<p>Thanks goalie dad. We are truely fortunate.</p>
<p>Same here allmusic.</p>
<p>Sax, don’t just take my word for it. Read for yourself:</p>
<p><a href=“College Board - SAT, AP, College Search and Admission Tools”>College Board - SAT, AP, College Search and Admission Tools;
<p>This report is chock full of interesting data.</p>
<p>A better way of looking at the situation is that the cost of college has risen steadily slightly ahead of inflation. But our incomes have not. That’s why the disconnect.</p>
<p>College is becoming either an upperclass only or heavy debt situation for most of the others. Saving is hard for most as most people use credit to purchase things to impress others. It is difficult to save, not impossible provided some choices are made to not attempt to keep up with the Jones family. </p>
<p>Being in the finanical services industry I find the other thing working against people is all the advice meisters out there yelling in absolutes about finanical products to what you should/shouldn’t ever own. Usually people apply this advice incorrectly to their situation. In saving for college I would first look at what types of savings aren’t required for FASFA or college aid. There are some. I won’t say because I am not solicting business here and there’s always somebody smarter than me in the room. It almost worst than talking politics.</p>
<p>newmassdad…yes, I thought it through and you are right about the disconnect. Thanks for the link.</p>
<p>Opie, I think saving is hard because we are just not making enough money. To heck with the Jones’s.</p>
<p>It’s all part of the 25 year trend of concentration of a larger and larger share of the nation’s wealth at the very top end of the economic scale, with the poor’s economic lot stagnating, and the middle class seeing an apparent but actually illusory small increase in income over that period as the cost of things which used to be subsidized with tax dollars has shifted to a fee base. If you note the chart on page 16 of the report newmassdad linked to, you’ll see that the percentage of family income required to pay the cost of a college education - public or private - has increased dramatically over that 25 year span for the middle class. And it’s a “hockey stick” curve, with the increase accelerating since 2000.</p>
<p>I know this is all “wonkish” stuff which doesn’t engage the public’s attention like stains on a blue dress, the need to remain in a constant state of fear over terrorists, and all the other wedge issues of the day - but is there really anything more important to the definition of the shape of the world our kids will inherit than the fact that the rich are getting richer, the poor are getting left further behind, and the middle class is getting bled white by the constant withdrawal of governmental support for basic public needs like education? </p>
<p>The report lays it out:
Note that all those increases are in "constant dollars" - that is, the increase is in addition to the effect of inflation.<br>
The income share figures are public, the cost of college figures are public; there’s really no mystery about the steady concentration of wealth upwards. The only mystery to me is why it’s routinely ignored, and the policies which feed it aren’t exposed for the “soak the middle class” hoax that they are.</p>
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<p>Opie, I’m a bit dense, but I’m not sure what you mean…Are you suggesting parents should find savings opportunities that won’t need to be reported on the FASA? Or am I misunderstanding you?</p>
<p>It is hard here too sax
COL has jumped alot- and wages havent kept up even though we have a pretty modest lifestyle- we live in a bluecollar/semi industrial neighborhood- which is still semi industrial, but single family homes are being torn down to make way for 1 bedroom condos that start at $500K</p>
<p>30 years ago, you might have been able to raise a family with just a high school education, but it is pert near impossible nowdays. But those families with just a high school education are now trying to figure out how to send their kids to college, so they won’t have to struggle as hard.</p>
<p>If you are very low income and on federal assistance, * and * happen to have brilliant kids- then you have choices- but for those who are just getting by- even without credit card debt- even instate public schools ( which aren’t appropriate for all kids) can be more debt than they can take on.</p>
<p>SS,</p>
<p>Yup, that’s what I’m saying. Planning ahead means looking at the big picture and how things work or what value they have in certain situationsm, even unintended. </p>
<p>But again, I don’t want to get into some sort of well… Suzzy O said this about that…, everybody is free to follow their own finanical guru advice and I’m not here to get in the middle of a debate over whose advice is better. </p>
<p>It’s sort of like when you look at your health insurance policy. Doesn’t it make sense to read the exclusions page? Find out what isn’t covered so you’ll know. The same could be said about FASFA. Read what counts and what doesn’t.</p>
<p>“Opie, I think saving is hard because we are just not making enough money. To heck with the Jones’s”</p>
<p>Sax,</p>
<p>No arguement here. I see it everyday. But we are better consumers than buyers of goods and services. We consume because we’re told to through advertising and we follow along. A buyer might actually wait and compare price,need and want. Consumers just buy because they think they should.</p>
<p>Well, that explains it, It’s that darn consumer I married!</p>
<p>If only I would have gone with that hunch on “Google” I’d be over in Sinners Alley now with my feet up catching a few winks before cocktail hour instead of being here in the trenches trying to figure out how it all got out of hand.</p>
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<p>Judging from the parents of college bound students that I’ve talked to recently at our local high school, I’d say that this figure is LOWWW! Many parents live in la-la land when it comes to how much merit aid little Johnny would be likely to get with good, but not stellar, grades and test scores.</p>
<p>newmassdad:
</p>
<p>If that’s true, then in Allmusic’s case, where she said her private school cost $3500 in 1976, why does that work out on an inflation calculator to be $12,016 in 2006? You certainly couldn’t attend a private school for anywhere near that today.</p>
<p>Excellent post Kluge.</p>
<p>Weenie, I think the significance of Newmassdad’s comment rests on two things: how you define “slightly” and the impact of those “slight” differentials repeated year after year over time. The study shows average annual increases of 4 - 5% above inflation over a period of decades. If you multiply Allmusic’s inflation adjusted $12,000+ times 250% (which is what you get with thirty years of inflation-adjusted 5% annual increases) you end up with a figure over $30,000 today. </p>
<p>While I understand that the “boiling frog” story is apparently scientifically invalid, it’s still a reasonable metaphor for the behavior of the American middle class. Constantly rising college tuition is a stark example of the consequences of mindlessly cutting taxes under all circumstances. Public school tuition has been rising at a faster pace than private college tuition, and the disparity is accelerating. The tuition rise started right around the same time as the “rising tide” of the economy stopped lifting all boats and the ratio of wealth between the wealthy and the poor and middle class started to change towards greater concentration of wealth and stratification of income - 1980. Dangle a $500 tax cut in front of the voters and most of them will ignore the fact that it’s going to cost the average Joe thousands of dollars in expenses for everyday needs down the road. I’ve watched that happen for years, and now that the water in the pot is bubbling I’m wondering when anyone else is going to notice how warm it’s gotten in here.</p>
<p>I feel the warmth Kluge. It’s kinda boiling in here, in fact.</p>
<p>kluge, your analysis is correct. The so called power of compounding means that a few percent per year, over 20 years is a big number.</p>
<p>Thanks, Opie. Time to get cracking. One piece of financial advice from my husband is worth sharing. “If I croak at home, you & the kids should drive me to the office & prop me up at my desk. Life insurance pays double for D O Job.”</p>
<p>My wife and I started saving $200 a week from when S was born and when he graduated HS in 2005, we had over $225K put away for college. It was hard at first, but after a while you don’t miss it. When he accepted an appointment to a Service Academy, it was like we won the lottery.</p>
<p>You saved $200 a week? LOL. I know that was our total income!!! You’ve all heard my spiel before - but, just in case you missed it, we were unable to save money for college due to having limited income in earlier years… we’re paying our EFC out-of-pocket now. I teach in a public school, hubby is a librarian, and we don’t make tons of money, but we get by. DD attends a good private school that meets 100% of need as determined by profile/fafsa. Our strategy? Go into the college years with no debt other than mortgage. Own your cars outright and make sure they will last through the college years as you will have no available money to replace them. Save thousands by not providing your kid a car. Delay kid getting license. Cut your own hair, don’t buy cosmetics, fancy clothes or most of the other stuff people waste money on. Don’t get cable TV, pedicures, dog grooming, yard and lawn service, gym memberships, etc. Take family driving vacations and stay with relatives. Eat at home.<br>
Most of the people on this website, (though I love you all dearly), seem to make/have heaps of money. I read about boarding schools that cost more than a year of university, cars for the kids, trips to Europe and special pre-college programs that cost… well, heaps. I’m sure there are ways some of you guys could cut back to help pay the cost of college. On our “modest” incomes we are paying the equivalent of in-state tuition at big U public costs.</p>