We are searching data for your request:
Upon completion, a link will appear to access the found materials.
Parents' top financial goal: Saving to send their kids to college. It's more important than a getting a big-paying job, saving for world travel, or even owning a home. Here's how they're socking it away.
"We put any spare change, found change, lucky pennies into a jar and try to add whatever we can afford, $1 or $20. I don't want my son feeling as burdened as I do, and something is better than nothing!"
"We've been putting $50 per paycheck into a savings account since our baby was born. It may not end up being a whole lot, but it'll be a start."
"Visit BabyCenter's We Are Debt Free board. They are freaking amazing! Just make sure you're wearing your big-girl panties. They know their stuff, but they are blunt as hell!"
"I just opened a custodial account and am putting in $50 per month automatically. It's going to be a nice little chunk when he is ready to go to school, and with interest and maybe some grants I'm hopeful he will be more than prepared."
"Every penny we get back on taxes is going toward her future."
"Set up a direct deposit from your paycheck to an account at a different bank so it's harder to get to."
Don't aim to pay in full
"Our goal is not to pay for my daughter's entire tuition but to keep her from being strapped with student loans for 30 years after college. I think she should have some skin in the game with scholarships or loans or working a summer job to pay for books. I know I took college a lot more seriously than my friends because if I had to take a class over, it was coming out of my pocket!"
"We plan to have about one-third of the cost of college saved in 529s and pay for one-third out of pocket. Our children will have to figure out the last third through scholarships, work, or loans."
"My kids are expected to work hard in school and earn academic scholarships to pay for their college education. We will pay for room and board and other living expenses, but they'll need to earn their way for tuition."
"We're saving $50 per month. We know it's not going to cover everything, but that's by design. We want our boys to work for part of it, either through scholarships or their own money. We're setting aside some other funds to pay off student debt, but only if they graduate. If they drop out, the debt is theirs."
"We save $200 per month. I feel fine about this amount. My parents never paid a cent of my college. Even if I had the money, I wouldn't pay for their school entirely."
"I hope to do at least what my parents did for me: Pay for one year of school. I had $50,000 in loans and paid it all off. It's doable, and it made me be accountable."
"We expect our kids to pay for their own college, but we plan to take them step-by-step through the process and help where we can with housing, food, and a car."
Chip away with a 529
"We save $250 per month per kid in 529 accounts. Originally I was hoping to save $100,000 for each. Then after my second was born, I adjusted my expectations to $75,000. Now, with three, I'm going for $60,000. I vacillate between wishing I could afford to save more and being outraged that I have to save hundreds a month for 20 years to even scratch the surface of paying for college."
"We put $200 every month into our state's 529 plan. I feel this will give our child a good start. I was lucky enough to have my college paid for by my parents, and I want to do the same."
We are planning to fund the equivalent of four years at our public in-state schools. This works out to saving about $550 per month for each of our kids in 529s. I would love to have Harvard-tuition-level funds, but our retirement accounts come first.
"We put $10,000 per year per kid into a 529, the maximum that qualifies for a tax deduction. We'll be short by about $50,000 for each child, but by then the mortgage will be paid off so we should be able to cover the shortage."
"We are putting $100 per month for each child into a 529. I hope they'll do general ed at a community college, which is cheap, and then graduate in two years from a reasonably priced state school. It should be enough to cover a good portion of tuition, but not living expenses and other things. They should get jobs for that."
"I worked two jobs (one full and one part time) through college to finish without any student loans. My husband's parents had to declare bankruptcy after paying for my husband's out-of-state tuition. It was important to us to have a better plan for our child! We're saving $100 per month in a 529 right now, and we'll increase that by $50 each year on her birthday. In Maine, the Harold Alfond grant gives each child $500 if you open a 529 plan before his or her first birthday. We took advantage of that, as well as a matching grant for making monthly contributions."
Think tuition, not toys
"We save $500 at Christmas and $500 at his birthday. This is what my parents did – my sister and I never paid a dime for college. I even had some left over."
"It may be tacky, but I plan on giving my parents and in-laws a contribution form and asking them to consider making a donation at Christmas and birthdays in lieu of a gift. We really don't need more toys – I would rather the 20 bucks go into his account."
"When he was 4, a grandparent made an initial $10,000 deposit to his 529. And now, whenever the grandparents gift him any money, I give him $20 to pick a toy and put the rest into his account."
"I ask my in-laws and parents to put something into his Connecticut CHET account for birthdays and holidays instead of buying a ton of toys for him."
"We deposit all gifts into her account, which is locked for 18 years."
Save for … something
"We would like to save for our two kids' futures in general, though we plan to leave it up to them what they want to spend the money on. They might want to go to college, or they might prefer to go into the trades and use the money to start a business. Or they might want to be rock stars or missionaries."
"When our three kids were born, they were given $500 to open savings accounts. We give them each $100 per year to deposit, plus birthday money, Christmas money, and change from our jars – it all goes to them. I tell them all the time they are richer than we are. I don't know if it will be used for college. We feel they should use it for what they need in the future."
Pay in advance
"Our state has a prepaid tuition program, and the earlier you start, the cheaper you get it. Pay $188 a month for 18 years, and 100 percent of tuition and fees are covered at a four-year state school. If he chooses not to go, I get the money back."
IRA, all the way
"When I get my $5,500 reimbursement for daycare at the end of the year, I put it into a Roth IRA. I like this option because if he decides not to go to college, I have extra retirement funds."
"We put the max amount – $5,500 – into a Roth IRA each year for retirement and will probably take some of this out for the kids' college."
"We're saving for retirement. If we're in good shape on that front when the time comes, then we will have the option to support our kids' education from our Roth IRAs."
First your college, then theirs
"Hell no, I'm not saving. My kids better be brilliant or athletic. My husband and I have about $140,000 in student loans and will be paying those until our kids are basically done with college."
"We're concentrating on funding our retirement and paying off our student loans. First we'll get to where we need to be, then we will save as much as possible for the future of our two sons."