<p>A plan for saving for college. Some families can't afford to do this, but it offers a reasonable balance of frugal living and taking on debt for the families who can.</p>
<p>This is an excellent article. It’s pretty much what our family did (the 20-20-20) including having the grandparents forgo elaborate birthdays and Christmas. I would recommend this article to anyone with small children. Even with one already in college, the “birthday” and “Christmas” contribution continues to pay for for books and travel each year. The Staffords we will probably help the kids with if the market picks up in the coming years but it makes sense for the kids to do this since the rate is not too burdensome.</p>
<p>I think the article makes some good points: start saving as soon as you can and as much as you can. Realize that most people cannot save 100% of tuition up front, but that tuition comes out of savings, current income, and loans, have a financial safety. Maybe it should be posted in maternity wards.</p>
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Maybe it should be posted in maternity wards.
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<p>Amen, prefect.</p>
<p>I think we’ve all seen many save for college articles. It was hard for me to believe when my oldest was little, that the cost would truly be where it is now without income going up commensurately as well as scholarships and federal money. If my father were alive today in the government service job he had at today’s salary, it would not be possible to pay for a private college or OOS college out of his income and still have a living wage. It was possible but a stretch back then when I was of college age. Plus I got all kind of financial aid which would not be the case these days. They have tightened up on EFC and federal grant money. </p>
<p>We saved for our kids, and are using the approach that the article mentions. We are paying out of income, out of savings, and borrowing. As is my son. Plus he applied for schools where he had a shot at merit money. It’s just that the amounts are so danged high. It’s not so easy making that 6% these days. Many folks were cleaned out of their retirement funds, general savings, and college funds during the last few years trying to make about 5-6% which is not doable with savings accounts these days. </p>
<p>Also as you are trying to save for college, you are also trying to build a good home life in a nice neighborhood with good schools, pay for extra activities like dance, sports, music, theater.</p>