Ha!! Forgot about taxes. Regardless, even if this family pays for 4 years of school for 2 kids using their current income, they should still have enough money left to live. This salary is still more than most. I have friends who do this on a lower salary. They may have to make some serious lifestyle changes. Have they saved any money for college ( this may be posted already)?
Anyway, my point is that this income is high enough to be able to pay for college. It reminds me of people that I know who want FA despite living in a mansion, having a beach house, and a boat.
@Upper middle class parents are just doomed to keep working hard and make sacrifices or make their kids sacrifice dreams of top colleges. "
Top colleges are luxury items. That’s like saying that I’m “doomed to work hard and make sacrifices” if I want to fly my kids first class to Europe for three weeks.
Yep. Why shouldn’t sacrifices be made? Look, I wouldn’t trade my upper middle class lifestyle for the world with someone poor just so I could get better financial aid for college. That’s like saying I’d trade places with someone in prison because they don’t have to pay the electric bill and they get their meals for free.
WorryHurry - nothing prevents a family making 400k to consciously live below their means. if they don’t want to “sacrifice” like that, fine - but then don’t complain.
@Pizzagirl I’m talking from percpective of two parents busting their chops to make $200k plus but guess if you have a decent home in a safe neighborhood with good schools and live able commute in NY or SF then $400k would be in similar situation.
most of the people living in NYC are making way less than 400k and are living in safe neighborhoods. Are they all livin on the UES or UWS? No, but they are not living on the streets.
If you are making 400k and have been making it for 16 years you minimally have a house and a retirement account if for no other reason than to get a tax benefit
I suppose it is possible that the OP’s family has continuously made poor investments with their disposable income, or that they eat lobster, filet and truffles at every meal. But outside of some very extravagant purchases and/or bad luck with investments, I can’t imagine sixteen years of $400k in income failing to result in at least $250,000 in liquid savings.
And if the household is still making that kind of money, they should still be able to afford the ~$125k per year in college-related fees that would come as a result of having one kid at UChicago and another at Princeton, UPenn or UChicago.
Taxes might make things a bit uncomfortable, but I imagine reasonable adjustments could be made.
@mommdc you may be on the right track. Also if they had to buy into a practice or office that would also prevent them from saving. This can cost $500,000 or more.