College savings versus vacation?

[disneysteve]

I don't think I could enjoy a vacation if I knew it was at the expense of DS's college.

I'm not sure how I feel about that. One could easily say our vacations are at the expense of DD's college. Even though we do fund a 529, we could put even more in if not for vacation spending. We could also invest more for retirement if we didn't take vacations. So you could say the vacation money is at the expense of money for other things that some may feel are more important. As usual, I guess it all comes down to priorities and we consider travel to be a priority in our lives.

Again, my answers are all hypothetical because we are fortunate and don't have to choose one or the other. If I was actually in that situation, I might feel differently.

[disneysteve]

No, it was all the money you blew in Vegas that made it so expensive. JK

Actually, I won enough in Vegas to cover the hotel bill for 4 nights at Excalibur, so that helped the budget.

[DebbieL]

Well, I'm all about saving for the future, etc. I do however like to do occasional things for "today" that are what make life fun. If I didn't have that vacation to look forward to (about every 2 years we do a big one) I would get awfully bored. I think college is very important, but I feel that she's only a kid once and I'd like to have lots of fun memories of her childhood, not just everything being about saving. I know this is a bit morbid, but what if I (or God forbid her) die tomorrow? You can't take it with you. I in no way use that as an excuse not to save/plan for the future, but it is more of a reminder to do some living today too. I lost 2 siblings way too young (20 and 46). I know how quickly and unexpectedly it can all be over and I intend to enjoy myself as well as plan for the future I hope to have.

[disneysteve]

Well, I'm all about saving for the future, etc. I do however like to do occasional things for "today" that are what make life fun. If I didn't have that vacation to look forward to (about every 2 years we do a big one) I would get awfully bored. I think college is very important, but I feel that she's only a kid once and I'd like to have lots of fun memories of her childhood, not just everything being about saving. I know this is a bit morbid, but what if I (or God forbid her) die tomorrow? You can't take it with you. I in no way use that as an excuse not to save/plan for the future, but it is more of a reminder to do some living today too. I lost 2 siblings way too young (20 and 46). I know how quickly and unexpectedly it can all be over and I intend to enjoy myself as well as plan for the future I hope to have.

Well said, Debbie. Citibank had an ad slogan a few years back. I don't remember the exact wording but it was something like, "Build a nest egg but don't forget to have a few omelettes along the way."

[LivingAlmostLarge]

That's a nice saying. But many people here don't seem to be having $7k/year vacations. Most are getting by on less.

And most here seem to think vacations are good, but no one seems to think $7k good. So I guess the situation is not necessarily normal HERE, but in the real world?

I would bet we all know many people who can easily blow $7k/year on vacations. And the question is then is it worth a college education?

[disneysteve]

I would bet we all know many people who can easily blow $7k/year on vacations. And the question is then is it worth a college education?

I don't think I know anyone who spends that much on vacation but isn't also saving for retirement, their kids' education and other goals so I really can't say what is "normal" out there. I do absolutely know people who spend that much on vacations, though, so I know that isn't so unusual.

[Snowgirl]

In the "real" world, I still don't know many people who have 7k$ vacations every year. I'm talking about young middle class families with 2 working parents (some DINKS as well). Most of them don't save aggressively for retirement, or whatever, and they could not afford that 7k$ every year with how they currently manage their finances. Sure, if they were as frugal as some people here they could, but then they'd put it away .

College saving is less an issue, since schools are public, and very affordable relatively: 13k$ for 4 year engineering degree, tuitions and books, living at home. Most people would then not put that a priority over vacation, even if we have a government program that match your contribution at a 20% ratio, up to 2K/400$ a year till the kid is 17.

Personnaly, when we have kids (currently DINKS), I intend to put away a small bit for their college each year to get the most out of my taxes (government grant), but won't make big sacrifices for that. When they get to the college part, I will help out if possible then.

Vacation is indeed important for me, as a person, a couple, and later a family. I will bring my kids to places, I missed not having that when I was young. Even if they're very little and won't remember it, to me it is not a choice of the kid getting something out of a vacation, but our family getting something out of it. The baby may not remember or care, but his parents will. Right now my budget is between 3-5k$ a year, but for 2 trips: last year was a week in the Caribean, and 2 weeks in Disney. I'm way too cheap to spend 7k$ for a week... I can get 3 trips out of that money!

Well, I'm all about saving for the future, etc. I do however like to do occasional things for "today" that are what make life fun. If I didn't have that vacation to look forward to (about every 2 years we do a big one) I would get awfully bored. I think college is very important, but I feel that she's only a kid once and I'd like to have lots of fun memories of her childhood, not just everything being about saving. I know this is a bit morbid, but what if I (or God forbid her) die tomorrow? You can't take it with you. I in no way use that as an excuse not to save/plan for the future, but it is more of a reminder to do some living today too. I lost 2 siblings way too young (20 and 46). I know how quickly and unexpectedly it can all be over and I intend to enjoy myself as well as plan for the future I hope to have.

I also love what DebbieL says, what good to have lots of money when I'm old if I haven't enjoyed life getting there. I'll have forgotten how to spend it by then, and die rich.

[LivingAlmostLarge]

LOL, Steve I know many who spend $7k but yes some are saving. More are using retirement savings to fund those $7k trips.

[pearlieq]

And most here seem to think vacations are good, but no one seems to think $7k good. So I guess the situation is not necessarily normal HERE, but in the real world?

$7k/year for vacation is probably pretty close to accurate for DH and I (DINKs). Sometimes that's 2 trips in a year, sometimes 4 or 5. It just depends on what we want to do and where we're going.

I don't see anything wrong with it as long as I'm addressing other priorities first. I certainly don't regret it.

Maybe my perspective would change if I had kids, but I think their needs have to be balanced with mine and DH's. I suppose we could stop vacationing or take super cheap trips to save enough to fund ivy league doctorates. But I don't think that's fair to DH or I--we have the right to enjoy ourselves and our lives as well.

As I said before, assuming we can afford it, DH and I are good for 4 years of state school. If we had to cut back on vacation spending to accomplish that, fine. I'm willing to do that. I'm not, however, willing to forego traveling in order to provide a luxury college experience.

[Scanner]

Okay, I think you guys keep dodging the issue. I am trying to get a sense of what a priority is here.

Let's say you get to the end of the year and you only have $500 left over. Again real scenario. Maybe it's because you didn't manage your money the best but you fully funded your retirement, you had 1 car repair emergency, and you now have $500 left over and 2 kids.

Now. . .what do you do?

Put the $500 in a 529?

or

Go to Lancaster, state park, etc?

Here's the rub.

I am politically moderate. Sometimes I see the liberals have a point. Sometimes I see the Conservatives have a point.

In this case, I see the Conservatives have a point.

Fine. . .okay, the forum chooses the vacation - Disney, Lancaster, camping, beach, whatever.

But then don't come whining about how expensive college is 15 years from now and how the gov't should have subsidized taxpayor relief because you wanted to go to Lancaster in 2008.

Because that is how Americans think.

"Well, my God. . .my child is entitled to go to school. He's smart (so what? so's mine). Why isn't the gov't doing something" (which incidentally, plays psychologically right into the democrats hands).

This is real life.

Sometimes if you want college, you just don't get to have a vacation this year, no matter how creative you think you can be.

I don't know. . .I guess a sense of sacrafice and choice is kind of old fashioned value, especially for Americans nowadays.

Sorry if this is preachy but I think it's true.

EDIT: and btw, I am not judging people who put vacations over college. Some people don't think college is "all that" so they get to have the vacations and their children enter the workforice/armed forces upon graduation and work themselves towards an education. That is totally fine. It's just not what I see with parents of 18 year olds, who the majority want their kid to go to college but don't have 2 pennies to rub together for it.

[sweeps]

Fine. . .okay, the forum chooses the vacation - Disney, Lancaster, camping, beach, whatever.

But then don't come whining about how expensive college is 15 years from now and how the gov't should have subsidized taxpayer relief because you wanted to go to Lancaster in 2008.

Agreed!!!

[pearlieq]

But then don't come whining about how expensive college is 15 years from now and how the gov't should have subsidized taxpayor relief because you wanted to go to Lancaster in 2008.

Who said anything about blaming the government or expecting them to subsidize the cost of college?

I do think college is expensive. Too expensive. Overpriced, really. But I don't see that as something I expect the government to fix in a free market economy. There are still inexpensive alternatives and if we have limited means, that's how we'll get junior through college.

I don't know how to be any clearer--my priorities are mixed. I think college is important, but not to the point of grinding self-sacrifice. I don't consider it on par with food, shelter, and health care. I would do anything, up to the point of turning tricks, to provide those for my child.

College is more of a "nice to have". I wouldn't choose an excessively luxurious vacation over college savings, but I also wouldn't forego a budget vacation in order to pad the college fund.

But at no time would I be expecting the government to take responsibilty for that choice. And for what it's worth--I usually swing left politically. I'm not crazy about the assumption that democrat = looking for government handout.

[Scanner]

I can see it now.

President Jeb Bush in 2020 enacts the "Great Disney World Bail-out."

America will be facing the prospect of millions of youth who will not be able to afford $400,000 college educations, working at Burger King and foregoing their Disney vacations at the same time.

So, in a bold swift move, President Jeb Bush, following President Chelsea Clinton, enacts a 90 day Disney World Reform by sending 500 free Disney Points to all Americans so they can have their vacations.

"We beleive this will not only allow for college educations but keeps the economy in my old state strong by employing the people working in Goofy and Donald Costumes. Expect your Disney Reward Dollars by June.

These Disney Reward dollars can be applied anywhere - at the Magic Kingdom, the Contemporay Resort, even for busing.

We hope to also improve monorail infrastructure by 2030."

[disneysteve]

Okay, I think you guys keep dodging the issue. I am trying to get a sense of what a priority is here.

Let's say you get to the end of the year and you only have $500 left over. Again real scenario. Maybe it's because you didn't manage your money the best but you fully funded your retirement, you had 1 car repair emergency, and you now have $500 left over and 2 kids.

Now. . .what do you do?

EDIT: and btw, I am not judging people who put vacations over college. Some people don't think college is "all that" so they get to have the vacations and their children enter the workforice/armed forces upon graduation and work themselves towards an education. That is totally fine. It's just not what I see with parents of 18 year olds, who the majority want their kid to go to college but don't have 2 pennies to rub together for it.

That's a tough question and truly impossible for me to answer since I've never been in that situation. I'm not sure what I would do if faced with that decision. I'l like to think that I'd save what little I had, but I can also see how folks living on the edge like that could really use the break and enjoyment that comes from getting away for a few days and having some good family time.

I don't mean to keep repeating the same thing, but even with $500, I think one could do both. We've done plenty of inexpensive trips. It depends where you live, but we live within day trip distance of the Jersey Shore, NYC, D.C., Baltimore, Lancaster, Hershey, Philadelphia and other interesting and fun destinations. We could do a couple of good day trips and spend maybe $100 total and still invest the rest.

So for me, education is a priority, but so is travel and family time. There will always be ways to finance the education but you can't ever replace the family experiences you didn't have. And I firmly feel that travel IS education and is part of the big picture that includes more than just what happens in the classroom. For example, reading a book about the Holocaust is one thing. Visiting the National Holocaust Museum adds a whole other level to the understanding of those events.

[disneysteve]

These Disney Reward dollars can be applied anywhere - at the Magic Kingdom, the Contemporay Resort, even for busing.

Don't be ridiculous, Scanner. Everyone knows Disney buses are already free.