Have you started a college fund for your child/children

[herm4]

When my oldest was born, we did start a fund and then again with the next. Between the two funds, we have about $15,000. My oldest is now 12
and I keep wondering if I'm saving enough. They will probably go to state colleges and will be expected to contribute to paying for school, but we would like to help out quite a bit.

learning to live well without spending alot of money

[PrincessPerky]

nope, and I have no intentions of doing so.

I do however 'help' them save money (like I 'help' them brush teeth..as in I said so, heres why it is healthy for you, so do it.)

It is being brain washed into them (like I brain wash eat a fruit or veggie with every meal) that the fund is for 'big stuff' like a house, education (if you cannot get it from a friend or a book, or the internet, you may need to pay for it) or even a car, but only the need part!

[LuckyRobin]

I haven't either. They can earn scholarships and work their way through just like I did and their dad did. Or they can do their first two years through Running Start for free while still in high school. We will help some if able, but we aren't going to sacrifice our 401K contributions or dismantle an EF or anything.

[disneynutt]

I don't have children yet, but I have no intentions of starting a college fund for them. What if they decide they don't want to go to college? Besides, I'd rather have a fully funded retirement account. My kids can always borrow money for college. I won't be able to borrow money when I retire.

I've paid for college myself with work and financial aid and so did my husband. If we can do it, our kids can go that route as well.

[Marcymox]

Nope. I have no intention on giving my kids a free ride to college. They know this also. They must earn thier way to college by scholarships, grants, small loans, and VERY part time jobs. Thier job in life right now is to get the best and highest grades they are capable of.

I have invested alot of time, ( and some money) into helping my kids in school. I am involved, helping in thier class, assisting the teachers, but I also buy and borrow books, and I personally have tutored them, read with them, and signed them up for academic enrichment classes, summer school and college courses. Oldest Dd is talking AP classes in HS and I will pay for the AP exam. I will also pay for the ACT, SAT, and purchse preactice books for her. I will pay college application fees, ect. This is the only sort of investment I am willing to make. But the onus is on them to "earn" thier way to college with high grades.

In our state, if a student passes thier AIMS test ( the state written standardized test required for graduation) with all levels EXCEEDING- that student will have thier tuition paid for by our state at one of our 3 public universities. I'm confident if my kids can achieve this goal, I can come up with enough money to cover dorm fees and food , and books and other expenses from our savings as a well as a few meager scholarships we are applying for. I will do anything in my power as paarnt to provide enough help, tutoring, and assistance so my kids can exceed standards on this test.

I know that no everyone agrees with me, but this is what I came up with that I was comfortablewith when I knew, that with our income level, we would never be able to afford 2 college educations. We are pinching every penney to save for retirement- and we are worried it won't be enough.

[herm4]

Wow, I'm surprised that people are so determined NOT to help their kids! I had to pay for everything when I went to college and accrued a large loan, ( I was working full time and going to school full time. ) It was the hardest thing I ever did. I could never get enough sleep, buy enough food, study enough, etc.... I don't want that for my kids. On the other hand, they do not know that we have a fund set up for them, and know that money is always tight for us. We talk about scholarships alot and they work very hard to stay A students, knowing one day that may get them some sort scholarship. I feel like it's our duty, if we expect them to GO to college, we should do what we can to help them out. Funny thing is....since we started the college funds when they were babies, it has taken very little money to grow into quite a bit of money. I think their education is a wise investment. Just my 2 cents.

learning to live well without spending alot of money

[moneybags]

Wow, I'm surprised that people are so determined NOT to help their kids!

I agree. Since college is a requirement in our family, not an option, I plan on helping my kids as much as possible. We have money set aside in a 529. We don't add to it consistently, but it is a start. I also plan on going back to work FT before the kids hit college, so I can help them with that money. I had to pay for my own college, and I prefer my kids not to go that route. They will have to assist in paying, but I haven't figured all that out yet. I have a few years to go.

[KellyB]

My son is currently a HS Sophomore, I've been saving for college since he was born. I've saved thru all kinds of vehicles - he has a (FL) pre-paid tuition plan, savings bonds, a 529 plan, I even opened a Upromise account (after 5 years it only has about $130, but that'll buy a book I guess!). I'd never want to pay for the whole thing, I think it is better if kids have at least some financial responsibility for their college education. But I don't want him to start off with such a huge debt either - public colledge for 4 years will cost about $80K with room//board, etc. Private - forget about it! Price is skyrocketting, it is ridiculous. So I am aiming to help out with about 1/3 - 1/2, and he can foot the bill for the rest. Of course, since I only have 1 child, this is a little easier than if I had more.

[amberbamber]

We have three children and we have 529 plans for all of them. I'm also saving for them in an ING account. I am determined for my children to not have to pay 100% of their college, like I did and my husband. We are currently sitting in $25,000 of student loan debt. What a great way to start out our marriage?!?! My Dh's parents have/had the opportunity to pay for his college and chose not to, for reasons unknown to me. I would have much rather had a gift of not paying his loan from them than a honeymoon trip to Cancun.

[herm4]

Originally Posted by amberbamber

We have three children and we have 529 plans for all of them. I'm also saving for them in an ING account. I am determined for my children to not have to pay 100% of their college, like I did and my husband. We are currently sitting in $25,000 of student loan debt. What a great way to start out our marriage?!?! My Dh's parents have/had the opportunity to pay for his college and chose not to, for reasons unknown to me. I would have much rather had a gift of not paying his loan from them than a honeymoon trip to Cancun.

Glad to see there are others who feel the same as me!!

learning to live well without spending alot of money

[LuckyRobin]

I didn't say I wouldn't help my kids. I said I would help them if I was able but would not jeopradize my retirement or Emergency Fund to do it. What I consider help is different from what others consider to be help. This is my opinion and of course, you are welcome to disagree with it.

My children can live at home free of charge while going to college. I will pay for a meal plan if needed and books. I will help them search out scholarships and grants. That is helping them. But I'm not saving money for their college and I won't pay for a dorm room or an off campus apartment. If they want that, they'll have to figure out how to come up with the money. And it is very likely my children will end up going to trade schools anyway, my daughter in graphic art design and my son as an engineer or something mechanically inclined, all programs offered in the local VTC.

If they do choose college they will do an A.S. or an A.A. through the community college and transfer to the local university (it accepts the CC's A.S. and A.A. programs directly) to finish up. There will be no fancy private out of state school unless it offers a free ride. If I'm really lucky they'll want to do Running Start during their last two years of high school, where you get your A.S. or A.A. at the same times as your high school diploma and it is paid for by the state.

Throwing money at a child's education is not "helping" them, it is just giving it to them, and it does not create independent adults capable of making it in this world. It creates the huge sense of entitlement that we see today in the whole credit mess and mortgage debacle. Just giving them money to go to school is doing it for them, not teaching them to do for themselves.

Most young adults do not value their education while they are getting it because they did not have to work to get it. Kids constantly skip classes, drop classes and get incompletes because after all, it isn't their money being blown, it's Mom and Dad's money. And they don't really know what they want to do anyway, so a few dropped classes here and there don't matter much to them. Only a focused few are an exception.

If you want to pay for your kid's education, fine. More power to you. But I'd hope that you'd make them at the very least come up with half of it, either by working and saving their own money, or getting grants and scholarships. Giving it may give you satisfaction temporarily but earning it will give them satisfaction for a lifetime.

[herm4]

Well I would have to respectfully disagree with you about, pretty much everything you just said. I think you have to instill in your children from the beginning, when they are very young, the value of money. This has been a frequent discussion in our home. My kids know how important saving is to us and how careful we are with our spending. They are aware that we budget money for everything. They even help me clip coupons and look for the best deal when we're shopping. We often talk of the importance of college and making the most of it! I can't imagine assuming my kids will just get an AA degree or just go to a technical school. I want them to know that they can pursue whatever career goal they want and if we can help them, we will. Again, just my 2 cents.

learning to live well without spending alot of money

[disneysteve]

We have one daughter, almost 12. I started her 529 plan in 2002 and currently have about 22K in the account. My parents paid most of my college expenses and I hope to be able to do the same. I finished college with just $14,500 in loans. Of course, then came med school and the final loan total was $102,000.

With all due respect to others who feel differently, I am not a fan of students having to have jobs to support themselves while in school. I had many friends in college who were in that position and it always seemed to be a huge strain on them educationally and emotionally. When she is in school, I want my daughter's focus to be on her studies, not on working overtime so she can afford her books.

That said, I absolutely agree that your own financial well-being must come first, including retirement savings. We are fortunate to be able to have our other needs taken care of and still save for college. If you can't do both, though, college needs to be the lower priority.

[mom-from-missouri]

DD#1 got a bright flight scholarship, and also was awarded scholarship money. She is a triple major, yes I said triple-will graduate in May at 20 years of age. She got out of high school with an early out at age 16. She currently takes 18-21 credits a time, with permission from the dean. Her college money will either be a down payment on a nice house, or buy a smaller house or a fixer up er. DD#2 got her college money at the same time. She has yet to take a class, and has spent every dime of it in a little over 2 years with nothing to show for it. They both got their money after their mother was killed. The court set it up so that they were to get it at college age, despite their dad wanting it set up differently.

Needless to say, we learned from that. So, DD#3-5 are not even aware they have college money. Their money came also from a court case that I won years ago when the gas company burned down my house (long story short, they blew it up by removing live gas lines that they thought were old gas lines because they were on the wrong side of the street).

I want my daughters to learn the value of money, so they each put money into their college savings account and mutual fund accounts every month. They are not aware they have another account. It is set up to give them each a lump sum each August after they start college. It comes to me. If they need it, I will give it to them. If they don't need it, I will reinvest it and not even mention it to them. Then they can have it when they buy a house, are more mature, or whatever the case may be. Right now its in an annunity fund. All said, those 3 should each receive around $100,000 over 5 years. I hope they each also get a bright flight for the first 4 years. Right now one wants to be a vet, 1 go to medical school and the other a teacher.

[LuckyRobin]

Herm4--As I said, you are perfectly welcome to disagree with me, but..."Just" a technical school? Wow. Sounds like there is a little bit of a bias there. I know people making $100,000, $200,000 or more a year who went to "just" a technical school. Plumbers, architects, electrical engineers, mechanical engineers, graphic designers, people who build computers, and create software. And I know people who spent $80,000 to $100,000 on their art history degree at some fancy school who volunteer at a museum and make their living waiting tables because their fancy degree didn't relate to the real world, or teachers pulling in less than $30,000 for doing pretty much the most important job there is.

Technical colleges have come a long, long way and I hope you won't overlook them if the field your child wants to go in would be better served at a technical college. Limiting your child can go both ways if you insist on a only a university. Try not to dismiss it out of hand. And as I said about the A.A., you start at the CC, get the A.A. there, then transfer to a state university to finish.

As for disagreeing with almost everything I said, does that then mean you would jeopardize your retirement and your emergency fund to pay for your child's education? Or is that the almost part?

You are to be commended for teaching your children about money from an early age. So did my parents. Of me and my sisters I'm the only one it took with. Just cause it was taught, doesn't always mean the children learn it, unfortunately. And it also doesn't mean they won't take certain things for granted.

My own kids have been taught exactly the same way and already at 11 and 7 I can see that one will throw away her money on whatever if I let her and the other will hoard and save his to the point of being a miser if I let him. Doesn't stop me from trying though. We have to keep at it and hope it sinks in.

Regardless, I am enjoying the debate and hope I don't engender any ill feelings. I do understand your point of view even if I don't agree with it.

[LuckyRobin]

Mom-from-Missouri--Can you explain what the Bright Flight scholarship program is about? It sounds intriguing!

[TBH]

Originally Posted by KellyB

I'd never want to pay for the whole thing, I think it is better if kids have at least some financial responsibility for their college education. But I don't want him to start off with such a huge debt either.

This is pretty similar to my philosophy. My father paid for almost my entire college education, and I didn't appreciate it until much later. I want my son to pay for some of his schooling.

That said, I want him to feel that he can accomplish anything he wants. If he has the aptitude and desire to pursue a certain career path, I want to be right behind him. I've made sure all the accounts we've opened up can also be used to pay for a technical school if it turns out that he'll make a great electrician or something.

We started a pre-paid plan and a 529 investment account and a Upromise account for him, all when he was about a year old. We contribute a small amount monthly to his accounts. We've been very fortunate because his grandparents have also been contributing.

At the moment (he's 3.5) it looks like we're on track to pay for most of a public four-year education. If he wants to go to a more expensive school, I'll sit him down and explain exactly what it will mean to graduate with loans, and I'll try to make sure he pursues a major that will give him decent earning potential.

Either way, I intend to start him saving a percentage of all his earnings as soon as he's old enough to mow lawns, shovel snow, babysit, etc. When he's in high school I'd like him to get a more formal job during the summer, at the ice cream parlor or as a camp counselor or something.

We'll see. He's so little, I am not too worried about it, and I intend to have only the one kid.

Interesting thread. I like hearing from those who don't intend to save for it. You all have some good arguments.

[TBH]

Originally Posted by LuckyRobin

And I know people who spent $80,000 to $100,000 on their art history degree at some fancy school who volunteer at a museum and make their living waiting tables because their fancy degree didn't relate to the real world, or teachers pulling in less than $30,000 for doing pretty much the most important job there is.

I wish I had gone to a tech school, or at least that I'd pursued a more practical major. My degree cost less than $30K total but it was useless. I had to go to grad school to get some credentials. Even then, I'm not too far off from those teachers you mention--I'm a librarian. I won't get rich doing this, but it's good steady work and I'd be happy if my son chose a similar service profession.

[moneybags]

Giving it may give you satisfaction temporarily but earning it will give them satisfaction for a lifetime.

I payed my entire way through college, and believe me, it has not provided a lifetime of satisfaction. I am thankful I completed my degree, but it was a long winding road to get there. I would have preferred help from my parents. They were in no shape to provide it, but fortunately I am able to assist my kids, and I will.

I am not a fan of students having to have jobs to support themselves while in school. I had many friends in college who were in that position and it always seemed to be a huge strain on them educationally and emotionally.

I totally agree with this, and I include high school with it. I'd rather have my kids active in clubs, sports, etc. during the school year, than working.

[mom-from-missouri]

Originally Posted by LuckyRobin

Mom-from-Missouri--Can you explain what the Bright Flight scholarship program is about? It sounds intriguing!

It is a merit-based program that provides an annual scholarship award to top-ranked high school seniors to attend approved Missouri postsecondary schools. Home-schooled students or those who have obtained a certificate of high school equivalence by passing the General Educational Development (GED) examination are also eligible for consideration. Eligible students must receive the scholarship during the academic year immediately following their senior year in high school to maintain eligibility. The deadline for submitting a completed scholarship application and all required materials is July 31 before the upcoming academic year.

A score of 30 or higher on their ACT will also get the student an award.

The amount awarded normally runs between $2000 and $3000. I am not sure where the funding comes from, but it may be from the lottery and casinos in the state. It started right after MO got legalized gambling which was voted in. On the ballot for the legalized gambling, a certain percent was to go for education on all levels. The amount is adjusted yearly according to the MO state budget.

Then, there are numerous additional scholarships that are awarded to those who qualify for the Bright Flight. DD#1 has several of those also. She lives off campus and it is enough to pay for her tution, books, and her half of rent and utilities. We carry her health insurance. All she has to pay for is her car insurance, fuel, clothes and food. She does work a few hours a week to cover those expenses (although she could take it out of her college fund-but likes to watch the interest grow in the fund instead)