<p>This probably won’t work in your situation, but might help someone else who reads this in the future. My ex-H and I both worked except for maternity/paternity leaves when the kids were born. We had pre-tax day care accounts where we could stow up to $5,000/year pre-tax from our paychecks to pay for child care expenses. We took every single one of those pre-tax checks and put them in the college accounts over the years. It is big $ when they are small, and shrinks as they get older and the child care costs go down. But we ended up with over $100,000 in each kid’s account by the time they went to college due to investing early (and one good stock investment as well that was particularly helpful). But even with out that one extra-good return, we would have been in great shape for in-state tuition, and ready to make a big dent in private/OOS. I tell every new parent I know to think about this… the money is already gone from your paycheck when you get those refund checks anyway.</p>
<p>Looking back, yes I wish we would have saved more for college, but not at the expense of the great private grade and high schools the kids have been able to attend and the family experiences we have been able to have over the years. If they had gone to the local public schools we would now have a paid off house, and a bigger college fund. But I would rather they have 16 great years -both in schools and in life experiences for all of us, than 12 very lean years so they could have 4 years at a tippy top expensive school - which we would have been able to afford if we hadn’t done all the rest over the years. they are both at one of our in state schools and doing just fine and will graduate with no loans. </p>
<p>One of the best things we did was buy the state of ohio prepaid tuition dollars when they were babies that increased at the cost of tuition in the state. While our friends in regular 529 plans were faced with the uncertainty of the stock market, we were faced with a guaranteed increase that always kept pace with the rising cost of education. this is no longer available in Ohio but something like this may be available in your state. Our plan allows us to use the funds at any school so you would want to check carefully with your state’s plan.</p>
<p>Thank you for all of your kind replies! To answer some of your questions, for my career I did tech support and DB admin mostly. I think I’ve aged out of the IT field, but I would hope that I could at the very least find a PT job to put away a few hundred more for expenses.</p>
<p>For those of you curious as to why we are only putting away $15/wk into our childs plan, here is a peek at our April budget:</p>
<p>Prop Tax: 200
Heating: 146 (will be glad when winter is over)
Cell: 90
Electric: 56
Water: 55
Cable/Int: 117
House Ins: 120
Car Insur: 127
Cloth/Pers 190
Newspaper 12
Dental Ins 42
Cash 100
Gasoline 113
HH/Food 483
Dining out: 23<br>
Invest 100
529 60
Kid Activi 120
Home Maint 71
Church/Char 310</p>
<p>Total: 2535</p>
<p>Our take home pay (after taxes, health ins, 401K etc.) is about 2850/mo, so you can see its doable. We actually have two extra paychecks during the year as well for another 2850, but I dont budget for that. I usually will sweep it over to savings/investments for things like our car tabs, auto repairs, medical bills, etc. Any excess from our monthly bills go to investments, savings, college or will stay in checking for a float. Our cars still have a lot of life left and we have no mortgage, so Im not budgeting for those yet specifically. </p>
<p>Observations: it seems like our clothing/personal bill was kind of high this month, but I took advantage of sales and bought all my kids winter/fall stuff. Plus haircuts are included this month too. This amount ($190) isnt typical. I still need to do one small grocery run for about $100 and we will need one more gas fill-up (around $50).</p>
<p>I see a few places to make cuts (i.e. cash, cable, food, eating out). Weve reined in the eating out this month. I dunno, I dont want to punish DH too much. 
</p>
<p>As far as vacations go, they arent really on our radar. Both DH and I grew up never taking vacations (not enough money), so I dont feel like Im missing out. I think we will take some weekend trips, camp, etc. and still find ways to get away.</p>
<p>Im worried about the activities because of possible scope creep. I think we will just keep one when she starts school. I dont want to overcommit her time anyway.</p>
<p>A few thoughts:</p>
<ol>
<li><p>consider buying U.S. Savings Bonds, I series (inflation-protected) for your daughter. They won’t technically be in a 529, but you sound disciplined enough that you would know what they were for. The 529s do have certain drawbacks, and the tax advantages only help when you have enough money in there, generating enough investment income, that you would be paying significant taxes on the child’s investment earnings.</p></li>
<li><p>Be a savvy consumer of kiddie extra-curriculars. They do have some value. But some of them really just prey upon well-meaning parents who are eager to see their kids develop, and who want to give their kids every advantage. Less is more. For the vast majority of kids, a good church music program (if that’s your thing) can replace a lot of pricier music and theater options. Town rec sports can replace private club sports. Consider Girl Scouts, which starts with Daisies in kindergarten. Most kids are not prodigies. With the numbers you’ve cited, I would suggest a flip-flop of EC spending and college saving percentages.</p></li>
<li><p>About your role as a SAHM – it’s easy to get caught up in feeling like college is the only thing that will ever matter. It’s not true. And the private college vs. state college distinction is even further removed from being a life-or-death matter. Higher ed was always expensive, but the stakes were lower for those of us who are now in our 40s and 50s. Prices have skyrocketed while the percentage of kids successfully graduating in 8 semesters (or even 10 or 12 semesters) is way down. People can really mess themselves up with debt today, or by starting collegiate programs that will become too expensive to finish. You are smart to plan ahead. Recognize that your daughter (as precious as she undoubtedly is, and as shocking as this may be to hear at her tender age) is only one person in your family, and college is only one part of what the family wants to do for her. Recognize that it’s a new era, and your state schools and county college may deserve a closer look, as her academic needs and abilities emerge over time. That was a tough nut for me to crack, having grown up in the northeast with the private school snob factor in my blood. But I have been pleasantly surprised. Remember that if your child emerges as an extraordinarily qualified student, other people will notice it, too, and there will be merit scholarship options. If that doesn’t happen, she may not need the priciest schools.</p></li>
<li><p>remember that going away to live in a dorm is a luxury, and not always needed for all four years.</p></li>
<li><p>consider one day working at a college, with tuition benefits, if this is at all a possibility on the basis of your interests and experience. If so, you can begin to think and explore how you might one day make that happen.</p></li>
<li><p>If you live in a state or a region where the public colleges stink, the commutable college options stink, or the state schools are overpriced, consider whether a relocation is feasible. You have over a decade to work with. While that may sound drastic, if a change is consistent with better economic opportunity for the parents and a continued happy life as a family, why not at least do some research and shop around for another region or state? It can make a huge difference.</p></li>
</ol>
<p>Thanks for the info on savings bonds. That’s a good idea. Our 529 plan is one of those target ones (gets more conservative as she gets closer). Our state has a good (or good enough) state colleges, but they seem to be more expensive than other states. We do have reciprocity with neighboring states, but who knows if that will continue. So far nothing has changed though, so who knows?</p>
<p>It’s hard to get out of that private school mentality. I was lucky though because for one thing, school was a heck of a lot cheaper 25 years ago. Plus, I had a big family and our family income wasn’t high, so I got a lot of financial aid. I realize things are different now though. </p>
<p>BTW, no more future children. :)</p>
<p>This may be an unpopular opinion… Your charity/church donations seem to be high, possibly you are tithing? I don’t know what your religious convictions or conscience requires you to do, but if there’s some leeway, perhaps this amount can be decreased and diverted towards college. I know some people don’t consider this negotiable, but something to think about now or maybe in the future. When you apply for financial aid, charitable contributions of any type are considered a choice (like many other expenses such as consumer debt), so they won’t increase your aid.</p>
<p>I think there may be some sort of tax break on the interest earned on US savings bonds, if the proceeds are used for higher ed. I don’t know the details, but it would be easy enough to find out. If so, they might be just as advantageous as a 529.</p>
<p>With the wild ride the market has given us since 1999, who knew that I bonds would be the champion performers in many people’s college portfolios?</p>
<p>I start work at 5:30 and leave (most days) at 2:30 so I can get kids where they need to be after school. H drops kids off and comes home later. Works for us. Occasionally I need to travel or work later and on those days H picks kids up or we make other plans. WRT college expenses, you do not have to be full pay. It is possible to get merit aid at many schools, maybe not tier 1 schools, but good schools.</p>
<p>I’d just like to say that this is a very informative thread! Thanks to the OP for starting it…and thanks to everyone for sharing their ideas & suggestions.</p>
<p>Not sure if you have two cars or one, but when my high milage SUV died, I bought a Prius. Saved me almost 2/3 in gas than what I had been spending. It was enough to make the prius purchase affordable.</p>
<p>The amount in church/charity is a pledge we made, so it will be a monthly expense for the rest of the year. Our parish accepts time, talent or treasure, so I guess an option is is to swap $ for volunteer hours. There are no % requirements, but I can’t see wasting money on cable and food in order not to pay it. That doesn’t seem right.</p>
<p>Mamom- we have two vehicles. I stay pretty local most of time, so I’m not too concerned about replacing my current car with an old econocar or something.</p>
<p>FWIW, I am really not one to comment on someone else’s budget (I’d hate for someone to nitpick mine) but IMO I’d nix the newspaper and you could almost double your monthly savings for your dd right there. Besides the green factor, most all content (as well as manufactures coupons) can be found online for free.</p>
<p>When you finish your current church pledge, you can decrease it for 2014 and beyond. If you give 110 to your church and 200 to the college fund, that will be at least 36,000 in 13 years. You can still donate time and treasure. Combined with the 25k you already have, that’s 61k without interest. If you add your husband’s bonuses, birthday gifts, etc., that’s even more</p>
<p>I think I will do the following:</p>
<p>For the next 6-7 mos. our heating bill will be $100 lower. Our electric bill will increase a little bit in the summer, but only by about $30/mo for a couple of months. That should be an extra $600/yr or so.</p>
<p>I will cut out one of DD’s activities. One of her activities sessions end shortly so I don’t think I will renew. That will be at least another $600/yr.</p>
<p>I’m not sure what kind of tax refunds we will get in the future. But I think we can put away $1500 if things stay the way they are.</p>
<p>That just leaves us a little shy of what the simple calculators say we need to pay for state school ($350/mo). </p>
<p>I think that’s OK. There’s nothing wrong with state school education. Maybe a PT job in the future will allow us to put away a little more and we can reassess once DD actually starts school. </p>
<p>Thanks for helping me think this through. I really needed to get some things down on paper to get everything committed. I think I will up the auto-contributions for her savings. It can be too easy to just go with the flow and before you know it another year has passed.</p>
<p>Woodsymom, I agree with prefect. Your charitable contribution is about 64% of your monthly food budget. You cannot afford to give that amount tbh. I’m sure your church will understand if the bulk of your donation comes from sharing your time and talent.</p>
<p>If you don’t mind, I also noticed that your monthly home insurance is $120 which is a $1440 annual premium. I don’t know the details of your home. Maybe you have an expensive home despite your income but is that the best rate you can get? Your $1524 auto insurance premium for 2 cars (127 x 12) is also high. Maybe it’s your driving record or your address but I suggest you try to shop around for one with the best coverage and lowest price.</p>
<p>I also agree with blueiguana. Drop the newspaper subscription. Get your news online.</p>
<p>OP - you talked about making deposits automatic - which is truly the best way to go. If I can recommend The Automatic Millionaire - a great way to save without doing a thing.</p>
<p>I have everything set up automatically not only do I not pay bills, the savings accounts are all taken care of and the money left is the money I have.</p>
<p>Also, Dave Ramsey has a great book out there about paying off debt, setting a budget and walking through baby steps to financial freedom.</p>
<p>The one thing to remember is to not forget about retirement. In my view, it’s more important to save for retirement then college. I haven’t always followed that rule, but I should have. </p>
<p>We all want the world for our kids, but you may find out there are a lot of advantages and options beyond the most expensive college. And I couldn’t agree more with the previous poster who says the 18 years before college is an important time too, it isn’t all about college.</p>
<p>
Eyemamom, what do you mean by this?</p>
<p>I prefer the OP buy a money management software where she keeps track of all the household income and expenses and NOT to automatically pay a bill without scrutinizing the bill for any errors or unauthorized transactions.</p>
<p>I meant we set up our bank account to pay our bills. We don’t use personal credit cards often, we really just pay the mortgage, electric, cable & insurance. We’re boring now, even without trying to I even spend roughly the same amount at the grocery store each week. I used to joke that I could put anything in there and it would still come out the same. We’re working on paying the mortgage off so trust me, it’s a race to the mailbox once a month to just look at the new balance - lol. Electric is on that budget plan where you pay the same each month and cable and insurance don’t change. Then we have the savings automatically withdrawn and sent off to various savings accounts - retirement, college, vacation, money market. </p>
<p>So yes, we glance at the bills - or rather hubby does, but we don’t have to sit and make a monthly budget any longer. The occasional medical bill or other expense that comes up usually has to get a check. </p>
<p>But I’m farther down the line, I’m not trying to get a handle on things in the budget. My point is the more automatic you make it, the less painful it feels and the less work something is the more likely you are to keep it up. </p>
<p>It’s why the gov’t takes money out of your paycheck as you go along and not at the end - most people wouldn’t have the discipline to put it aside, and there would probably be a revolt if people had to actually handwrite that check.</p>
<p>Nothing to add but I wanted to say welcome to you Woodysmom! I’m another mom of younger kids (grade 1 & 3). I started here on CC to help my SIL with her kids college search and have become addicted! People here are very informative and helpful! Best of luck to you!</p>