<p>Our kids are taking the Stafford loans in their names. IF (and I mean IF) we can help them with the repayment of those loans, we will. BUT they haven't heard that at all from us. Those loans are THEIR investment in their college educations along with their work during school and on vacations. I have to say, our kids are very grateful that we can help them with college expenses and neither one objected to being responsible for the Stafford loans when they graduate. Neither objects to working during school and working during the vacations (sometimes more than one job). Again...their investment.</p>
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<p>I don't entirely agree with this. As my wise old uncle who lived on a low income in a low-cost part of the country used to say, "Cabbage is cheaper in the city." Meaning the value of a dollar varies by region. There are high-cost areas, low-cost areas, and areas between the extremes. Wages and salaries for the same job will typically be higher in the high-cost areas and lower in the low-cost areas. Consequently, reference to a single national median can be extremely misleading. Someone living in a low-cost region could be living like a king on the national median income, while someone with the same nominal income in a high-cost region could be just barely scraping by and well below the median income (and median standard of living) for their area.</p>
<p>According to the U.S. Census Bureau, the median household income for a family of 4 ranges from a high of $94,441 in New Jersey to a low of $52,185 in Arkansas . But according to a widely used cost-of-living comparison calculator, a family of 4 making $52,185 in Little Rock, AR would need to make $95,057 in Secaucus, NJ to maintain the same standard of living. In other words, the $94,441 median household income in New Jersey buys just about exactly as much as the $52,185 median income in Little Rock, because the overall cost-of-living is 82% higher in Secaucus than in Little Rock. Everything---food, housing, utilities, transportation, health care---is costlier in New Jersey. Or as my wise old uncle would have said, "Cabbage is cheaper in New Jersey": money is cheaper, i.e., it doesn't buy as much. Nominal median incomes are higher but so are living expenses, so a lot of the "affluence" of New Jersey residents is illusory.</p>
<p>As best I can tell, however, this isn't taken into account in financial aid calculations. Two families reporting identical incomes and assets may be in radically different financial situations, depending on where they live.</p>
<p>moral of the story, move to little rock.</p>
<p>Wow, 100k is affluent...</p>
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$100,000 - $150,000 is hardly a high income for today's expenses.
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<p>I don't care where you live, if you earn over $100,000 you're living comfortably. I think a lot of people would be surprised how little income you could survive on. I can't help but wonder what some kids, on their $100k+ family incomes, are thinking when they complain about how tight their finances are paying for their four-bedroom home with a pool and two cars, and how unfair it is that they don't get their own car to drive or had to settle for lesser-brand clothes. Our family of six doesn't even break 40k. I will be the first in my family to have had the resources to get a college education, and I will break this cycle of poor finances. </p>
<p>My bitterness may be uncalled for, but I can't even begin to imagine a world where 100K isn't "affluent".</p>
<p>$100,000 is the average salary of two teachers in a family.</p>
<p>"I don't care where you live, if you earn over $100,000 you're living comfortably. I think a lot of people would be surprised how little income you could survive on. I can't help but wonder what some kids, on their $100k+ family incomes, are thinking when they complain about how tight their finances are paying for their four-bedroom home with a pool and two cars,"</p>
<p>Let's say that you have a job in Burlingame, CA and you make $100K with two kids. We'll say that you pay $15K in Federal taxes and $5K in state taxes. You go for the two bedroom, 1 bath 930 sq ft home at $595,000 at 1</a> Winchester Pl, Burlingame, CA home for sale - Yahoo! Real Estate</p>
<p>Assuming a 6.5% 30 year fixed with a $100K down payment, that's $3,000 a month or $36,000 a year for P&I. We'll assume $6,000 a year for property taxes given Prop 13. We'll assume that the couple isn't self-employed and use the lower SS/Medicate rate of 7.65% for $7,650 in SocSec/medicare taxes. So we're up to about $70,000 a year for a small house and taxes.</p>
<p>Let's say that the couple has 2 Toyota Corallas. $17K each that last six years or $6k/year (assumption made so that I can disregard maintenance). $1,500 for gas. $1,000 for auto insurance. $400 for home insurance. So we're around $79,000 for house, taxes and transportation costs.</p>
<p>If the jobs require dressy clothes, let's add in $1,000/year for dry cleaning and a budget of $300 for replacement clothes. We'll add $136/week for groceries for $7,000 a year (this is frugal according to a study that I saw).</p>
<p>We'll toss in $100/month for phone, cable and internet access for $5,200. So we're at $93,000 in expenses with nothing really fancy unless you consider cable and internet access fancy.</p>
<p>If you want to consider eating out, going to the movies, taking an extended vacation or several smaller ones, clothes and school supplies for the kid, maybe a health-club membership, it would be pretty easy to eat up the rest of the annual income.</p>
<p>Now if we talk about putting away $15K a year for retirement, maybe $5,000 a year for college expenses, it starts getting pretty difficult.</p>
<p>$100,000 may go far in some places. Or if only one person has to work. But a lot of people make $100K and don't feel wealthy at all.</p>
<p>Actually, I do consider cable TV a luxury. Not internet access, though! :)</p>
<p>I'm trying to imagine how you could spend $1,000 a year on dry cleaning...boggles my mind. I am so glad I work from home!</p>
<p>I felt remarkably comfortable with our $100K income...until we had two kids in college. Believe me...that $100K doesn't go very far when you are paying for two kids' college bills AND the expenses from home. But it won't last forever and I do feel fortunate to have a decent income.</p>
<p>You can be making a lot of money, much more than $100K and still not be living comfortably if you simply spend more than you make. I can tell you that a $100K income in the greater NY area is not going to go that far with kids in college. Cost of living does make a difference. Also it matters how long you have been making that level of income. Another factor is how much support you get from family, friends, community.</p>
<p>"I'm trying to imagine how you could spend $1,000 a year on dry cleaning...boggles my mind. I am so glad I work from home!"</p>
<p>$10/week x two adults x 52 weeks/year = $1,040/year.</p>
<p>Teachers in the suburban Philadelphia district are paid significantly higher than the average on this link. In my district a teacher right out of school is hired at approximately $40,000 with a Bachelor's degree....the scale tops out at 14 years and with a just a Bachelor's degree they will earn approximately $70,000 but with a Masters Degree they will earn $81,000 after 14 years. (Not bad for a 36 (assume age 22 at hire + 14 years of service!)) Most teachers have Masters Degrees. These salaries are for about 9 and 1/2 months and additional compensation is paid for coaching, club leadership, and other extra-curricular activities. The salary schedule is openly published on the school district websites. The high school day starts at 7:30 and ends at 2:15. Our district has block scheduling with 4 periods and teachers teach for 3 of 4 periods so that they have administrative time. The class size is from about 20 to 25 with some smaller.</p>
<p>The good news is that we have excellent teachers and any open positions have a great number of qualified applicants. Since the school districts are good the real estate stays stable and most students receive a good education and continue to college or other post-secondary schools. I'm not a teacher but do have a Masters Degree. My days are longer and I work 12 months of the year -- my salary is not as high as the teachers even for a 12 month year but it is still good. All in all, however I'm glad they are treated well and think it's a win-win situation in my opinion and I support good pay for teachers.</p>
<p>$1000 a year isn't a lot on dry cleaning if you have two professional spouses. What about commuting? The cost of express bus is $2400. Things like testing fees can add up quickly. $600 for IB fees, $320 (ish) for AP exams, then SAT/AP. My girls both have contact lenses and they add up for two girls. I don't consider those luxuries. Also extracurriculars. Son's karate is $150 per month, which is cheaper than most since he's been there for years. In places like New York, $100k isn't wealthy at all.</p>
<p>Teachers in our state get government pensions which are looking like a good deal compared to taking your chances with the stock market in your 401K.</p>
<p>Agreed $1000 a year for dry cleaning is easy! We have professional dress at my employer....oh how I wish we had casual dress!! Gas, cars, etc....$100k is not a lot for an annual income. We are comfortable but the thought of paying 2 tuitions as we will need to do after next year....is definitely going to be a challenge. Depending upon which college our younger daughter attends....I'm hopeful a public school...we will be borrowing lots of money! </p>
<p>Also agreed about taking your chances with a 401k in the stock market. I've been saving for 20+ years and this has been a very bumpy last 18 months.</p>
<p>H wears suit and tie to work nearly every day. Also have a kid who has to wear coat and tie to school. Throw in winter coats, and just a few dressy things and it can add up to $1000 a year at the cleaners easily. And this is only one spouse in professional dress. also I iron shirts which are usually taken to the cleaners. Here shirts are $1.15 per and that is a 5x a week expense. Not counting the dress shirts my boys need. I assure you that we own very little that needs dry cleaning outside of the suits and coats. Dry cleaning and attire is not somewhere to stint if your job requires a certain dress standard.</p>
<p>Not only am I glad I work from home, I guess I'm also glad I married a blue collar man!</p>
<p>We live in a pretty expensive area but manage to get by on considerably less than $100K per year. I would definitely feel pretty well off if we made that much.</p>
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<blockquote> <p>Teachers in our state get government pensions which are looking like a good deal compared to taking your chances with the stock market in your 401K.>></p> </blockquote>
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<p>I don't want to highjack this thread...but in MY state the teachers pensions are funded by contributions BY the teachers...not their districts, not the town, not the state...teacher's retirement is mandated deductions from pay to fund the retirement account for each teacher. OH...and in this state teachers do not contribute to social security and even if they work other jobs where they contribute to SS...their SS benefits are GREATLY reduced.</p>
<p>Now back to the topic. Some families are better at budgeting their money than others. My son said that one of the best (and hardest) courses he took in undergrad school was a personal finance course. He took it as an elective, but felt it should be a required course for all college students.</p>
<p>My brother lives in the bay area of SF and is shocked at the COA there after some time in the midwest. Of course, he now has two kids which really brings up the cost. BCEagle is right on with the costs. The other killer is preschool costs. With two small kids, he is finding that all the neighbors send kids off to preschool leaving his alone in the area. The cost of the many programs have sent him into a tailspin as many of these things were available at nominal cost where he lived before. My brother is tight with the buck, shops at yard sales and thrift shops, spends very little, but he is finding himself squeezed. And his tiny ranch that he is renting is not in one of the "good" school districts. In a year, that will be something he has to address.</p>
<p>Now granted, if he did not have the income, he would not live in the well built, in good shape home in a safe neighborhood. He would not have two reliable (bought 2nd hand) cars. His wife would not dress as she does for her job as she would not have such dress requirements. They would not have the computer and other officeware that they own. He does not have cable, high def TV (has an old clunker), and vacation is using Armed Forces deals and visiting family. He is the king of the freebies in terms of entertainment and resources there. He is still having a heck of a time putting money away on an income that is in the 6 figures. The housing cost is a real issue as he is paying double for half of the sq. footage he had in the midwest. Don't know what a financial consultant would have to say to them in terms of cutting expenses. Not much fat there.</p>
<p>I confess, $100,000 is affluent here in Toledo. </p>
<p>My son's private college tuition should be made up within two years of graduating (health sciences). If he changes hs major, we may be looking at five years to break even. It's a gamble we're willing (and financially able) to make. I'm sure some of his peers are wondering why we are wasting our money on a private school. After all, most of them are heading to Big State U, the school with the great football team. This web site has helped me realize that there are many great schools out there and many factors to consider when choosing a school.</p>