<p>Hi, I don’t know if I’m posting this in the right forum or not. I’ve lurked here on this site but I wasn’t sure if this was the proper place for it. If this thread needs to be moved I understand. But I was hoping that I could get some money saving tips for my children’s education. I don’t have any children currently, but I already know that when I do have them, Education is going to be very important to me and my (currently future) husband. And unless we move to a place that has better public schools our children are going to be in Private/prep schools from Kindergarten on up.</p>
<p>I’m already saving some money by buying used (craigslist or thrift stores) or getting free through Freecycle, buying what’s on sale at the grocery store. I’m just wondering if there’s anything that I’ve missed/haven’t thought of.</p>
<p>I thought the parents here might have some ideas since prep and boarding schools cost so much. Thanks in advance for the tips!</p>
<p>Number one: do everything in your power to avoid debt. Google “live debt free” and you’ll find all kinds of articles that address this philosophy in depth. Be sure and also read the articles you’ll find that mention downsides to this approach, such as the need to establish a credit history. If you have the discipline to have a credit card and pay the balance in full every month, that’s one way to establish a credit history while not accumulating consumer debt.</p>
<p>You would probably find it difficult to save enough through spending controls. Have you considered “enforced savings” by paying into your education fund straight off the top of your paycheck? Make a budget to distinguish mortgage, taxes, utilities, etc., from your discretionary spending, then decide how much you can afford to save. Further divide this amount into what you will need in for kindergarten/elementary, and what is for high school/college. The first portion needs to be saved, but you can invest (take risks with) the latter portion, using a low-cost organization like Vanguard for some combination of stock and bond mutual funds, or a 529 plan. </p>
<p>Do not take risk with the savings you will need in six or so years; see
<a href=“How to Get Better Interest Rates for Saving Money - The New York Times”>How to Get Better Interest Rates for Saving Money - The New York Times;
<p>Research your local day schools to see how strong their financial aid programs are, as this would affect the mix of money you devote to savings (short term) vs. investment (long term). Unless you expect some windfall, enforced savings is just about the only way to accumulate the large sums needed for private education. Keep looking for good sources to read about education and personal finance. Bill Murray’s character Bob said, “Baby steps!” . . . day by day you will make progress.</p>
<p>Thank you for the tip Mountainhiker! I appreciate it.</p>
<p>And Charger78, because apparently even though I typed your username in, it didn’t take when I posted a moment ago.</p>
<p>Perhaps you should just decide that your career will be focused on making money. Instead of trying to be the best math teacher or ornithologist or welder or what ever, decide that you will focus your energy and goal on becomming wealthy. </p>
<p>This does not have to mean the currently hated "fat cats’ or “1%” stereotypes who are portrayed as focused on wanting to be rich for what are ignoble reasons, and taking advantage of others to do so. Many of the wealthiest people I know care about making money for the freedom it brings, for the ability to send kids to whatever school they can get into, for the ability to help others and give back. They are not focused on the greed, avarice and gluttony, or the desire for things or others to know about how much they have made.</p>
<p>If it is your desire to be able to give your children the gift of an education, that is, to me, a fine reason to focus on earning money rather than some other pursuit. </p>
<p>I own a business and have employees who i treat very well. I do not take advantage of anyone in business and deliver a valuable product people are willing to pay for. I really like what my business does, but it is also a means to giving me and my family freedom and choice and opportunity.</p>
<p>It partially, for you, comes down to what do you want to focus on. Sometimes you can’t say I want to be a great teacher or ornithologist or welder and still expect to have the financial ability to send my kids to expensive private schools. </p>
<p>It is good to think about when you are young, as you are doing, because some of the repercussions pf decisions you make now are long term. Finally, if as you say, you will have to assume that you are paying for school starting at kindergarten you need to think about generating sufficient annual income for this expense. It would be hard to save enough in terms of assets to pay for 13 years of primary school and presumably 4 years of college.</p>
<p>Thank you for the tips! My fiance and I had the idea for us to live off of one of our salaries for as long as we can, and we’ll just deposit the other one into savings. It’ll be a bit of an adjustment as we’re used to living off of 2, but basically we’ll be giving up all the “extra’s” extra date nights, meals out etc. We could actually live fairly comfortably off of just one salary.</p>
<p>Thank you all again for the tips given so far!</p>
<p>Sounds cool – in fact, quite fortunate. And I would put in a further two cents that as much as you care about education, you still need to use the magic of compound interest to help you to save for retirement, starting even now, especially, while you are still young. AND, as if all this was not enough, the pros say you need a six-month emergency fund (to cover all necessary expenses for six months). </p>
<p>Lots of the parents on this CC forum believe that paying out for earlier ed instead of saving exclusively for college is a valid approach.</p>
<p>Those are very good ideas Charger! Thank you for giving them to me.</p>
<p>One thing to think about: Money saved in a child’s name is tapped at a higher percentage during FA reviews than money saved in a parent’s name. So start a small fund for the child, but keep most of the money in your name since even the FAFSA formula (for colleges) has some degree of asset protection built in (i.e. they don’t expect you to spend 100% of your savings to fund school). Living frugally and automatic payroll deductions into a savings account separate from our household account has been the key for us funding two children. </p>
<p>Good luck.</p>
<p>Thank you for telling me that ExieMITAlum, I didn’t know that about funds saved in a child’s name. That will help us as we save up for the funds.</p>