut back on the traveling and banked more.</p>
<p>I don’t think I would have cut back on the travel. I think my kids have a confidence and self-assurance that they wouldn’t have if we hadn’t taken multiple trips to Europe and elsewhere (I reserve the right to change my mind if I’m eating dog food in my retirement years.)</p>
<p>Cars (need to be solid and well maintained for driving long distances on 2 lane hwys – we always pay cash and keep them many years, but they still need to be replaced)</p>
<p>D’s major EC (cost of training, driving to/from class, leotards, tights, pointe shoes, costumes and performance cost, flying/hotel/etc to Seattle for auditions for SI programs several times a winter, SI programs every summer for 10 yrs, local and national jazz competitions …)</p>
<p>Insurances (auto, home, medical (self insured w/ high deductible)</p>
<p>By far the biggest chunk has been TAXES, TAXES, TAXES</p>