Saving for college questions

[0627Devildog]

Born into poverty, no degree, made my first $1M by 32 . . . . College isn't for everyone. That said, local community/state colleges are generally a much cheaper option. I will not allow my kids to go into debt for a degree. Too many of my Dr./Lawyer friends are still clawing their way out while I'm living life.

I should have added to this that we have 529 plans for each of the kids that we started on or before their 1st birthdays. We take $200 month (x3) and put it away into separate savings accounts and then transfer into their respective 529's when it gets above $5K. We also encourage everyone to forgo traditional gifts for Christmas/Birthday's/Etc. . . . with the understanding that any cash they get goes to college funds which has helped bolster their accounts. We also don't spend money on kid birthday parties every year (x3) just to get cheap toys that will break/go to waste. Instead we have a few friends out for a movie/bowling and put the money we save on a party into their accounts $500-$1000 each year. Throwing parties ain't cheap for 15-20 kids.

 

[Peelz]

Born into poverty, no degree, made my first $1M by 32 . . . . College isn't for everyone. That said, local community/state colleges are generally a much cheaper option. I will not allow my kids to go into debt for a degree. Too many of my Dr./Lawyer friends are still clawing their way out while I'm living life.

1 billion % agree. In most cases, College has become an expensive patch one earns, rather than a useful tool. In my business, Iv'e come across 100's of "college educated" folks. What iv'e learned. College certainly doesn't make you smarter. And it definitely isnt a precursor to having a solid employee. I Have engineers come in here, and ask me how to fix things all the time...... Most college just gives you a foot in a door. (unless you specialize).

for the last 30 yrs, kids have been taught that success=not working hard. This is whats wrong. Nobody wants the tough jobs, because theyre out of fashion.

My kids are being told, if you want college, have a goal and specialize if not, pick something, go to a Trade school, and excel at it. I'm not just sending you to college just to say you did it. That bothers me.

that being said, we started saving for whatever they choose.

 

[Port0222]

My kids are being told, if you want college, have a goal and specialize if not, pick something, go to a Trade school, and excel at it. I'm not just sending you to college just to say you did it. That bothers me.

I agree with this statement -- pursuing a degree in Sports management (close friend of mine who now works at a call center) or Film Studies (Another Friend who is an Admin) -- Or degrees that have no careers -- are a waste of time and money. My college allows students to create their own degrees -- That feels like a money grab to me. Get a degree in the career you want to pursue. Don't get a degree so you can find a job later. Like @KXCam22 -- I am an Electrical Engineer -- You cannot find an Engineer job without an engineering degree -- but to your point above -- just because you have an engineering degree does not mean you are a good engineer. (Replace engineer with anything in life and it will still be true)

 

[scokill]

We were lucky to get all 3 of our kids in the Texas Guaranteed Tuition Program. You essentially paid the current rate and you were covered at the time they went to college. We paid comfortably in 10 years from the time they were born. It was such a great deal because of the rate tuition and fees were rising that they stopped the program for new children. They now offer a 529 plan. Just to give you an idea we paid less than $10K total for my oldest daughter and we will get north of $50K in benefits. My son cost a little more, and my youngest cost more too but she was got in the last year before they shut the program down.

 

[Devildog]

Also keep in mind that you can enroll in any 529 program in any state. Some states have plans that are better than others. I've attached a couple of links below that highlight the best current 529 plans and another link that gives a breakdown of each state's 529. Good luck.

http://www.kiplinger.com/article/college/T002-C000-S002-the-best-college-savings-plans-2017.html

https://www.forbes.com/sites/baldwin/2016/03/03/guide-to-the-best-529-plans/

 

[swatski]

One more thing (not necessarily "helpful" but something to keep in mind)
Your available 529-type funding for kids will be more or less automatically deducted from any tuition assistance your child may be offered.

--

 

[AZDANSX230HO]

Born into poverty, no degree, made my first $1M by 32 . . . . College isn't for everyone. That said, local community/state colleges are generally a much cheaper option. I will not allow my kids to go into debt for a degree. Too many of my Dr./Lawyer friends are still clawing their way out while I'm living life.

Same here!!!

Two of my kids went the community college route and both stopped after their associates degree, they both have successful jobs making great money that really have nothing to do with their college education nor did their jobs require a degree. It's not about the degree, it's about your drive, work ethic, etc. if you want success in life.

 

[Speedling]

I would like to put in my 2 cents on the college thing.
I had awesome act scores of 28 my first time ( fresh/soph year) and ended with a 32 later. I got accepted at some great colleges and opted for the public one. I now work construction with a bs in cs. I came out debt free and went right into being able to afford a brand new bi level for me and the wife. It was good for me but there is always that job placement idea that some of the big colleges can really do a better job of. It's a what if scenario. I learned what i wanted to learn, took some extra business stuff and now help my uncle and cousins run our company. I however, am not part owner or anything, just hourly employee. Not going to be a millionaire ever.
Just consider what a college can do as far as job sourcing, networking, etc as much as just getting a degree.
Not a sob story, i am perfectly happy, but i work HARD LONG hours that could have been a very different life. I honestly like doing physical work. I like not worrying about the company stuff when i clock out.

 

[Devildog]

Really enjoy hearing all of the opinions and successes. Outside of $$, for me it was an "ah-ha" moment while being a lowly enlisted guy in the Marine Corps. I learned that without a college degree, I could never be an officer (except in rare situations). I was taking orders from officers all day long and the fact that I could never become one was impactful. This simple fact pushed me to get my degree after my enlistment. I never wanted to be in a situation where the lack of a degree would hold me back. I guess the funny part is that I never went back to be a Marine Corps officer.....the experience that I got in the USMC has been so valuable throughout the years.

 

[0627Devildog]

the experience that I got in the USMC has been so valuable throughout the years.

I'd go so far as to say it was invaluable. . . .

 

[Peelz]

I would like to put in my 2 cents on the college thing.
I had awesome act scores of 28 my first time ( fresh/soph year) and ended with a 32 later. I got accepted at some great colleges and opted for the public one. I now work construction with a bs in cs. I came out debt free and went right into being able to afford a brand new bi level for me and the wife. It was good for me but there is always that job placement idea that some of the big colleges can really do a better job of. It's a what if scenario. I learned what i wanted to learn, took some extra business stuff and now help my uncle and cousins run our company. I however, am not part owner or anything, just hourly employee. Not going to be a millionaire ever.
Just consider what a college can do as far as job sourcing, networking, etc as much as just getting a degree.
Not a sob story, i am perfectly happy, but i work HARD LONG hours that could have been a very different life. I honestly like doing physical work. I like not worrying about the company stuff when i clock out.

and theres nothing wrong with any of that.

 

[jdonalds]

My biggest concern about some of the programs is what happens if the child doesn't go to college. I'd not want them to receive all the money if they chose not to continue school.

 

[BigN8]

My daughter just graduated HS last year. I watched so many of her friends head off to big 4 year schools having no idea what they want to do in life. They all just went because....."it's the next thing you're supposed to do, right?" I listened to everyone kind of gloat about where their son or daughter was headed off too, more than half of them had no college savings for it. I told my kid, it's not about where you start, it's about where you finish and what you want to do in life. If you have no idea what you want to do, that is fine with me. I don't expect you to have it figured out yet. It's a big decision.....take your time..... there's no rush. So I enrolled her in a local community college with the goal of an Associate of Science until she can figure out what she wants to do. I also loved putting the entire 1st semester on my Capital One card, getting double miles, and paying it off the next Month. So she lives at home, comes and goes how she wants, has a full time job as a waitress and is taking 15 hours at the CC. I also made her pay for all her books with her money, just so she has a little buy in on her schooling. After the 2 years I told her she can pick a school and finish her degree where ever she wants.

I tried college and it wasn't for me. Joined the Navy, learned how to operate a Nuclear Reactor and got out. What I do now has nothing to do with Nuclear Power, but I do pretty well. The Navy taught me life lessons and created a good foundation to build off of. I became financially stable in the Navy, met my wife, paid off our first car and joined the work force with zero debt. So I am a big fan of joining the military as a next step to life after high school. I tried to talk my daughters into joining but they aren't interested, and that's fine. Now my younger daughter is a whole different story. She already has a path in mind and knows what she wants.

 

[Ancient canoe]

My biggest concern about some of the programs is what happens if the child doesn't go to college. I'd not want them to receive all the money if they chose not to continue school.

You pay taxes on it and a penalty. Then you can do whatever you want with the money. You could also transfer to another child

 

[Tobes]

We've had a 529 for our daughter since she was 6 or so. From a tax perspective it makes the most sense. If she decides not to go to college we can use it on ourselves, other family members, or withdraw it with a penalty to pay the defense fees I'll need after they "why the f aren't you going discussion goes south!" LOL

It is freakin crazy how much a year of college costs now! My alma mater would be approx 61K per YEAR.....

That is insane. $61,000 for a year of college?!?!?! My wife did not go to a prestigious school by any means but she makes the same as anyone else in her field (if not a bit more). Her total schooling was about $90,000 in which she started working as a RN after 4 years of college and was able to stay working and do an online masters to reach Nurse Practitioner. No specialization and still makes $40k more than average for her experience level. I could not imagine paying $61k/year for college!

I am personally pushing my son away from expensive colleges. There is generally no need at all. The same level of education can be obtained elsewhere. The only thing to be gained is POSSIBLE connections at those big schools (for the most part, there are exceptions).

That said, I make nearly as much as my wife without a degree. I attribute that to working my ass off though and not getting to enjoy what college had to offer.

 

[Julian]

@Tobes I agree....I'll be encouraging my daughter to attend one of our State colleges....if she wants to go somewhere more expensive....she'll be paying a big part of the difference.