<p>I don’t think that we are trying to compare families with substantial income differences. Rather, we are comparing aid difference as a result of life style choices. As previous posters indicated, some families are willing to spend money on expensive vacation while others would rather save the money in 401K. Some families would like to buy expensive cars while other buy used ones. At the end, the savers have to pay more to go to a school of choice while the spenders can enjoy the life and go to the same school with more aid. If the 6% rule applies to the 401K/IRA, this could be a comparison:</p>
<p>Family A - 300K in 401K/IRA</p>
<p>Family B: 100K in 401K/IRA</p>
<p>The difference in family contribution is $200K x 6% x 4 year or $50K. </p>
<p>If you have multiple kids, the $50K may grow to $100K. This is just a rough calculation. However, I think that savers are discouraged.</p>