Need advice - If we chose private school are we risking our retirement?

[MooseBucks]

$6k private school is very cheap (really cheap actually), but what's private school or a 4yr old and 6months old? Is it daycare (which is still very cheap for a year)?

It's pre-k-12th grade. Sticker price starts at about 20k for lower school.

[scfr]

What about resolving to get your retirement savings/investments solidly on track before you send the kids to the private school? If sending them to school is something you and your wife really and truly feel is important, then it won't feel like a sacrifice to skip eating out and doing staycations in order to get the retirement funds ramped up first so that you can send them to the private school without sacrificing your own future.

You said that you felt behind because you didn't start at the school until high school, but what would be the harm in having your kids wait until 3rd or 4th grade? Why not send them to public school for the first few years and supplement with at-home teaching, library programs, etc?

[Gailete]

I guess I'm misunderstanding, but if the only money you have to pay for private school is from your self employment income, it doesn't look to me as if you can even afford private school. You may get a tuition help, but what about school uniforms, school activities that cost extra, birthday party presents for the rich kids that yours will associate with, plus lessons for music or dance or karate, etc. Have they been taken into account? The cost of everything just goes up and up and up.

I was a student in the 1960's and early 70's. By the time I graduated HS in 73, I had gone to 8 different schools (not including 4 moves during K) including moving 3000 miles in between 10th and 11th grades. In the sixties classrooms of over 30 students were par for the course, yet we still learned better than most kids today seem to. I graduated with highest honors even with all the disruptions that most people would never think of putting their kids through these days. Needless so say, the thought of plunking down so much money for private school for your kids isn't something I think of as necessary unless their school is really unsafe to go to. The fact that you will be cutting back on eating out, and those types of activities makes me wonder how long can you live with a healthy but bare bones budget, especially when you are literally planning on doing it for the next 18 years! That is going to be tough to do. The thought that your tuition won't change over the next 18 years is hard to believe as well.

I would much rather see mom being able to be home to help kids with homework and milk and cookies for the kids when they come home from school while they talk about their day.

[TexasHusker]

The above really is true. When our kids were in private school we budgeted another 30% for all of the athletic and band fees, buying raffle tickets, gifts for the teachers and coaches, etc.

The tuition is the first exoense; there are many others.

[disneysteve]

The tuition is the first exoense; there are many others.

College is exactly the same. I think people often overlook those accessory costs when figuring out if they can afford something whether it's private school, college, or a new house.

[LivingAlmostLarge]

Even without private school tuition things get expensive as they get older. if they are in sports/clubs/teams they can often get very pricey as they get "better" or participate more. A friends kids are spending $1k/month on dance lessons/theater, etc. It's super easy to run up costs even outside of private school.

What are the chances of losing self-employment income? If clients stop coming? What sort of self-employment income?

[MooseBucks]

Even without private school tuition things get expensive as they get older. if they are in sports/clubs/teams they can often get very pricey as they get "better" or participate more. A friends kids are spending $1k/month on dance lessons/theater, etc. It's super easy to run up costs even outside of private school.

What are the chances of losing self-employment income? If clients stop coming? What sort of self-employment income?

Luckily sports are included and required at this school. No additional fees except for cleats/swim suit etc. In terms of self employment income, I'd rate it as safer than my primary employment.

[LivingAlmostLarge]

There is always extras with sports more than cleats and swim suit. Don't a lot of kids do private to supplement the sports? or more than just a school team? Lots of people in private school i know avoided team sports and went town league so they could be competitive for scholarships in the future. Their kids needed to play in a bigger competition so I've heard.

Plus I know for a fact that usually private schools wants/expect donations for scholarships like what you are getting. What happens if you get a promotion? Or raise? How will that affect what you are paying? Will it go entirely to private school tuition?

I think you can afford it but I'd make some cuts to the budget to afford it.

[Gailete]

It would be good to find other parents whose children go to this school and see what they feel about the academics and the extra costs and is possible how well the school keeps its word on tuition reimbursement.

[cologero]

With the rainy day fund/savings you have saved up, I'd max out your Roth IRA for 2016 before December is over. Then you'll be able to fund it again in January for 2017.