I think there is a disconnect. For some families, saving $60/month is a stretch – it is the most they can do. Will $60/month on its own pay for Loyola Marymount? Absolutely not.
However, say a family starts with an initial deposit of $500 and then saves $60/month for 18 years. At college move-in day, that family will have about $14000. For a Pell Grant family, that is the difference between affording college and not affording college. A Pell family will have to pay about $2000-$4000/yr out of pocket for their child to attend college at a public in-state option. A little more in some states. That 529 savings account will allow that child to attend college.
Now, if we’re not talking about a Pell eligible family, they should definitely be able to scrape together more than $60/month. A family higher on the SES ladder should be saving a lot more. Maybe $200/month to $500/month. But they should also be able to afford to save that much.
Yes, it will be a sacrifice for almost every family. Instead of driving that automobile that costs $400/month, drive an old vehicle and save for the child’s education. Or, if the parent prefers to drive a new car, buy the new car. And take the cruise. And buy the new $1000 iphone. Live in a neighborhood that requires a mortgage premium of $600/month. That’s all fine in my opinion.
But it is possible for most families, whatever their income, to save for college if they choose. Pell Grants, GS Loans, and need-based aid result in sliding expense scales and while $60/month may not help a $150K/yr family, it will certain help a $60K/yr family. If the family earns more, they should be expected to save more.
Speaking personally, I was not able to save at all for my children’s education. However, I did save. I used my savings to invest in a business. Though I have a business, my AGI allows me to qualify for the PG and allows me the freedom of lifestyle to homeschool one of my children and be very involved in the college search process for my oldest child. It does not afford me to also buy a new car, an expensive house, or an iphone. I could have those things if I chose, but my children would suffer for them. @“aunt bea” sacrificed such things for the benefit of her children. I think that was fantastic!