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Parents: How are you saving for your child's College Education
- Thread starter Zombie
- Start date
Demon-Xanth
Lifer
I have my kid make hamburgers every weekend. I'm doing the best to make sure he has a stable and secure future.
...I kid, I kid... I no kids... 😀
My parents covered me while in school and then I paid off the loans when I left school. Depending on the age of the kid you might look into a long term mutual fund or CD. A standard savings account really isn't good for investing.
...I kid, I kid... I no kids... 😀
My parents covered me while in school and then I paid off the loans when I left school. Depending on the age of the kid you might look into a long term mutual fund or CD. A standard savings account really isn't good for investing.
FoBoT
No Lifer
child of wonder
Diamond Member
My wife and I really won't be able to save much for our kids until after my wife gets her AAS degree. That's about 3.5 years down the road (she'll be starting in 2009 when both our kids are in school).
Our plan was to put $100 per month for each child into savings and then they each get the money when they turn 18. It would end up where each child would get about $15,000 for school when they turn 18. In today's money that would be $9,700. So really that would only be enough for 2 years of State University. 😛
When I graduated from high school 10 years ago my parents gave me $6,000.
Our plan was to put $100 per month for each child into savings and then they each get the money when they turn 18. It would end up where each child would get about $15,000 for school when they turn 18. In today's money that would be $9,700. So really that would only be enough for 2 years of State University. 😛
When I graduated from high school 10 years ago my parents gave me $6,000.
slag
Lifer
Im not. I paid my way through school and so will my kids. If they really want to further their education, they will do well enough in high school to get grants and low interest loans.
I'll help out with their books and car insurance but i'm not planning on paying their way through school. Once they are 18, they are on their own.
I'll help out with their books and car insurance but i'm not planning on paying their way through school. Once they are 18, they are on their own.
Listen guys to each his own. My wife and I both put ourselves through college and came out with loan burden. We just don't want our child to have the same burden when he gets out of school. That does not mean I won't let him join armed forces or that we will pay for all his expenses. It just means that we would like to help our child out with some education expenses. Besides we look at it as our responsibility to save while we have some extra resources.
I'll be doing some combination of a 529 plan through vanguard investing in index funds and picking up I-Bonds from the US Treasury when the rates are favorable.
The index funds provide a little better growth potential, but more of a risk of down markets when you need cash. The I-bonds are a safer bet and can be more liquidible when needed and don't necessarily need to be used for college expenses. If you do use them for college there are tax advantages, if not, it's just a slightly higher yield savings account.
The index funds provide a little better growth potential, but more of a risk of down markets when you need cash. The I-bonds are a safer bet and can be more liquidible when needed and don't necessarily need to be used for college expenses. If you do use them for college there are tax advantages, if not, it's just a slightly higher yield savings account.
The way I am going to do it is spend $200 a month on tennis lessons and gear from the age of 4-6 to the age of 17. That right there is a full scholarship to the best universities in the states, plus he/she will be healthy and very disciplined ... tennis is one of those sports that do that to you. It kept me on track throughout my life, and I plan to do the same for my kids.
Yeah, I will think of plan B in case its not what they want to do. I can probably tell by the age of 10.
This is really my plan, no joke. Provided a supportive wify
Yeah, I will think of plan B in case its not what they want to do. I can probably tell by the age of 10.
This is really my plan, no joke. Provided a supportive wify
MyThirdEye
Diamond Member
My dad has 13 different properties he bought for my college. He crunched numbers, and apparently, that's how I'm getting into college.
child of wonder
Diamond Member
"Let my son in your school tuition free or I will crush you with 13 properties."
:laugh:
I keed... I keed...
Drekce
Golden Member
Remember the advice about focusing more on retirement savings than college. Kids can get loans, grants, scholarships, etc.; but none of those options are available to cover your retirement.
That being said...I am currently paying on the Florida Prepaid College Plan for 4 years of state school.
That being said...I am currently paying on the Florida Prepaid College Plan for 4 years of state school.
IL has something like this, and I'm just not sold on it. If your kid wants to go to a private school or something out of state, then you are looking at a less than 3% annual return.
And even if they do go instate, it's a $45,000 buy in to cover 4 years at current rates. And that's only for tuition. Room & board are still extra.
I'd rather invest in a tax protected account and take my chances of turning that into something much larger with more freedom than lock myself in.
I have absolutely no evidence to back this assumption, but I have this feeling that tuition prices are going to have to come back to reasonable levels at some point. State tuitions in many schools have doubled if not tripled in the last 5-7 years. At some point people are just going to stop going and they will have to figure out ways to make the prices more reasonable. Tuition rates have just seen far too crazy of rate hikes, the ceiling has to be getting pretty close.
I'm not buying completely into the FUD that is being spread right now because of the recent increases.
Both of our 401k's are fully funded plus company match. We are also saving enough for a rainy day but concern is saving for college and take some tax deductions as well.
What do you guys think of UGMA/UTMA ?? I don't like the idea of basically handing over a lot of money to an 18yr old to pretty much do anything he/she wants.
What do you guys think of UGMA/UTMA ?? I don't like the idea of basically handing over a lot of money to an 18yr old to pretty much do anything he/she wants.
Careful on those. I've always been told that for college savings, it's best to keep the money in your own name. Any money entrusted in the child's name really gets hammered when it comes time for FASFA filing. The parents catch more of a break than the kids do.
https://personal.vanguard.com/...9LowCostInvContent.jsp
Vanguard has a pretty reasonable setup there. You can choose from about 19 different index based porfolios and there are only fees if you have under $3000 in the account.
It's the same thing as most people choose for their own retirement. You won't find much better returns than that unless you are an incredible stock picker/trader.
When it comes to saving for my kid's college education, I really do not like to take much of any risk in the investment world. I'd rather take the safe route and go with plans that guarantee no risk or go with things like bonds. I realize that those things do not have the potential to get the most bang for my buck like other options, but the thought of saving for college and losing most of it due to some economic crisis is just not worth it to me despite the odds. College for my kids is just too important to risk that way. If anything, I will create a separate investment for myself which I will opt to use if my kid happens to need more money than I realized.
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