age and money

[JoeP]

I think of the "what if" situations that might be around the corner, but do not worry or obsess over them. It is impossible to account for every possible situation, but at least be prepared to the ones that are likely.

If anything, I worry about my kids: after college, what kind of world will be waiting for them? If we have to help them out, that's ok, but I worry about how long it will take them to feel financially secure.

[disneysteve]

our son's 529 is completely funded

I'm curious what you consider "completely funded".

[feh]

I'm curious what you consider "completely funded".

We've decided to provide him w/ enough money to fully pay for 3 years of our best state school. How he chooses to spend that money (3 years at a state school, 4-5 years at something less expensive, 2 years at a private school) is up to him. He will be responsible for funding the shortfall, if there is one.

[disneysteve]

We've decided to provide him w/ enough money to fully pay for 3 years of our best state school. How he chooses to spend that money (3 years at a state school, 4-5 years at something less expensive, 2 years at a private school) is up to him. He will be responsible for funding the shortfall, if there is one.

Thanks. Being in the college search process right now, it is quite clear that "fully funded" really isn't something that most families can ever hope to achieve. We'll probably be covering about 2 years at DD's preferred school between her 529 and cashflow during college.

[moneybags]

Thanks. Being in the college search process right now, it is quite clear that "fully funded" really isn't something that most families can ever hope to achieve. We'll probably be covering about 2 years at DD's preferred school between her 529 and cashflow during college.

I'd be curious to know what the real numbers are on this "most". There are a lot of families that fully fund their childrens' educations (without loans). I'm off to google....

28% of families pay for college with parents savings and income (see p. 7):

https://www1.salliemae.com/NR/rdonlyres/75C6F178-9B25-48F5-8982-41F9B3F35BF6/0/HowAmericaPays2012.pdf

[disneysteve]

28% of families pay for college with parents savings and income

That's not what that graphic says. It doesn't say that 28% of kids have the full cost paid for by parent income and savings. It says that 28% of the cost of college comes from parent income and savings. That's a very big difference. So 72% is paid for in other ways.

[moneybags]

That's not what that graphic says. It doesn't say that 28% of kids have the full cost paid for by parent income and savings. It says that 28% of the cost of college comes from parent income and savings. That's a very big difference. So 72% is paid for in other ways.

Well that's what I get for being online at work , and I still don't have my answer.

[disneysteve]

I'd be curious to know what the real numbers are on this "most". There are a lot of families that fully fund their childrens' educations (without loans). I'm off to google....

I couldn't find an answer either but I don't think "a lot" is as many as you may think. This is probably something that predominantly falls into the realm of the 1%. I'm willing to bet that the vast majority of parents are not able to pay 100% of the cost of their kids' education, especially if they have more than one child.

[kork13]

I couldn't find an answer either but I don't think "a lot" is as many as you may think. This is probably something that predominantly falls into the realm of the 1%. I'm willing to bet that the vast majority of parents are not able to pay 100% of the cost of their kids' education, especially if they have more than one child.

"Realm of the 1%" .... I think it's probably more prevalent than that. It's really just a matter of priorities. I understand that a single instance doesn't indicate a trend... But my parents put my brother through a private liberal arts university & he never paid a dime in tuition. Getting all of us through school without student loans is just something that my parents always aimed for, so they saved toward that. I got a full-ride scholarship, they paid 100% of the cost for my middle brother, and my youngest brother has completed his first year of college on scholarship as well. Not to say that it was easy for them, especially having to balance that with the costs of my mother's ongoing cancer treatments and with my father as the sole breadwinner, making around $90k/yr (my mother did work consistently throughout my childhood, but mostly stopped teaching ~8 years ago). But it's simply a matter of what's important to you & your spouse.

So in that respect, I suppose I can understand where your friends are coming from in funding their kids' education as a priority. With that said, though, I still don't think it's wise to over-emphasize college savings while not proactively managing & eliminating debts....

[moneybags]

"Realm of the 1%" .... I think it's probably more prevalent than that. It's really just a matter of priorities. I understand that a single instance doesn't indicate a trend... But my parents put my brother through a private liberal arts university & he never paid a dime in tuition. Getting all of us through school without student loans is just something that my parents always aimed for, so they saved toward that. I got a full-ride scholarship, they paid 100% of the cost for my middle brother, and my youngest brother has completed his first year of college on scholarship as well. Not to say that it was easy for them, especially having to balance that with the costs of my mother's ongoing cancer treatments and with my father as the sole breadwinner, making around $90k/yr (my mother did work consistently throughout my childhood, but mostly stopped teaching ~8 years ago). But it's simply a matter of what's important to you & your spouse.

This! My kids always had the fake version of the latest trend, we didn't have cable tv for years, etc. Small sacrifices so that they will come out of college with no debt.

[disneysteve]

"Realm of the 1%" .... I think it's probably more prevalent than that. It's really just a matter of priorities.

I was exaggerating with the 1% comment but I was also thinking about all schools, not just cheap state schools or community colleges with the students living at home. You have to include resident students and private schools in the overall picture too.

For our daughter to attend Rutgers, a NJ state school, would cost us about $27,000/year (and probably a little more because it will go up some next year) and that doesn't include books and supplies and other expenses. So even without an annual increase, we'd be looking at well over $100,000 for 4 years and that's for in-state residents at a state school. We could stretch things and make that work but we earn a good income and only have one kid. If we were the median household making 50K and had 2 or 3 kids, that would be out of reach.

[Blessed]

I feel we are doing ok in our 40's with no debt and saving quite a bit. However I worry quite a bit about retirement and feel like we should be doing more with our investments. I think i worried way less in my 20's.

[TBH]

I think most of us on this board will always worry about money. That's why we're here. We will never feel like we have enough to relax. Something could always go wrong with the economy, with our health, with our jobs. We're here because we're all constantly trying to build more security.

[Blessed]

I think most of us on this board will always worry about money. That's why we're here. We will never feel like we have enough to relax. Something could always go wrong with the economy, with our health, with our jobs. We're here because we're all constantly trying to build more security.

I think it would take about 10 million invested conservatively for me to never fret. Silly huh?

[JoeP]

I think it would take about 10 million invested conservatively for me to never fret. Silly huh?

Not really silly, but I suspect you're the kind of person (I know I am) who wants to see earnings be close to covering your expenses, or at least enough to make that 10 million expire around age 95.