<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>
<p>We were fortunate to be able to do that. Waited to have a kid so the financial burden wasn’t as much. Congrats on what you have done. We did do most the things you are talking about. Especially cars, never have a car loan. Its transporation, not a status symbol. S took public transportation everywhere and he can’t have a car now anyway.</p>
<p>Anxiousmom,</p>
<p>Not all of us make those big bucks. Some of us can still earn several thousand more per year and still be in the 15% marginal tax bracket.</p>
<p>I do like your takes on expenses to avoid, although I will take issue with one expense that you criticize - boarding school.</p>
<p>For those of us lucky enough to have a child whose skills are desired by a good boarding school, the FA is adequate - although stretching us to our limits.</p>
<p>But the return on investment is far more than any college education in our experience so far. My D has been going to the top middle school in our county the last 3 years. Bored to sleep (literally) by the mind numbing worksheets passed out to pacify classes of 30 kids. Uninspired and undermotivated, but still an A student. Not learning much at all as the teachers are too busy maintaining order and making sure “no child gets left behind” (i.e. passes the state tests). I think the only thing that kept her motivated in life is another thing that doesn’t fall into your favorite spending category is hockey. </p>
<p>Hockey was a place where she could achieve and nobody set limits on that achievement. I took her places she would have never gone and played her against the best in the country at great expense to our family. She knew this and took our investment in her (that is what I call it) as a sign that somebody believed in her and put it all on the line, a critical thing in motivating a young child.</p>
<p>We’ve now transferred that hockey expense to boarding school (where she will continue her hockey), and she has stepped up (her first grades are coming in outstanding) big time, outworking everyone’s expectations. Our willingness to bet the house (next year will be HELOC time) on her, has given her the belief that she can achieve whatever she wants.</p>
<p>Travel Hockey Expenses last year… 20% of our AGI
Boarding School Expenses (after FA cost) this year… 25% of our AGI
A daughter who makes the most of her opportunities… Priceless!</p>
<p>Store brand ramen noodles for my dinner $.13 LOL</p>
<p>amen, anxiousmom! We make nickels cry around here. I’ll add, live in a falling apart house in a cheap neighborhood. Raise your veggies in the backyard. Avoid the new tech stuff (Ipod? what’s an Ipod?) Buy clothes at TArget. As income goes up, pretend it doesn’t. When it goes down, squeeze nickel harder. (The latter has been a real challenge for us this past year, but I love a challenge!)</p>
<p>I apologize for not finishing my post, and maying coming across as a little snooty sounding! CC was hosed up and I hit “post” so that I could see what I had written - (easier to edit that way) - and then, 5 minutes later, it was still stuck in the “posting” process - and I hit post again, waited 5 more minutes and, when it didn’t unstick I went to bed. I never had time to edit or add…
I understand that the cost of living is higher in different parts of the country and FAFSA/PROFILE may not take that into account…that some kids need more than the available public schools can offer…that for those of you earning enough money/having enough assets not to qualify for any financial aid, the full price of a Bowdoin, Yale etc. is very, very high…that some of you have businesses that are counted by Profile/FAFSA in an inflated manner, and that some of you have financial obligations that are not fully accounted for by financial aid calculators… so our “live lean” philosophy may not be enough to make college affordable for you. But the strategies can help. 
Here’s wishing all of you a prosperous and frugal life! ;)</p>
<p>Opiefrommaybury notes,“Saving is hard for most as most people use credit to purchase things to impress others. It is difficult to save”</p>
<p>Respone: Doesn’t it bother anyone that if you can save enough money by scriping, you will qualify for NO need based aid! Zilch! Nada! However, if you are a complete spendthrift, you can get all the aid that you want. There is something wrong in this issue. We need laws that will strongly encourage savings. Perhaps if we can get tax deductions for money put into a college savings plan, this might help solve the problem.</p>
<p>Respone: Doesn’t it bother anyone that if you can save enough money by scriping, you will qualify for NO need based aid! Zilch! Nada! However, if you are a complete spendthrift, you can get all the aid that you want
this isn’t quite accurate-
there is a limit on the percent of savings that are assumed to be available for tuition-
retirement accounts aren’t available
Income matters most
If your income is $700,000 but your expenses are $800,000
FAFSA is not going to reflect that
Schools * may* take into account if your expenses are to pay for a transplant for your 7 year old, but not if it is to cover the cost of taking the au pair to Banff.
You * are* at a disadvantage if this is the first year that you have made $700K and for the previous 20 years you made $70K
There doesn’t seem to be any place to indicate that
You are also at a disadvantage if you are self employed and your retirement accounts are in the guise of rental property &/or your business, as that will be assumed to be more liquid than they are.</p>
<p>Money placed in a childs name as with the UGTM account * does* get taxed at a lower rate- but then it is the childs money when they turn 18
I also have known people who have moved that money around after the child turned 14, with no penalty- so there isn’t a lot of oversight</p>
<p>There are some ways to save money for college still- besides taking advantage of the savings when filing federal taxes like the Hope Scholarship and the Lifetime Learning Credits</p>
<p>
<a href=“http://www.womenswallstreet.com/topics/topic.aspx?aid=878[/url]”>http://www.womenswallstreet.com/topics/topic.aspx?aid=878</a>
updated numbers for contributions
<a href=“http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/1158903025159970.xml&coll=7[/url]”>http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/1158903025159970.xml&coll=7</a></p>
<p>I believe they did away with the kiddie tax on UGMAs, and now even after 14, any money taken from such an account is taxed according to the parent’s income.</p>
<p>they did just change the law this past May that reduces benefits of saving in the childs name
<a href=“http://www.finaid.org/savings/childtaxes.phtml[/url]”>http://www.finaid.org/savings/childtaxes.phtml</a></p>
<p>i haev to agree with the boarding school issue… adn the limits within the fafsa form…</p>
<p>there is nowhere to to shwo that my parents spend a very large chunk of their income every year ensuring that me and my two siblings get a jewish education,a s well as “general” studies… 15kx 12(years) x 3( kids in my family)…,ka-ching… my parents adn i ahve a had a coupel tlaks already about college… i was told i am free to dream adn well see what happens( so i do know that going in)… but it s about prioritzing… education is one of my families biggest values…</p>
<p>booklet,</p>
<p>You might want to look more closely at the schools that use the other form (its been three years, and I’ve finally forgotten its name.)</p>
<p>I clearly recall a place for private school tuition for younger sibs.</p>
<p>Profile- does take into account private school tuition
however- it may be that colleges see that your family is able to afford 15K X 12 X 3, and reason that once the kids are no longer in K-12 but in college- it may take some convincing to get them to believe that they can’t keep coming up with the money, especially since college is often what families who scrimp otherwise are saving for.</p>
<p>emerald,</p>
<p>Ah yes, the Profile. Thanks for the reminder. Thank goodness, have not needed to fill it out since applying.</p>
<p>“Makes me think that middle schools could do well to educate parents during a Parents’ Night. The parents would at least have several years of warning.”</p>
<p>Has anyone had a middle school do this?</p>
<p>How about parents should not pay for college for their children, if they are 16 or 17 then possibly yes they are still a child.</p>
<p>if the child is 18+ the they need to be on their own, they are no longer your responsibility and no longer your financial responsibility.</p>
<p>By paying for your children’s education you are spoiling them even more than you already have. Even when they get a job they will have no idea what the value of a dolor is.</p>
<p>Both sets of my grandparents did the exact same thing, between the 2 sets there are 8 children, the day those children tuned 18 they were kicked out, and left to fend for themselves, Now the parents did a great job raising them, as they are all quite successful. They could handle themselves, they all put themselves though college. started businesses and 2 even became doctors, All with no help from their parents.</p>
<p>My mother did the same thing, and I’m doing just fine also, I work my ass of with a 55 hour work week and take 19 credit hours and still pull decent grades. By the way I’m studying to be an engineer. My mother thought me what money is worth, and I make the most out of it. I was never spoiled, I only just got what I needed and never what I didn’t need. I love my mother for this, and I think she did a phenomenal job.</p>
<p>Even thogh you want your children to do the best they can with the most resources possible, there is a line that needs to be set. If your child doesnt know the value of something, because they have never worked for it before, then they will always take it for granted.</p>
<p>Well, that’s works for your family, Vinnie. I’m glad.</p>
<p>It’s not the way I want my kids to go through college though.</p>
<p>Different strokes for different folks!</p>
<p>While I disagree with many aspects of the way you have expressed your opinion, Vinnie, I do agree with the basic thrust of your argument. I just think that in today’s world, 22 is the new 18. A college degree is pretty much the basic educational certificate to go into the job market with, much as a high school diploma was 30 years ago. That’s why my objective was to see each of my kids through college without their taking on debt. After that, I’m with you all the way!</p>
<p>I have no intention of supporting my adult children either.</p>
<p>However, I do plan to support them all the way through college, including paying their tuition. </p>
<p>I wouldn’t want my kids working 55 hours a week and trying to go to school at the same time. But if it works for you, and it sounds like it does, all the more power to you!</p>
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<p>My parents made sure that I got through college with a degree and no debt–and my H and I have worked and saved throughout the years to make that a reality for our Ds. Just paying back my parents for their sacrifice…</p>
<p>I am very impressed with anyone who puts himself through college while raising a family and/or working a full-time job. They are very special people! </p>
<p>We knew a man who worked his way without any help through college. He had 10 kids and told them that if he could do it, they could do it and refused to help the kids with college costs. None of the first 9 graduated from college. With kid #10, he relented and helped. #10 will probably be the only one to graduate from college.</p>
<p>I see that situation often when I come upon parents who won’t help pay for college–a substantial number of those kids don’t go to college, or go for a year and have to stop.</p>
<p>Yes, 22 is the new 18, and college is the new high school. Let’s not forget that, once college is done, many of the high-achieving students will seek graduate or professional degrees. While some are paid for via stipends, not all are; professional school is almost always paid for via loans. When you add together the cost of education for both undergraduate and graduate school, a single child can cost nearly a half-million dollars ($200,000 undergraduate; $200,000 for law or medicine, then add in interest on a loan). In most parts of the country, that’s a house. A nice house.</p>