Have you started a college fund for your child/children

[LuckyRobin]

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

[TBH]

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]

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]

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)

[mom-from-missouri]

Mo also has another program, and for the life of me I can't think of the name of it right now...But, students earn dual credits while in high school-so that when they graduate from high school, they also have a 2 year associates degree.

[Tree0164]

We are saving in a 529 plan. Only $50 a month for each of the kids. I am thinking of stopping it on one of my sons since he is autistic and just funding a special needs trust for him with mutual funds since I doubt he will be going to college.

[herm4]

Lucky Robin,

I didn't mean "just a Technical school", I meant "just a couple of options of schools ". That is how I took your post. Sorry for the misuderstanding. I am aware that lots of people do really well from technical schools. I actually have a degree from a technical school (Respiratory Therapy) and it paid the bills for alot of years. My brother is a pilot for a major airlines, he never graduated from college and makes about $350k a year. I know there are lots of options, I just don't want my children to limit theirs based on finances. Which is exactly what happened to me. I went to a cheaper school, got a job that really wasn't what I wanted to do, all because it (the school ) cost the least. I guess we will have to agree, to disagree.
But, I have enjoyed the debate also!

learning to live well without spending alot of money

[FrugalFish]

My DD is only 18 months. Finances are tight for us right now, but we will put a little aside here and there. We just cashed out a small whole life policy that DH had (very small) and that will be the real start of her savings. Plus MIL said she had a small amount she wanted to add from a small inheritance she just received (not holding my breath about seeing it.)

We'll save money for her college, but not a lot necessarily separate from our other savings and investments. What we pay will depend on if/where she wants to go to school and how motivated she is. If she turns out to be a very bright, go-getter, I won't let a lack of funds be the thing that stops her from achieving her goals. OTOH if she's not really sure of her direction, perhaps it's better for her to let her tough it out and figure it out on her own. I can always go back to work for the sole purpose of financing her college.

[MonkeyMama]

I am mostly with Lucky Robin as that is how my family is.

My parents raised me with the value of money from a young age, yes, that is why putting myself through college was not a huge burden. Working through college? I didn't find it took away from the experience at all. I was in the clubs and worked, and even took 1 month off every year just to veg. It can be done. But since it has worked for our family that is how it will be for our kids (as their parents and grandparents before them who worked their way and paid for their own college).

I am a lot with FrugalFish as well. We are saving money, but I am not going to save a ton up in the kids' name. We expect them to do it on their own but we'll be there to help. We are open to the fact that they may not be able to work as much as we did through college, or that they might "need" a pricier degree than those before them (my dad is an engineer and I am an accountant and we went to community college/state and hardly spent anything on our degrees, but these are well-paying careers.). But since we have saved so much money on college the past 2 generations I am not too worried about them. They will have opportunities and resources tenfold what we had. It's not in their name specifically because they aren't entitled to squat. But if they "earn" it we will have plenty of means to help them. The idea of expensive college doesn't scare me too much because we didn't have to pay much to get well paying jobs and certainly have the money to help them (much more than our parents did, etc.)

For now we save $25/month for each kid and imagine it to be plenty. It's in their names to avoid taxes and grandma has a 529 with way too much money in it (more than my whole college cost pretty much - books and all). So regardless how we feel they will get oodles of money for college it seems. But if the money is there, so be it. My parents told me they would help me for college but not if I lived in the dorms, went to private school, didn't work and contribute, etc. So it will pretty much be the same for our kids. We just have some of the same expectations. We don't want them to run up a ton of debt and we aren't going to shell out six figures for their education. But there are a lot of other ways to approach it. (In my case my parents would have helped much more but I didn't ask for it/need it. It is a great feeling to be able to take care of yourself. Sure college was HARD but it also made me very strong. I wouldn't want to take that away from my kids).

Oh it probably doesn't help that I know way too many peers who squandered their fancy degrees and partied all through school (that is an expensive party!!!!). Most of the problem I see was parents eager to mortgage their home so their kids could go to the BEST Schools though they had no idea what they wanted to do. IT was really more of a parental pressure thing than a lazy kid thing (somewhat the culture in the area - a lot of successful parents who push their kids way too hard). So if I am going to help my kids become a doctor or something I want to sit back and make sure that's REALLY what they want. If they don't know what they want to do they can work and go to community college while they think about it. Anything more would really be a waste if you ask me. I know SO many people who went to fancy schools for degrees they will never use and then had no money when they figured out what they wanted. They were snobby to me that I went to State and that is where they ALL ended up for Masters and "real" degrees. Ironic. I rather the kids take their time at State and C.C. and then go to that fancy college when they are sure what they want out of life.

[PrincessPerky]

That last paragraph regarding the 4 year party, is exactly why I wont 'require' my kids to go to college, if they choose a career that needs college then of course they need to go, but I am not paying for a 4 year party, just cause they are doing as directed.

Actually even if they study the whole time, I don't want my 18 year old doing what I said...I hope to raise them well enough to make the choices they want for the life they want (college certainly doesn't help me run a house and home educate!)

Though I have to say that if I had more money I would put more away for my kids (or rather give them an allowance or job around the house or something..prolly 'side job' so GMC would get more money, and UE wouldn't get any yet. and of that money they would be given the chance to practice the habits of donating/saving, and spending)

[Exile]

I don't have kids but I would like to weigh in on this matter anyway.

Personally, I believe parents have the responsibility to do whatever they can to help put their kids through college and to begin saving for this time several years before the time comes. After all, a college degree is no longer a luxury. This is not to say that students should just sit back and not do their part. They can also beat the bushes for financial aid and work during the summer. But they do not need the distraction of worrying about finances while they study, and knowing that their parents are behind them is a great psychological boost as well.

For those parents who have no intentions to help put their kids through college, please let them know as early as possible, i.e. when they are still in elementary school. The least you can do is contribute by working with your kids in seeking scholarships and other forms of financial aid. From the time I was in grade school, my parents led me to believe that they would fund my college education. But right after I graduated high school they informed that they weren't going to assist me after all. They had never put away money for this purpose. They just thought they could improvise when the time came.

Interestingly, here in the Philippines, which is supposedly a "poor" country and has many social flaws, one cultural practice that I do admire is that parents do whatever they can to pay for their kids' education, and their children for the most part are grateful for it. Consequently, pre-need plans for college are big business here. By way of contrast when I was growing up in the U.S. the ony pre-need plans I ever heard about were for burials.

Over the years as a working adult, I acquired about 2 years of college credits. But I did have the satisfacation of helping finance my wife through her bachelor's and master's degrees. What more so must be the feeling of pride for parents who have done the same for deserving family members.

[Scanner]

I think a moderate compromise here is possible and one I adhere to.

I have told my 10 year old that we will pay 2/3rds of his education. That will essentially be tuition, fees (which appear to go up every year so they don't raise tuition) and car insurance for a clunker/bomb. He will be responsible for the other 1/3rd, which is books, room and board, and spending money.

That shouldn't stress him too much and I figure will amount to a 10-15 hour/week part-time job during the school year and 40-60 hours/week during the summer, which is doable for an able bodied, male 19 year old.

Besides, unless he plans to go to professional school, I'd rather see him work part time and get a 3.0 or even a 2.7 than not work and get a 4.0. Nobody looks at your GPA (besides medical and law schools). . .but every employer considers your work ethic.

Essentially, a degree is a degree is a degree.

And fiscal responsibility is a skill that everyone needs to have - and it starts with an awareness of how much something costs.

We have about $18,000 in a 529 and Education IRA's for our 10 year old and 4 year old

Yes, we are behind. At least I feel so.

[herm4]

My neighbor uses a scale to determine how much tution she will pay for her child. It is something like this:

100% for a 4.0 grade pt. average

75% for a 3.0 or greater

O% for less than a 3.0

Seems to be working. Her daughter is very determined to keep her grades up and not pay the tution!

learning to live well without spending alot of money

[PrincessPerky]

....., please let them know as early as possible, i.e. when they are still in elementary school. The least you can do is contribute by working with your kids in seeking scholarships and other forms of financial aid. From the time I was in grade school, my parents led me to believe that they would fund my college education. But right after I graduated high school they informed that they weren't going to assist me after all. They had never put away money for this purpose. They just thought they could improvise when the time came.

I want to second this tell them point. Not just in elementary, but whenever you get the chance, 1, 3, 5, or 11, 13, 15, or 21, 23, and 25. Whatever, tell your kids what the deal is, while I understand understating your monetary availability, ala Missouri, I do not understand overstating it.

Regardless of your financial situation honesty is always a good policy. IMO