<p>... to just keep all this college money for yourselves? </p>
<p>I don't get it... this is the first big decision of their lives they get to make, over one of the biggest investments in themselves they'll ever complete, and I barely get a blip of interest from either of the two honors students I am raising. Skilled athlete S occasionally looks up schools online or emails coaches to humor me and under threats that the phone won't ring on July 1st unless he updates his stats this very instant! D, who is a strong contender for valedictorian, only took an interest in UVa when I mentioned it was a party school and came in at #8 for "Hot Guys". (She thinks an Ivy or like calliber would be too much pressure...)</p>
<p>My own parents took next to no interest in the process and I made several unguided decisions with college I still regret. Personally I've love to go back and get a second degree.</p>
<p>I guess I should have a little faith that they'll eventually decide where to apply if only because all their friends will start doing it. Anyone else feeling this way?</p>
<p>Never in a million years did I consider not funding my kids education. I considered this our responsibility. How old are your kids? Is it time for them to be dealing with the college hunt yet, or is this a bit early in the game? If you have honors students, have faith that they will redirect their dedication to the college search when the time is right. DOesnt mean they will be organized or efficient. They are teenagers. This is norman!!</p>
<p>It’s funny, I was just reminiscing with my mom about the time I said to my father, almost 35 years ago, “Maybe I won’t go to college.” He was Cornell undergrad and Yale Med School–I thought his head would explode. Fast forward a few years, and I was applying to (and getting into) Ivies with the best of them. </p>
<p>I’m guessing from your post that your kids are juniors or possibly even younger. Give it time; it’s almost definite that it isn’t on their radar screens yet… or maybe they know it drives you nuts, and are playing this game to aggravate you. Are there cousins or older friends from HS who are doing well in college? Maybe there are a few negative role models, kids who haven’t done very well because they didn’t pursue an education…the lightbulb WILL go on. And half a million dollars later…? Tell your son to keep his stats up!</p>
<p>I will open up a Roth IRA or a Roth 401K or traditional 401k(if my job offers it) when I first get my job in college. I will start saving for retirement and start paying off debt as soon as I can. I will contribute up to 33% of my paycheck into the IRA or 401k during college (smaller % if for IRA). The other 33% into paying off loans and 20% for everyday expenses and the last 13% into an emergency fund in a money market account. After that debt is paid off, I will start saving for my future kids’ education with that 33% paycheck and gradually lowering the percentage as I get older. I hope the interest can get the education nest egg to beat the inflation. I will pay a relatively low taxes during college because how much do you expect a kid to make? Most of my investments will be in aggressive ETFs and indices. Perhaps a small chunk of the education funds into a 30 year treasury bond.</p>
<p>davidthefat, this sounds uber-responsible but is it realistic? and worthwhile? Maybe you have your folks helping you out, but as someone who had to pay their own way, the utility of each $20 back in the day was tremendous when I was young and basically like spitting in the ocean compared to what I earned after I finished my education. Had I followed your textbook suggestion, I would have incurred a ridiculous cost (in terms of real utility to me at the time), and the financial advantage would have been negligible.</p>
<p>I assume most of the expenses in college will be from food. I’ll just get a meal plan and not worry about day to day expenses of food. For clothes, that can be bought during breaks, most likely using the money from my parents (just a $300 will be sufficient for me). I am very low maintenance when it comes to clothes.</p>
<p>david - I’ll give you a little quick and dirty investment advice.</p>
<p>First, put some money away in case of an emergency
Then pay off all your debt. Line it up smallest to largest and focus on one at a time.
Then beef up your savings account to be able to live 3 months if you lose your job
Then worry about saving for retirement - though at your age good for you for thinking ahead like this. Saving 15% of your salary from the time you get out of college and keeping that up the rest of your life will have you in solid footing
Then think about things like buying a car, a house, etc. </p>
<p>Don’t ever get sucked into credit cards before you have a job, pay the balances off in full, live below your means.</p>
<p>Do not worry about saving for future kids college until you actually have these kids. No need to put the cart in front of the horse. It’s more important to big a good spouse.</p>
<p>oops, typo in #2 – this is normal (not norman, lol).</p>
<p>We’ve been paying for our kids’ education since they were in preschool. The checks have just been getting bigger and bigger. But next semester should be the very last one! </p>
<p>The best investment one can make is a well-earning spouse and a move to a lower cost of living area while earning relatively decent money. One can argue about saving uber-amounts all they want but they may end up like my officemate, the guy has been working for 23 years and is still living on Goodwill / parent donated furniture and pinches pennies like they’re going out of style. </p>
<p>LongPrime nailed it with the ‘middle class investment strategy’. Our strategy was to save in general, build a reasonable college fund, and earn enough so we could pay for DD1 (and DD2 later) for college from our month-to-month income without changing our savings rate or spending what ever is already in the ‘college fund’. </p>
<p>Put another way, given the recent (10+ year) financial climate and rate of increase of college costs, there is no way someone in their 20’s or 30’s that is not in the 1% will save enough or invest it well enough to pay for instate tuition + dorm, let alone private etc. Figure what it takes to save and what rate of return you need to cover $28-22k a year in 2010 figures, back in, say, 1990, and take into account the market booms and busts. Also take into account what the family income was 20 years ago and what the college savings (expected) was back then.</p>
<p>Neither of my kids (college soph and HS junior) are/were interested in the whole college selection process - too many choices. So we made a deal, pick a handful of “acceptable” choices and whichever college gave/gives the most money (scholarships + fin aid) would be their pick. Worked for #1, plan on it working for #2. Kids get a fine education AND H and I have a lot more money to spend on ourselves! Best of both worlds!</p>
<p>I’m tired of doing the wise, responsible financial thing every month. I want to remodel the kitchen and replace our falling-down deck. Please. Please let me do this now. Or if not now, maybe in 2 years when #1 graduates. Please don’t make me wait 4 years until #2 is done. </p>
<p>I’m willing to bet that the more you pressure them, the less cooperative they will be. Back off a little. It sounds like your regrets about your own parents is causing you to become overly emotional about their college choices and your involvement. In a different post, you stated that you took your kids on a tour of one of the state schools as a means of threatening them that they might end up there if they didn’t get cracking on the college search and grades - thousands of students are very happy and successful coming out of PA state schools, it would not be the worst thing in the world if they end up there. Many honors students do, because of financial concerns or personal choice.</p>
<p>My honors student (#4 in her class of about 200) did not seriously look at colleges until spring of her junior year. She knew what she wanted for her major (limited number of schools offer it), knew that she wanted to stay in-state, and checked out the available schools. Applied to a total of four, three privates and a state, which would be totally unacceptable to most of the parents on CC. Could’ve gotten into Ivies, at least as good a chance as her peers, but chose not to. Loves her life, has residency programs begging her to consider them. </p>
<p>Older daughter only seriously considered one college, in the state system. She interviewed at two privates but chose not to apply to them.</p>
<p>There are kids, some of them very smart kids, who are just not ready to head off to college at 18. I think parents do kids a disservice by forcing them into a mold that says “College follows high school, don’t question it.” There are plenty of people who put off college for a few years, then are ready for it, and have very successful lives. And for many of them, the college experience is a whole lot more valuable than it would have been had they marched off to the School of Dreams at 18.</p>
<p>I realize that suggesting this on this forum is akin to spitting into the face of Hurricane Irene - but if your kid isn’t ready for college, why not suggest a couple of years working, or a tour in the armed forces, with the understanding that there will be parental support available when the kid is ready?</p>
<p>IMO, just because your kid isn’t interested in the selection process doesn’t mean that he/she is not ready for college. My kids want to attend college (and are excellent students, etc) They just found the research process boring. Every campus tour got the same response - “It’s fine.” To be honest, older D would have been happy and thriving in any college she attended. She’s just that kind of kid. Younger S is same way. No “dream schools” - just several “acceptable” choices.</p>
<p>I think one of the reasons kids drag their feet in the college search is because they just don’t know much/anything about how to shop for college. Fear of the unknown can be paralyzing.</p>
and a move to a lower cost of living area while earning relatively decent money. One can argue about saving uber-amounts all they want but they may end up like my officemate, the guy has been working for 23 years and is still living on Goodwill / parent donated furniture and pinches pennies like they’re going out of style. </p>