The 401K option worked better for us than 529s would have. We did not have to use it for college though. I wonder if 529s could be used for the Graduate school. What is a flexibility with the 529? What if you do not need to use it for college? Can you use it for anything else?
529 funds can be used for most any type of college, undergrad, grad, professional. They can be transferred to another person, like a sibling, grandchild, back to parent. Benefit over a 401k is that there is no penalty for withdrawals for college as there is with a 401k (unless the 401k withdrawal is otherwise exempt from penalty).
I think that would be a recipe for misery. We know the girls’ grandparents have money, but to assume they’re going to give any to the girls for college would just not be a good thing. We’re operating from the assumption that we need to pay for them from what we’ve earned and not expect anything else.
In my heart I wish I could tell older DD to apply to her dream schools and hope the grandparents say “we got this”, but I don’t think that’s really anything other than a pipe dream, because the g’parents have never said anything along those lines. And that’s ok-that’s their money and they earned it!
Really, even if they had said something, I don’t think we would change anything unless they literally gifted us with a lump sum and said “use this for the D’s.” Sort of like winning the lottery…
^^Agree with @MotherOfDragons. We have come into inheritance money. I’d rather have the grandparents.
DS was an RA for 1 year. The benefit to him was 1/2 room only plus a stipend. All schools are different. His was very competitive also.
Daughter will be attending summer school . As for my original post I was really trying to identify ways we could save and it appears that an RA position her junior ans Senior year will need to be considered. Some good and bad news…daughter broke her foot in 2 places and really struggled at Mid-term… Since has withdrawn from Chem class.but will take at UND this summer. she has interview for summer position only as an RA … The unexpected cost of summer school is steep… But let’s hope good grades, a leadership summer position and her volunteering once her foot heals places her in a favorable position for the remainder of her college experience.
Youngest daughter down to three schools from 7… We are making progress.
We have 4 children that we put through college. This is how we saved money.
All earned lots of college credits during high school. Two were able to significantly reduce their time in college (3 years for one and 2 1/2 years for another. We made sure that the college they attended would accept these credits.
One got her associates degree in nursing at our local county college, became an RN and began workng at our local hospital in the emergency dept (exactly the department she wanted). At the same time,she earned her BSN at a local college. Her hospital helped pay for that degree. Her college degree ended up being quite inexpensive while most nuring students pay big bucks for a nursing degree.
These three also earned some pretty impressive scholarships. They also worked part time during school so they could cover some of their expenses (an excellent preparation for ‘the real world’).
We didn’t look for prestige. We looked at colleges that they could commute to and that would prepare them specifically for the degrees that they wanted.
Our youngest child is at a service academy. This was his goal all through high school - we did not especially encourage this but he wanted it badly enough to work very hard to secure a spot.
Two of our children have gone on to grad school. They paid for that by getting a spot as a grad assistant and also by working during grad school.
So, they were able to graduate debt free.
So, by a variety of methods, we put 4 children through college for well under $100,000.
It depends on the major also - if it’s something like Engineering or Nursing where a scholarship to a decent accredited school or commuting to the local (accredited) state school works, that’s one thing. If a more ‘prestigious’ (note the quotes) school is required for degree that needs some ‘pedigree’ (again note the quotes, say, undergraduate business) then it’s time to rethink the approach.
[quote=wiseacre]
As for my original post I was really trying to identify ways we could save [/unquote]
Sadly, other than the RA idea, there isn’t a whole lot. The best way to save is at college selection time. Once a kid is in a school, the options for lowering costs significantly are reduced.
@ ordinary lives… I agree and we are working towards that goal. Oldest daughter is a good student …Notre Dame cost wise is a stretch… But we saved… And qualified for FA… Our goal is no loans… If D2 comes in close to budget we will be very close in our no loan policy without touching our retirement… Our 10% contingency over budget will take a hit with summer school. We are devising a plan for summer school each year thru school sponsored activities and classes. If we can meet that goal… We will maintain no loans…
Getting a reality check on the job market early is the best way to save money once your kid is actually in college.
Double major which requires an extra year? Often there is no benefit to that. An extra minor requiring an additional semester? Ditto. Getting a BS in a business discipline only to discover you really need a Master’s degree to be employable? Figure that out before you enroll. A BS in Statistics or Applied Math is a better path towards a career in market research or analytics or any marketing/business discipline which requires big data skills- so don’t be shocked when your senior who is majoring in “marketing” discovers that grad school is the only way to launch the desired career. A BS in stats can get the job done with a four year degree.
I am amazed at the number of people who assume that their kid has the 'golden ticket" with a vocational type degree… who then grit their teeth when the kids with the Liberal Arts type degrees are getting the interviews and the offers that their kids are not getting. Psych is supposed to be a “useless” degree- except a psych major with good quant skills is in demand in advertising, media, etc. Econ is supposedly not as “useful” as Finance- except that a strong econ major can work at a think tank, bank, capitol hill, entry level management training program at any corporation, etc.
So if you’re worried about the costs now- imagine the shock when your kid discovers that the “vocational” degree requires a Masters.