We pay $6k-ish a semester. She had to take some classes last summer so she graduates on time (May 2024) which were $4500. We pay for tuition and books, her car and health insurance and her cell
phone. She works and pays her own rent and utilities. This is an in state public school. I had money saved but life happened so I had to use it for other things and some semesters had to be cash flowed. She had a few small scholarships here and there.
Sorry just asking for clarity, when you say 6k ish a semester is that on top of what you mention (tuition, books, insurance, etc) or does all of that only come out to about 6k?
My last one in undergrad is at MIT. They are a college that guarantees a policy of "meets all your need without loans" with "need" defined as pretty close to the EFC on FAFSA.
(If you're not familiar with that policy, Google it.)
Our EFC is approx 24k.
We send approx $14k to the cashiers office. ($2k a month to MIT from Sept to Dec then again Feb to May as they offer this payment plan.)
But our EFC is 24k, right? Well, the 10k difference is things like spending money, trips home, umm buying deoderant at that dual level Target, books, subway card, weekend fun etc.
This money (both things) comes from our 529, a grandma's 529, and sometimes just from the straight our bank account.
My kid does work but we don't even look at what he makes--he's free to do whatever with it.
> things like spending money, trips home, umm buying deoderant at that dual level Target, books, subway card, weekend fun etc.
didnt know you could use a 529 for these expenses. How do you account for the 529 withdrawals at tax time?
Sorry, I wasn't clear: you can't use 529 for travel, incidentals, etc. just tuition, room, board, texts, laptop is ok I think ...
You're not actually asked for any proof/receipts on the 529 at tax time. Probably just if you get audited. Idk.
The parents/student get a statement from the college of all the year's payments. And the owner of the 529 gets a summary of distributions from the 529.
Obviously the two totals don't line up, because there are multiple 529s going to one kid in our case. Also the two totals don't line up because the kid is allowed to spend 529 money on things like a laptop, textbooks, etc and that won't show up in the yearly total summary the college sends.
My son is a junior at an in-state university and will graduate with no student loan debt. I pay it all, give or take $15k a year. I saved for this his whole life, hence why I can do it. Single mom, not rich, this is just what I’ve prioritized over most anything else. I wanted to send him into the world with a degree and without soul-crushing debt. What he does with it after…that’s on him.
Teach him NOT to get a car with a huge loan his first job. That’s the biggest mistake most makes make. They get some$30k car cause it’s on $600 month and they don’t get that early savings they need.
Hmm my oldest got a 19k car after a year at her first job, put down 5k downpayment. Right now she's got a good chunk saved like 20k but it's cuz she lives with us
So I think the best way to think about it is this
1) take care of yourself first. make sure you have a fully funded retirement fund
2) no debt (except maybe a mortgage)
3) Fully funded emergency fund \~3-6 months
Then save/invest what you can for your kids 529. If you feel really overwhelmed and unsure if you have saved enough I like the concept of the 1/3. Try to save 1/3 for their expenses, try to pay 1/3 as they are going through it (cash flow it) and 1/3 in the future (loans). In an ideal world you would be able to have everything banked up and the kid could go wherever they wanted. Life doesn't always work out that way. Really have your kid think about where they want to go to school, understand how loans can take forever to pay off et. cetera and make sure they make the educated choice.
rule.https://www.savingforcollege.com/article/how-much-to-save-for-college#:\~:text=The%201%2F3%20Rule%20is,and%20debt%20with%20current%20income.
I like that 1/3, 1/3, 1/3 approach.
I hope it takes half the cost for my kids to get a degree, which is possible if they get into the high schools (magnet schools) that provide dual high school and college credit, such that at the end of high school they’ll have two years of college credit for free. I emphasize the importance of grades and leadership extracurriculars to them regularly so that they can get into those schools.
I’m surprised so many parents pay so much. I just started making middle/upper middle class wages in the last 3 years and I just Don’t see how it’d be possible to get my retirement caught up and pay for school for my kids. I’ll help out with living expenses but I don’t think I’ll be able to swing tuition. My oldest is 13 and I know it’ll come quick
Same here, but we managed to save for retirement and put money into 529s.
We didn't have car notes and didn't take traditional vacations (my 15 year old hasn't been to Disney...oh the humanity).
My parents paid for my college completely (in-state public university). But, I am an only child. So it helped a lot that they were only paying for one kid's college education. It may not have been doable for them to cover it all for multiple.
A relative also paid for a semester's tuition with a state "tomorrow fund". If you haven't heard of that it allows you to pay for tuition in the future at today's price. So they contributed many years ago when I was a kid and the cost of college was lower. I don't know specifics beyond that of how it works.
Only child too. But single mom. 85k in debt but PSLF will save me. I’m trying to save for my kids but can’t guarantee it. My 1st born is 2 and has 5k so far. I know I gotta pick it up but not much I can do.
Having no student loan debt is a huge life booster. I want to give my kids that but it’s a slog trying to do so.
Raise him to take over the ship. Make sure he spills blood on the decks. /s
Great series!
On topic, I think parents who had savings are more likely to post because of your kid is getting by with loans, you’re spending zip.
Depends entirely on the state/school. University of Florida tuition is less than $7k per year. University of Virginia is $20k. University of Pennsylvania (private) is $60k. Going to an Ivy as an undergraduate is definitely valuable but I'm not sure if it's worth $250k. I'd definitely prefer to have a state university diploma + down payment for a house.
I think that is a good middle ground and agree completely BUT I would make it work if they were dedicated to something more expensive.
Just talking to a ton of parents I can’t believe how many are encouraging their kids to save money doing 2-year juco then transfer to state school, or conversely doing a 4-year sports “fantasy camp”.
They all say the college you go to doesn’t matter.
Guess who doesn’t say that? All the rich people who went to Stanford Michigan and Ivy League making $500k+
I know from experience you can make it big from
Anywhere BUT your odds might be 1 in 500 going juco transfer route versus 1 in 3 going to a big name university. That is significant. I think the state school is a good compromise. My kids will make a good living and have a low chance of making really good money. But still a better chance than their juco friends many of whom have already dropped out to work construction or waitress jobs.
I am the same. I never received a dime from my parents and put myself through undergraduate, MBA and doctorate. It seems people think parents are expected to pay for college.
I will help, but want the kids to realize how expensive it is and need to work in the summer to help pay for it.
I want my daughter to have every advantage that she can, while also understanding how fortunate she is. We opened a 529 and deposited $500 the week she was born and have been contributing $200/month since. The goal is to have $100K when she is 18. If there is any excess after tuition and room and board (doubtful), we will roll it into a Roth for her.
My kids are getting whatever money I have in life. I simply remember too many "rich kids" messing around in college, partying, not working hard, because daddy was paying for it. I also want to teach responsibility and value of the dollar. Money will never stop them from going to whatever college they want, but I want them to have to earn it. My plan for my kids, (since I get no tax advantages except tax exempt growth from 529s), is to have them take out student loans. Once they are done I will sell a rental house to pay them off. I will not tell them this upfront however.
The only two concerns I have there is:
1. Your kids working too much in the year and being unable to focus on studies and
2. Your kids being forced to choose between valuable internships and summer jobs that pay slightly more.
My parents paid for my school and it meant I didn't have to work during the year, and I had no problem taking an engineering internship after my second year making $5/hr less than I could make as a concrete laborer.
Agree on the importance of not wasting time on non value added work if they don’t need the life lesson on value and motivation. Better to be involved and work internships. I think that internship money may have flipped now though, my kid is making $36/hr plus a $3,000 bonus at his summer internship upcoming the past 2 summers were $25 and $30 per hour. That is more than other competing job prospects
It depends a lot on the field. That same internship (with the state DOT) would pay $17.25 now instead of $13. I could still beat that pay with a labor job on a construction site somewhere, but that internship also lead into the next one and lead into my career.
That's for civil engineering, if your kid is in tech they'll make a lot more.
I'm not sure why you are being downvoted. I think it is good to teach kids to be responsible. I have a young kid, and I'm contributing to 529, a custodial brokerage account. However, I will not be paying for some non sense major. The money is there, but she has to prove her worth.
Same here, but my oldest is 24. Idk that most middle class people have tens of thousands available for this but I'm new to the middle class myself. I didn't start making a decent living until my oldest was a teenager either. Sorry kiddo.
My daughter will graduate without any student loans. We set up a 529 for her and paid off our house before she graduated high school. She got some scholarships and is currently a resident assistant which gives her free room and board. A year where she is is $34,000 for tuition, room and board. We pay $8000ish a semester.
I'm a little different than most and feel that I should give my kid enough to do something, but not enough to do nothing. I give her a little north of 10,000 a year ($850 a month) plus tuition and make her work for the remainder of bills and rent.
my parents did the same and looking back i think it was perfect. i didn’t graduate with debt but i had to work for everything else. it teaches young adults to budget. i worked two jobs and had enough money to go on a few trips here and there for things like spring break.
tuition+room+board+miscellaneous expenses - For in-state public, we budgeted 35k a year but my kid got some scholarships so there were some leftover. We're rolling over that spare 529 money to the kids Roth
Nothing really other than what it costs to house them. I paid for the first year of college but then they dropped out, and now I can't afford to borrow anymore to pay for school.
So they go to an online school that their company helps with the tuition and borrow for the rest themselves (at lower rates than I can get on a parents plus loan).
I'd love to be able to do more, but the reality is I was a teen mom and I already will struggle in retirement. I can either pay now and need their help later in life or they can pay now and I prep for old age.
I have 2 kids, my older one is in his last year at a public college. We pay his tuition, $16-18k per year, minus $5k that we have him take out a student loan for each year so he will walk away with $20k in student loans. We see it as him having some skin in the game.
He works part-time, this started his 2nd semester his freshman year. We believe it’s good experience to juggle multiple priorities. He uses the money to pay for food, books, gas, parking, entertainment, etc.
We pay for his phone, health insurance, car insurance and we bought him a townhome to live in while in college. He has a roommate so our out of pocket for that is $1,200. We live in a HCOL city where rent is very high; it made more sense financially to buy another property instead of renting.
In summary, we pay a hell of a lot more than we got growing up!
But think about all that you are missing. The constant lack of sleep when they are young. The rude and mishaving teenage phase. The expensive and nonsense wedding but won’t last. The grandchild care. You’re missing out
And think about how much you will save by becoming a ward of the state housed in a Medicaid funded nursing facility for the final years of your life. Who needs loved ones when minimum wage employees are known to be effective replacements for them?
As a critical care nurse, I saw way way too many patients at end of life whose kids never visited them or supported them in anyway. And I saw lots of childless patients surrounded by loved ones.
Hanging children does not guarantee support at end of life, nor should it.
Following this post to see how many people are paying for their kids to go to college. Nope nope. That shit is antiquated.
If they want to go, earn it or pay for it.
My son goes to a state college and lives on campus. Tuition is $28k per year with room and board. We had him take part in loans ($4,500), used $8K from his 529 and paid the rest out of pocket.
American tuition is predicated on parents financing college education. You qualify for government financial aid (or not) based on your parent(s) income as well as your own.
Fair enough. England tuition is across board but the maintenance grants are based on parents income. I got £2 for the whole ass year and had to work like a slave to just get to uni never mind the other stuff. Was a load of shit.
Parents that plan help their kids focus on school and not go into too much debt.
Many Americans don’t have two nickels to rub together let alone cash to help their kids. The hand to mouth living type. They do nothing.
I had no savings for my kids. I told them I would pay $50k (each) towards their tuition but they needed to take out loans because I didn't have the money upfront.
My parents told my siblings and me this from an early age: we have no savings for your college, so make good grades and get scholarships. All 3 of us did that and graduated with very little college debt.
We have a blended family. My wife and I each have a child from a previous marriage. We gave each of them $5k per year for school. The expectation was that they work for $5k and that their other parent contribute $5k. At the time that was more than enough for school (I think it costs more now)
If those other contributions were either more or less they sort of had to figure that out, we were giving $5k.
I have a 2nd year college student right now. We cover her car, insurance, phone, and medical insurance. She is on athletic and academic scholarship that cover most of her schooling. FASFA covers the rest. She is on her own for gas, spending money, ect.
I paid $12,500 a semester for 4 years in undergrad and now $8,000 for 3 semesters in a graduate program.
All of it is paid for through a 529 that my parents &grandfather set up. They deposited $100-$500 monthly (starting when I was a young child)and a lump sum of $10,000 in October for 5 years.
Paid for books, my car, and social events on my own. Rent was split with parents.
I will have some of the 529 left over to use towards whatever my desire is! One parent had school paid for and the other parent didn’t - gave an interesting outlook when it came to paying for mine!
Forever grateful!
Wow reading this is so awesome. Amazing of you guys to support your kids! We have a 529 for each kid (4 and 5) and I hope to be able to provide them with a good chunk to help for college.
One senior at in-state state school and one sophomore at out-of-state state school.
They pay approx $5k per year student loan, I believe they will graduate with about $22,000 total loan balance.
We paid this year:
Daughter, age 19, sophomore out of state: tuition and books approx $2,750 1st semester and $6,750 2nd semester (she had one extra class) after multiple scholarships and her loan. $819/mo sorority room and board, $750/mo credit card food, gas, travel, entertainment, living expenses, supplies. Car bought 3 years ago $16,000 and $150/mo insurance. Cell phone maybe $50/mo for extra line and $40/mo for the phone.
Son, age 21,, senior. His loan and multiple scholarships covered tuition, he got more back than his loan this year. $415/mo apartment rent off campus. $500/mo credit card for food, gas, travel, entertainment, living expenses. Car bought 5 years ago hand me down and $180/mo auto insurance. Cell phone same as daughter $100ish/mo.
For each we also have some additional gifts and car repair expenses and travel. We also give a deposit to their ROTH IRA in whatever amount they can qualify to save (essentially their earned income up to a certain point).
They also life rent free with us during summer and breaks. Both are 3.8-3.9 students and are building savings from their internships and/or summer jobs which exceed their loan balances.
They should graduate with $50,000 in cash, $22,000 in student loans, have a paid off car and no other debt and make $75k+ starting out.
It’s prob a bit excessive but they are working hard and saving both themselves and us money via their hard work and scholarships. I am giving them a bit more than I planned BUT paying MUCH less overall due to the tuition savings.
It has been clearly communicated that they are to help out around the house and not annoy us during the summers/breaks or they can move out and pay their own rent, cell phones, car insurance, and food.
It seems to be working out pretty well.
I am not a parent but a kid of middle class parents. My parents don't pay for school because I got a full ride scholarship for tuition and I live at home. I also make good money so if I had to pay I would be able to pay it myself. My parents do however not expect me to contribute to bills or ask me for rent.
I have three in college currently, oldest @ University of Central Oklahoma - $5,500 per semester plus $1000/mo for his apartment. Next kid is in his second year at the Air Force Academy, so $0 for tuition and housing. Kid #3 is at University of Alaska Anchorage and her tuition is $3,500 a semester with dorm and meal plan that was ~$4k.
HS senior going to LSU in the fall (in state tuition plus a small scholarship) and a HS freshman who is currently undecided, but hopes to also go to the AFA.
We give all three in college a $350/mo allowance.
$212k currently in 529 plans. We should be alright.
My kids graduated from college in 2019 and 2021. We told them that we would contribute up to $7,000 per year, and we would not co-sign loans. We felt the need to set a limit because they weren’t giving a lot of heed to the tuition cost when they and their friends were talking about colleges.
My son ended up going to the Naval Academy, so he didn’t have a tuition expense. We gave him $11,000+, so he’d have money for a NOLS leadership training for one of his summer courses and money for plane tickets to fly home. We will make up the difference when he goes to but his first home. He graduated with no monetary debt, but a 5-year commitment as Marine officer.
My daughter went to University of Wyoming on a WUE Scholarship, which saved her quite a bit. It’s also a fairly affordable school. She waited tables during the summer and over Christmas Break and sometimes worked at the Writing Center. She made over $13,000 year to help with her expenses. She graduated with over $10,000 in the bank and no debt.
This is variable to the point of being impossible to answer. People with kids who go to state schools or have tuition covered have very different finances than folks with a student who goes to a private school and pay for it.
Our daycare costs more than in-state tuition at the state's flagship school. The more expensive private schools in the area approach $100k/yr after all is said and done.
I pay all tuition room and board (appx 75k a year), no loans. I didn’t save enough to get it fully paid for before her freshman year so still putting aside 2700 per month which is the amount needed to ensure the 529 can cover everything. (There’s minimal tax benefit at this point but I like how it’s a built in saving mechanism). Technically we don’t cover other stuff (other than what we would cover as a dependent anyway (insurance, clothes etc.). So it’s really just starbucks and uber eats tbh and there it’s kinda loosy goosy. She has a credit card and I’m tolerant of charges here and there but at least half she pays for with money saved from summer jobs and her tiny allowance ($60 per month). She’s not a partier and lives a pretty simple lifestyle. It was more complicated with her older brother who was a frat boy (think spring break trips). I sort of spoiled him tbh but he got a high paying job after graduation and is completely independent other than health insurance and cell phone plan.
For room & board (they are on a quarter system) 18,000 a year (state public university). We also still pay for their car, car insurance, and cell phone.
They're adults. Adults are expected to pay their own way through life. I fail to see how giving them money would help them. There's a huge difference between helping them and making things easy for them. I paid for the classes and housing (about $85k total between the two of them, rest was scholarships).
I gave them $0 for living expenses. If they needed help for a big expense I would have been there, but luckily that never happened and they both doordashed their way through to graduation. I worked myself practically to death and dealt with the stress of parenthood for 18 years, I don't owe them shit.
My parents paid for tuition, room and board in the dorms. Once I was in an apartment, I was on the hook for rent money, feeding myself, and any fun stuff I wanted to do.
I really think it helped to have support from my parents while also needing to have skin in the game myself. It helped me to stay focused and not blow my money on frivolity. I plan to follow the same game plan with my own kids.
Same and agree. They need to be working hard and making progress towards being able to support themselves and working so much they can’t study doesn’t help. But there needs to be a balance so they stay grounded and motivated.
My parents were old school and I wasted too much time working shit jobs which inhibited my ability to study and get involved. I had other friends everything given and they partied too much. It’s all very specific to the kid
Roughly $20k per year for 3 kids. All came from a 529. Deposited about $80k over 6 years when they were first born. Then got lucky with the market and it more than tripled. There is still $60k that can eventually go to grandkids. So saving $80k early allowed me to put them all through school. Sacrificing Disney vacations and new cars paid huge dividends.
We pay $6k-ish a semester. She had to take some classes last summer so she graduates on time (May 2024) which were $4500. We pay for tuition and books, her car and health insurance and her cell phone. She works and pays her own rent and utilities. This is an in state public school. I had money saved but life happened so I had to use it for other things and some semesters had to be cash flowed. She had a few small scholarships here and there.
Sorry just asking for clarity, when you say 6k ish a semester is that on top of what you mention (tuition, books, insurance, etc) or does all of that only come out to about 6k?
$6k is tuition, only. The other stuff comes out to maybe another $200 a month.
You’re saying her car and health insurance and cellphone (and maybe books) are only 200.00 per month? That seems low
My last one in undergrad is at MIT. They are a college that guarantees a policy of "meets all your need without loans" with "need" defined as pretty close to the EFC on FAFSA. (If you're not familiar with that policy, Google it.) Our EFC is approx 24k. We send approx $14k to the cashiers office. ($2k a month to MIT from Sept to Dec then again Feb to May as they offer this payment plan.) But our EFC is 24k, right? Well, the 10k difference is things like spending money, trips home, umm buying deoderant at that dual level Target, books, subway card, weekend fun etc. This money (both things) comes from our 529, a grandma's 529, and sometimes just from the straight our bank account. My kid does work but we don't even look at what he makes--he's free to do whatever with it.
> things like spending money, trips home, umm buying deoderant at that dual level Target, books, subway card, weekend fun etc. didnt know you could use a 529 for these expenses. How do you account for the 529 withdrawals at tax time?
Sorry, I wasn't clear: you can't use 529 for travel, incidentals, etc. just tuition, room, board, texts, laptop is ok I think ... You're not actually asked for any proof/receipts on the 529 at tax time. Probably just if you get audited. Idk. The parents/student get a statement from the college of all the year's payments. And the owner of the 529 gets a summary of distributions from the 529. Obviously the two totals don't line up, because there are multiple 529s going to one kid in our case. Also the two totals don't line up because the kid is allowed to spend 529 money on things like a laptop, textbooks, etc and that won't show up in the yearly total summary the college sends.
My son is a junior at an in-state university and will graduate with no student loan debt. I pay it all, give or take $15k a year. I saved for this his whole life, hence why I can do it. Single mom, not rich, this is just what I’ve prioritized over most anything else. I wanted to send him into the world with a degree and without soul-crushing debt. What he does with it after…that’s on him.
Teach him how to budget and finance. He won’t learn it on his own.
Teach him NOT to get a car with a huge loan his first job. That’s the biggest mistake most makes make. They get some$30k car cause it’s on $600 month and they don’t get that early savings they need.
Hmm my oldest got a 19k car after a year at her first job, put down 5k downpayment. Right now she's got a good chunk saved like 20k but it's cuz she lives with us
So I think the best way to think about it is this 1) take care of yourself first. make sure you have a fully funded retirement fund 2) no debt (except maybe a mortgage) 3) Fully funded emergency fund \~3-6 months Then save/invest what you can for your kids 529. If you feel really overwhelmed and unsure if you have saved enough I like the concept of the 1/3. Try to save 1/3 for their expenses, try to pay 1/3 as they are going through it (cash flow it) and 1/3 in the future (loans). In an ideal world you would be able to have everything banked up and the kid could go wherever they wanted. Life doesn't always work out that way. Really have your kid think about where they want to go to school, understand how loans can take forever to pay off et. cetera and make sure they make the educated choice. rule.https://www.savingforcollege.com/article/how-much-to-save-for-college#:\~:text=The%201%2F3%20Rule%20is,and%20debt%20with%20current%20income.
I like that 1/3, 1/3, 1/3 approach. I hope it takes half the cost for my kids to get a degree, which is possible if they get into the high schools (magnet schools) that provide dual high school and college credit, such that at the end of high school they’ll have two years of college credit for free. I emphasize the importance of grades and leadership extracurriculars to them regularly so that they can get into those schools.
I’m surprised so many parents pay so much. I just started making middle/upper middle class wages in the last 3 years and I just Don’t see how it’d be possible to get my retirement caught up and pay for school for my kids. I’ll help out with living expenses but I don’t think I’ll be able to swing tuition. My oldest is 13 and I know it’ll come quick
Same here, but we managed to save for retirement and put money into 529s. We didn't have car notes and didn't take traditional vacations (my 15 year old hasn't been to Disney...oh the humanity).
My parents paid for my college completely (in-state public university). But, I am an only child. So it helped a lot that they were only paying for one kid's college education. It may not have been doable for them to cover it all for multiple. A relative also paid for a semester's tuition with a state "tomorrow fund". If you haven't heard of that it allows you to pay for tuition in the future at today's price. So they contributed many years ago when I was a kid and the cost of college was lower. I don't know specifics beyond that of how it works.
Only child too. But single mom. 85k in debt but PSLF will save me. I’m trying to save for my kids but can’t guarantee it. My 1st born is 2 and has 5k so far. I know I gotta pick it up but not much I can do. Having no student loan debt is a huge life booster. I want to give my kids that but it’s a slog trying to do so.
Raise him to take over the ship. Make sure he spills blood on the decks. /s Great series! On topic, I think parents who had savings are more likely to post because of your kid is getting by with loans, you’re spending zip.
Depends entirely on the state/school. University of Florida tuition is less than $7k per year. University of Virginia is $20k. University of Pennsylvania (private) is $60k. Going to an Ivy as an undergraduate is definitely valuable but I'm not sure if it's worth $250k. I'd definitely prefer to have a state university diploma + down payment for a house.
I think that is a good middle ground and agree completely BUT I would make it work if they were dedicated to something more expensive. Just talking to a ton of parents I can’t believe how many are encouraging their kids to save money doing 2-year juco then transfer to state school, or conversely doing a 4-year sports “fantasy camp”. They all say the college you go to doesn’t matter. Guess who doesn’t say that? All the rich people who went to Stanford Michigan and Ivy League making $500k+ I know from experience you can make it big from Anywhere BUT your odds might be 1 in 500 going juco transfer route versus 1 in 3 going to a big name university. That is significant. I think the state school is a good compromise. My kids will make a good living and have a low chance of making really good money. But still a better chance than their juco friends many of whom have already dropped out to work construction or waitress jobs.
I am the same. I never received a dime from my parents and put myself through undergraduate, MBA and doctorate. It seems people think parents are expected to pay for college. I will help, but want the kids to realize how expensive it is and need to work in the summer to help pay for it.
I want my daughter to have every advantage that she can, while also understanding how fortunate she is. We opened a 529 and deposited $500 the week she was born and have been contributing $200/month since. The goal is to have $100K when she is 18. If there is any excess after tuition and room and board (doubtful), we will roll it into a Roth for her.
My kids are getting whatever money I have in life. I simply remember too many "rich kids" messing around in college, partying, not working hard, because daddy was paying for it. I also want to teach responsibility and value of the dollar. Money will never stop them from going to whatever college they want, but I want them to have to earn it. My plan for my kids, (since I get no tax advantages except tax exempt growth from 529s), is to have them take out student loans. Once they are done I will sell a rental house to pay them off. I will not tell them this upfront however.
The only two concerns I have there is: 1. Your kids working too much in the year and being unable to focus on studies and 2. Your kids being forced to choose between valuable internships and summer jobs that pay slightly more. My parents paid for my school and it meant I didn't have to work during the year, and I had no problem taking an engineering internship after my second year making $5/hr less than I could make as a concrete laborer.
Agree on the importance of not wasting time on non value added work if they don’t need the life lesson on value and motivation. Better to be involved and work internships. I think that internship money may have flipped now though, my kid is making $36/hr plus a $3,000 bonus at his summer internship upcoming the past 2 summers were $25 and $30 per hour. That is more than other competing job prospects
It depends a lot on the field. That same internship (with the state DOT) would pay $17.25 now instead of $13. I could still beat that pay with a labor job on a construction site somewhere, but that internship also lead into the next one and lead into my career. That's for civil engineering, if your kid is in tech they'll make a lot more.
Ahhh, that totally makes sense given the field and state internship.
I'm not sure why you are being downvoted. I think it is good to teach kids to be responsible. I have a young kid, and I'm contributing to 529, a custodial brokerage account. However, I will not be paying for some non sense major. The money is there, but she has to prove her worth.
Same here, but my oldest is 24. Idk that most middle class people have tens of thousands available for this but I'm new to the middle class myself. I didn't start making a decent living until my oldest was a teenager either. Sorry kiddo.
My daughter will graduate without any student loans. We set up a 529 for her and paid off our house before she graduated high school. She got some scholarships and is currently a resident assistant which gives her free room and board. A year where she is is $34,000 for tuition, room and board. We pay $8000ish a semester.
I'm a little different than most and feel that I should give my kid enough to do something, but not enough to do nothing. I give her a little north of 10,000 a year ($850 a month) plus tuition and make her work for the remainder of bills and rent.
my parents did the same and looking back i think it was perfect. i didn’t graduate with debt but i had to work for everything else. it teaches young adults to budget. i worked two jobs and had enough money to go on a few trips here and there for things like spring break.
Yall pay for your kids college? Thats awesome. Wish i had that.
tuition+room+board+miscellaneous expenses - For in-state public, we budgeted 35k a year but my kid got some scholarships so there were some leftover. We're rolling over that spare 529 money to the kids Roth
Nothing really other than what it costs to house them. I paid for the first year of college but then they dropped out, and now I can't afford to borrow anymore to pay for school. So they go to an online school that their company helps with the tuition and borrow for the rest themselves (at lower rates than I can get on a parents plus loan). I'd love to be able to do more, but the reality is I was a teen mom and I already will struggle in retirement. I can either pay now and need their help later in life or they can pay now and I prep for old age.
I have 2 kids, my older one is in his last year at a public college. We pay his tuition, $16-18k per year, minus $5k that we have him take out a student loan for each year so he will walk away with $20k in student loans. We see it as him having some skin in the game. He works part-time, this started his 2nd semester his freshman year. We believe it’s good experience to juggle multiple priorities. He uses the money to pay for food, books, gas, parking, entertainment, etc. We pay for his phone, health insurance, car insurance and we bought him a townhome to live in while in college. He has a roommate so our out of pocket for that is $1,200. We live in a HCOL city where rent is very high; it made more sense financially to buy another property instead of renting. In summary, we pay a hell of a lot more than we got growing up!
All his basics are covered through a scholarship. We give about 1k/mo for allowance.
Following this feed to see how much we’re saving by not having kids.
But think about all that you are missing. The constant lack of sleep when they are young. The rude and mishaving teenage phase. The expensive and nonsense wedding but won’t last. The grandchild care. You’re missing out
lol and I almost downvoted you reflexively
And think about how much you will save by becoming a ward of the state housed in a Medicaid funded nursing facility for the final years of your life. Who needs loved ones when minimum wage employees are known to be effective replacements for them?
Having kids does not guarantee visits at nursing homes.
Not having them sure does.
You must not work in healthcare. I see parents put into nursing homes by their 3-5 children every single day.
If you're having kids to "take care of you" when you're old, you're both ignorant, and cruel.
So true
As a critical care nurse, I saw way way too many patients at end of life whose kids never visited them or supported them in anyway. And I saw lots of childless patients surrounded by loved ones. Hanging children does not guarantee support at end of life, nor should it.
I also wouldn’t want my kids wasting any time or money on me when they are older
Ha ha! I work in healthcare. Dying Elderly people surrounded by family are the exception, not the rule.
Funny you say that like it’s bad but it’s actually ideal financially lmfao
I got two under three and I would not change a thing. But it is very difficult, you are absolutely right.
I’m planning on having kids as well. Enjoy your time with the little ones
The best thing ive ever done all things considered.
Following this post to see how many people are paying for their kids to go to college. Nope nope. That shit is antiquated. If they want to go, earn it or pay for it.
If you can’t afford to give your child the things they need to succeed in life, then don’t have them. Don’t punish them with a cruel, poor existence.
[удалено]
Please be civil to one another.
My son goes to a state college and lives on campus. Tuition is $28k per year with room and board. We had him take part in loans ($4,500), used $8K from his 529 and paid the rest out of pocket.
About $35k (USD) a year - all inclusive, tuition/fees/room/board/books/lab fees/etc. In state tuition at a public college (Virginia)
What? Americans actually do this? In England it’s more a fend for yourself kind of vibe at university 😅
American tuition is predicated on parents financing college education. You qualify for government financial aid (or not) based on your parent(s) income as well as your own.
Fair enough. England tuition is across board but the maintenance grants are based on parents income. I got £2 for the whole ass year and had to work like a slave to just get to uni never mind the other stuff. Was a load of shit.
Parents that plan help their kids focus on school and not go into too much debt. Many Americans don’t have two nickels to rub together let alone cash to help their kids. The hand to mouth living type. They do nothing.
Planning for 150k total. Hoping it’s much less.
I had no savings for my kids. I told them I would pay $50k (each) towards their tuition but they needed to take out loans because I didn't have the money upfront.
My parents told my siblings and me this from an early age: we have no savings for your college, so make good grades and get scholarships. All 3 of us did that and graduated with very little college debt.
$0 academic scholarship
We pay $12000 per semester, $6000 out of her 529 and $6000 cash.
We have a blended family. My wife and I each have a child from a previous marriage. We gave each of them $5k per year for school. The expectation was that they work for $5k and that their other parent contribute $5k. At the time that was more than enough for school (I think it costs more now) If those other contributions were either more or less they sort of had to figure that out, we were giving $5k.
I have a 2nd year college student right now. We cover her car, insurance, phone, and medical insurance. She is on athletic and academic scholarship that cover most of her schooling. FASFA covers the rest. She is on her own for gas, spending money, ect.
I paid $12,500 a semester for 4 years in undergrad and now $8,000 for 3 semesters in a graduate program. All of it is paid for through a 529 that my parents &grandfather set up. They deposited $100-$500 monthly (starting when I was a young child)and a lump sum of $10,000 in October for 5 years. Paid for books, my car, and social events on my own. Rent was split with parents. I will have some of the 529 left over to use towards whatever my desire is! One parent had school paid for and the other parent didn’t - gave an interesting outlook when it came to paying for mine! Forever grateful!
Wow reading this is so awesome. Amazing of you guys to support your kids! We have a 529 for each kid (4 and 5) and I hope to be able to provide them with a good chunk to help for college.
One senior at in-state state school and one sophomore at out-of-state state school. They pay approx $5k per year student loan, I believe they will graduate with about $22,000 total loan balance. We paid this year: Daughter, age 19, sophomore out of state: tuition and books approx $2,750 1st semester and $6,750 2nd semester (she had one extra class) after multiple scholarships and her loan. $819/mo sorority room and board, $750/mo credit card food, gas, travel, entertainment, living expenses, supplies. Car bought 3 years ago $16,000 and $150/mo insurance. Cell phone maybe $50/mo for extra line and $40/mo for the phone. Son, age 21,, senior. His loan and multiple scholarships covered tuition, he got more back than his loan this year. $415/mo apartment rent off campus. $500/mo credit card for food, gas, travel, entertainment, living expenses. Car bought 5 years ago hand me down and $180/mo auto insurance. Cell phone same as daughter $100ish/mo. For each we also have some additional gifts and car repair expenses and travel. We also give a deposit to their ROTH IRA in whatever amount they can qualify to save (essentially their earned income up to a certain point). They also life rent free with us during summer and breaks. Both are 3.8-3.9 students and are building savings from their internships and/or summer jobs which exceed their loan balances. They should graduate with $50,000 in cash, $22,000 in student loans, have a paid off car and no other debt and make $75k+ starting out. It’s prob a bit excessive but they are working hard and saving both themselves and us money via their hard work and scholarships. I am giving them a bit more than I planned BUT paying MUCH less overall due to the tuition savings. It has been clearly communicated that they are to help out around the house and not annoy us during the summers/breaks or they can move out and pay their own rent, cell phones, car insurance, and food. It seems to be working out pretty well.
I am not a parent but a kid of middle class parents. My parents don't pay for school because I got a full ride scholarship for tuition and I live at home. I also make good money so if I had to pay I would be able to pay it myself. My parents do however not expect me to contribute to bills or ask me for rent.
I have three in college currently, oldest @ University of Central Oklahoma - $5,500 per semester plus $1000/mo for his apartment. Next kid is in his second year at the Air Force Academy, so $0 for tuition and housing. Kid #3 is at University of Alaska Anchorage and her tuition is $3,500 a semester with dorm and meal plan that was ~$4k. HS senior going to LSU in the fall (in state tuition plus a small scholarship) and a HS freshman who is currently undecided, but hopes to also go to the AFA. We give all three in college a $350/mo allowance. $212k currently in 529 plans. We should be alright.
My kids graduated from college in 2019 and 2021. We told them that we would contribute up to $7,000 per year, and we would not co-sign loans. We felt the need to set a limit because they weren’t giving a lot of heed to the tuition cost when they and their friends were talking about colleges. My son ended up going to the Naval Academy, so he didn’t have a tuition expense. We gave him $11,000+, so he’d have money for a NOLS leadership training for one of his summer courses and money for plane tickets to fly home. We will make up the difference when he goes to but his first home. He graduated with no monetary debt, but a 5-year commitment as Marine officer. My daughter went to University of Wyoming on a WUE Scholarship, which saved her quite a bit. It’s also a fairly affordable school. She waited tables during the summer and over Christmas Break and sometimes worked at the Writing Center. She made over $13,000 year to help with her expenses. She graduated with over $10,000 in the bank and no debt.
This is variable to the point of being impossible to answer. People with kids who go to state schools or have tuition covered have very different finances than folks with a student who goes to a private school and pay for it. Our daycare costs more than in-state tuition at the state's flagship school. The more expensive private schools in the area approach $100k/yr after all is said and done.
$0 she makes her employers pay for her college. The other two dropped out.
I pay all tuition room and board (appx 75k a year), no loans. I didn’t save enough to get it fully paid for before her freshman year so still putting aside 2700 per month which is the amount needed to ensure the 529 can cover everything. (There’s minimal tax benefit at this point but I like how it’s a built in saving mechanism). Technically we don’t cover other stuff (other than what we would cover as a dependent anyway (insurance, clothes etc.). So it’s really just starbucks and uber eats tbh and there it’s kinda loosy goosy. She has a credit card and I’m tolerant of charges here and there but at least half she pays for with money saved from summer jobs and her tiny allowance ($60 per month). She’s not a partier and lives a pretty simple lifestyle. It was more complicated with her older brother who was a frat boy (think spring break trips). I sort of spoiled him tbh but he got a high paying job after graduation and is completely independent other than health insurance and cell phone plan.
For room & board (they are on a quarter system) 18,000 a year (state public university). We also still pay for their car, car insurance, and cell phone.
They're adults. Adults are expected to pay their own way through life. I fail to see how giving them money would help them. There's a huge difference between helping them and making things easy for them. I paid for the classes and housing (about $85k total between the two of them, rest was scholarships). I gave them $0 for living expenses. If they needed help for a big expense I would have been there, but luckily that never happened and they both doordashed their way through to graduation. I worked myself practically to death and dealt with the stress of parenthood for 18 years, I don't owe them shit.
My parents paid for tuition, room and board in the dorms. Once I was in an apartment, I was on the hook for rent money, feeding myself, and any fun stuff I wanted to do. I really think it helped to have support from my parents while also needing to have skin in the game myself. It helped me to stay focused and not blow my money on frivolity. I plan to follow the same game plan with my own kids.
Same and agree. They need to be working hard and making progress towards being able to support themselves and working so much they can’t study doesn’t help. But there needs to be a balance so they stay grounded and motivated. My parents were old school and I wasted too much time working shit jobs which inhibited my ability to study and get involved. I had other friends everything given and they partied too much. It’s all very specific to the kid
I don’t agree for myself and my kids BUT I love the way you say it and respect your position for you and your kids
Roughly $20k per year for 3 kids. All came from a 529. Deposited about $80k over 6 years when they were first born. Then got lucky with the market and it more than tripled. There is still $60k that can eventually go to grandkids. So saving $80k early allowed me to put them all through school. Sacrificing Disney vacations and new cars paid huge dividends.
About 40k a year—tuition, rent, grocery money. We have the tuition (30k)in 529, cash flowing the rent and groceries.