How we're saving for our kids' college
Given that Mr. FG and I have four kids, college savings are definitely on our radar, especially now that our oldest is approaching his teen years.
For many years, Mr. FG and I had to scrimp and pinch just to make ends meet, so we weren't able to make college savings a regular part of our budget.
During those years, I mostly just sent rebate checks and other small bits of money off to an online savings account. I did manage to amass about $2000 that way, but of course, $2000 doesn't go super far with four kids.
Now that Mr. FG isn't working in warehousing anymore, we've got a little more wiggle room our budget, so we've been able to put a bit of money away each month for the kids, which makes me happy.
Unless something odd happens with our finances, we won't be able to save enough to pay for 16 years of college, but I am not going to let the perfect be the enemy of the good.
Because having something saved is better than having nothing saved.
A while back, I decided to research my options for special savings accounts, and I considered opening 529 accounts for each kid. These accounts allow you to save for future educational expenses while offering a tax advantage.
Sounds good, right?
The downside is that the money can be used only for educational expenses if you want to keep the tax advantage (if you use the money for non-educational expenses, you are subject to income tax plus a 10% federal tax penalty.)
This is fine if you know your children are all going to go to college. But I thought about how things went with my siblings and me.
My two younger siblings did get their college degrees in business management and in nursing.
However, my older brother does not have a degree and instead worked his way up through the company he started at (he now manages the technology for 5,200 restaurants on the East Coast.)
As for me, I attended college for a year, got married, and then decided to use the rest of my college money to buy my piano.
(I consider this to be one of the most brilliant decisions of my life, given that I would not have used my degree thus far and that my piano has paid for itself over and over and over).
My older brother and I don't at all regret not going to college...it just wasn't the right path for us.
As of right now, three of our kids want to follow career paths that require a college degree (two herpetologist-wannabes and one marine biologist wannabe), but Lisey wants to be a pastry chef.
The path to pastry-chef-ing isn't quite as clear-cut as the others, and we don't want her to be boxed into having to go to college if that's not the best path.
Plus, who knows what will happen with the other kids? I'll be surprised if Joshua changes his mind, but Sonia and Zoe are awfully young to be positive about what they want to do.
So, Mr. FG and I decided to skip the specially earmarked college account and instead, we've just got four 360 Savings online accounts
open for our kids.
I labeled them as college savings accounts (Joshua's College Savings), but really, it would be more accurate to label them something like "Joshua's Future Account", or "Lisey's Future Account".
We figure that this will give our kids the flexibility to spend the saved money in a way that will best prepare them for their adult lives...maybe it'll be college, maybe it'll be trade school, maybe it'll be starting their own business, and hey! Maybe one of them will need to buy a piano. 😉
P.S. I love our 360 Savings accounts because there's no minimum balance, no fees, and we can set up our monthly contributions automatically. I never have to remember to transfer money to their college accounts, which is awesome.
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I adore the line "I am not going to let the perfect be the enemy of the good", maybe that should be my new mantra 🙂
We ended up going the 529 route because the funds can be moved among "eligible family members" ... and I assume at least a few of my 5 kids will go to college. And hopefully, we can anticipate well enough if the 5th isn't college bound, and move her savings to an older sib before it's too late for them to use it. We don't have enough saved to worry about spending it relatively quickly. 🙂
I could be wrong, but I think 529 accounts are based on the stock market. I recall hearing stories over the past few years of parents not having the money when they needed it because of the stock market. As for me, I did what you started doing - saving a little bit here and a little bit there. It never amounted to much, so I always worried about how we were going to afford it. So I decided the best thing to do was get the house paid off, so we wouldn't have to worry about that expense. We did that, I increased my work hours, and somehow when my oldest started college, we were able to pay as he went (paying the year in 8 payments). We even had two in college at once for two years. I'm proud to say that the oldest just graduated in May and my second is in his Junior year. I guess my point is, even if you can't save it all, circumstances can change and sometimes things just work out OK.
I was just reading about this through one of my homeschooling loops, and although I haven't gotten to check out the information yet, I thought I'd pass it along anyway. (Incidently, my sister saved into a 529 and she got all of her money back because of something to do with a bankruptcy in the system?? Her son is now in his 20's and did spend some time in college - Sorry I don't know the details.) I just know that I too don't like the money locked into a certain purpose with the 529.
Apparently, the Coverdale funds can be used for K-12 educational expenses, although I am not educated yet as to how that might apply to homeschooling (homeschools are considered private schools in Texas). http://www.savingforcollege.com/intro_to_esas/
Anyway - thanks for the thoughts. I love both of the photos and it's nice to get a picture of your siblings!
Georgia
I am being faced with the decision to upgrade my piano. It is way overdue however, it's a huge expense. I went to university so my college fund was long used up. Instead I will opt to wait, save, and maybe a high quality used piano will come my way.
I'm not positive, but fairly certain, that the money in those 529 accounts can be used for any education costs, not only college. So, culinary school or pastry school would qualify. Good post! Thanks.
oh, yes. I was thinking more of a situation like an apprenticeship or where one of my kids wants to start a business (sort of like I did when I bought my piano for my studio).
Thanks for your insights on college. I'm a young adult and in this day and age it seems almost hopeless finding a decent job without a four year degree. It seems like everyone judges you based on how you look on paper, when in reality you could have a four year degree and still be completely inadequate professionally.
I have a two year degree, not because I'm lazy, but because at the time I was going down a different path professionally and chose not to continue on to another school (my school only offered two year degrees). Now, I'm stuck in a dead end job and can barely get anyone to follow-up with me after applying for over 60 positions in the last six months.
It's nice to hear that your brother was able to work his way up the ladder, but I fear that that is becoming a thing of the past. 🙁
Sadly, right now it's even difficult finding a job with a 4-year degree. Employers want the degree and job experience.
My husband has over 10 years experience in his field, including supervision, and a Master's degree, and has only had 4 interviews in 2 1/2 years--one job that required only a B.A. and the other 3 only HS diplomas. Right now it is the economy that is holding people back. He's applied for close to a thousand jobs now.
I think it largely depends on your field (and, at this point, the economy). My husband, in the IT field, never went to college, but he has almost 2 decades of experience and true hands-on knowledge - and he makes a better living than a large chunk of people we know who have degrees - bachelors and above. In an era where many people are graduating from college, I think it's actually reverting a little to employers looking at people for what they truly know rather than a piece of paper saying they spent a lot of money to take classes for x amount of years. Of course, this isn't true of all professions, but generally speaking - I think that with college degrees becoming more common, they aren't necessarily worth as much as they were even 15 years ago.
I love that you used your college money to buy a piano! A totally non-traditional decision that was completely right for you.
Part of the experience of going to college, is being on your own for the first time. In my opinion, that experience should involve paying (at least part) of your own way. I don't think kids should be saddled with a bunch of student loan debt just as they are getting started in life, nor should they get a free ride from their parents hard work.
I think balancing work and school and your finances is a part of what your learn in University (or whatever form your education takes). For some reason that seems to be down played nowadays.
My parents made it very clear from a relatively early age (oldest brother is 6 years older, so I probably know when I was 10 or so) that they would not be paying for college- however, due to their life experiences (very difficult to get a job w/out a degree, even with good experience & resume) that we WOULD be going to college. It motivated me to study through highschool to get good grades & apply for scholarships.
Did I sometimes envy the students whose parents paid for everything? Sure, but I also learned a lot. It gave me confidence too, knowing I could make a situation that was not ideal work if I was creative/worked hard & pursued my goals.
ING accounts are wonderful! Also, you might want to look into the ShareBuilder portion of the ING website - it's a way to buy stocks and I have one started a couple of years ago for my son. Every so often I add some more to it.
I believe that the parent or custodian of a 529 plan account retains the ability to transfer the money to another child if one child does not go to college. If you are interested in a 529's tax advantages, which I find compelling, especially in my state, you could always open 529 plans and keep this option in mind. Of course, if you did do a transfer, you might want to have another option for providing funds to the child who does not attend college but pursues a path you also want to support.
With respect to the comment about 529s being invested in stocks, the owner of the account has flexibility to decide how funds are invested - in stocks, bonds, money market funds, etc.
I was going to say the same thing. We opened an 529 for my eldest and if for some reason it doesn't work out it can go to her younger brother (though we started at 529 for him too though not as much.) In addition the money can go to educational related expenses like textbooks and computers. My parents like it because they can divest their funds with a tax benefit.
I think you are making a good decision keeping the money in your names rather than your childrens' names. When it comes time to qualify for financial aid the student's money counts against them more than money that the parents have in a bank account etc. Parents are only expected to pay a certain percentage of college costs depending on income and number of children, but the student is expected to use all the funds at their disposal. You may think that you won't get financial aid, but aid includes things like subsidized loans and access to on campus jobs. Also, don't rule out private schools. Some give enough aid to make them comparable to the state schools, especially if your children are really good students.
I think you are wonderfully open-minded about your childrens' futures.
I agree with the previous commenter that a combination of work and help from family/parents or other income is an ideal approach to paying for college. I was lucky enough to qualify for the Hope Scholarship here in Georgia which at the time paid tuition for 4 years at public universities for students with a 3.0 or higher. I worked part-time and had stock dividend income from stocks purchased for me by family when I was baby. I budgeted everything myself and did not get any extra cash from my parents. I graduated 2 months after the stock market crashed in October 2008 (no more dividends) and struggled a lot until I got an amazing government job in April 2009. I was very lucky to be able to get through college and my job search without loans or begging my parents for money.
Working and handling my own finances taught me responsibility that has helped me to be much more financially literate as an adult. I'm now working on my Master's and pay my tuition 100% out of pocket each semester thanks to budgeting and financial planning.
I assume that the money you are saving is in 4 accounts with your name on them. Saving money in a child's name for college will hurt a students financial aid package. The government likes to look at money from a student as tuition dollars whereas a parent's savings are looked at differently up to a certain amount.
An average middle class parent usually does not have the ability to save up to pay for their child's future tuition bills with the percentage increases happening every year.
I gave up and now have my first child in college. Hate to say it but I am glad I didn't scrimp and save. Universities now decide what a child will take out in loans and the parent's expected contribution based on income.
Most money saved will just reduce the amount of aid given if over a set amount.
The way it worked out for us is we pay the amount the financial aid award said is expected of us (this is based on our current income and savings) she takes out loans and makes money during the summer to pay for books and spending money. Home equity is often times not looked at as savings so this is a good way to put extra money to good use. Nice having a paid up house too-just ask Dave Ramsey.
My daughter figures it will cost her 2000 dollars for 4 years just for books and that is buying used as often as she can. She sure shops it when it's her dollars buying the books!
It is very discouraging as a parent of 4 kids to see the out of control prices of tuition, books, and room and board. I think if the government would get out of the student aid business we would see prices become affordable again.
Can 529s be used for cooking schools? As Michael said, it's hard to advance without a 4 year degree or otherwise relevant degree. Cooking school teaches not just cooking techniques, but business management and employment law, and most (all?) include placing students with restuarants or caterers so they get experience and a foot in the door.
Michael Ruhlman, a journalist-turned-food writer, completed most of the full course at the US' most promenant cooking school, the Culinary Institute of America, documenting in "The Making of a Chef." It's well regarded in cooking school circles: the techniques, the stresses (but not all the sexism and harshness of a restaurant kitchen), the atmosphere and challenges. I recomend it to Lisey as professional research.
Jacques Pepin wrote an autobio, The Apprentice: My Life in the Kitchen, that might be relevant as well, but I haven't read it.
Anthony Bourdain's "Kitchen Confidential" is a foul-mouthed, drug-fueled, macho, bullying view of the professional kitchen. It is not inauthentic but I am reliably informed that it does not apply everywhere. Given Bourdain's experiences and outlook, you might want to read it first to decide when it's appropriate for your child.
HTH.
I come from the land of college or bust. That's how I was raised and how my husband was raised. But our parents approached the finances very differently. My family cosigned my student loans to help me get private loans to pay for my ridiculously high private college tuition, whereas my husbands family pinched every penny to be able to help him pay his way. We both disagree on how to treat this part of our life for our future children, but one thing I can say is this, do not regret not paying for all (even any) of your children's college tuition. Frankly, paying my way with the help of student loans taught me a valuable lesson in independence and responsibility. I'm happy to say I was able to pay off all of it in less than 7 years. My husband had almost no debt and paid it off in 1 year. But I can tell you, I'm still better at long term financial planning. I credit my student loans, but maybe it's because I'm an accountant. No matter what path your children take, I'm SURE you will give them all the tools they'll need to accomplish their goals.
If you save the money in a Roth IRA, the earnings grow tax free. You don't have to use it for college (it is a retirement account), but if you did, you could pull out your principal tax free (since it was an after-tax contribution). This works as an emergency fund concept as well. Also, since this is a retirement account, it doesn't count toward money available for college expenses, which will qualify you for a larger financial aid reward. I would also suggest I Bonds, which are savings bonds with an bi-annual inflation adjustment, and the interest is tax deferred until you cash the bonds. Interest is non-taxable if you end up using the money for college expenses.
http://collegesavings.about.com/od/rothiras/ss/rothiras.htm
The Roth IRA is how I plan to save for my children's college. My favorite personal finance radio guy from Wisconsin Public Radio, Kevin McKinley, made the point that you can borrow for your children's college if you need to, but you can't borrow to fund your retirement. I'll check out the I bonds too. Thanks for your information.
I think the Roth IRA money not counting towards financial aid is true - if you leave it in your account. But, I read recently that if you pull money out of a Roth to pay for college, it will count in a financial aid calculation. Here is a link to an article that references this scenario:
http://helpdesk.blogs.money.cnn.com/2011/06/17/roth-ira-paying-college/
However, this is how we are saving for college. We don't have a lot to save, but we'll put some into a Roth IRA when we have extra. If we need to use it for college expenses, we will. If not, we'll have more for retirement!
Yes, any money you pull out is counted as income in the next year's financial aid calculation. You can wait until the last year of college (after FA determination) to use the Roth IRA money. But in general, I think it is better to have the money in a retirement account (but still accessible) so it doesn't count toward money available toward college. I think it's worthwhile to consult a financial planner (fee-only) who has children that have gone through college so they can best advise you on how to maximize your financial aid award.
There are also several work-study and tuition free colleges to consider:
http://online.wsj.com/article/SB124214844075811349.html
Our current college savings strategy is coin jars in our boys' rooms. I try to use cash, especially for groceries, so they get the change every week. I have no clue how much is saved up, but it's something for now! You can also suggest that instead of gifts, relatives or friends can provide money for their college funds. I know my parents set up a fund for each of our boys as gifts.
As for the future herp...you never know what will happen. We thought my brother would be one since he was OBSESSED with herps his entire life. He's now a graphic designer by day and artist at night. You just never know!
You can throw the coins into the Penny arcade TD bank has and start accounts for your sons. The account is free without min. until 18 yrs old. Also if they read 10 books a summer they give each child $10 to put in their account.
We don't have TD Bank here in AZ 🙁
I also have friends cosigning their kid's loans and taking out loans themselves to pay for their kid's schooling. I think this is a big NO NO myself and think people should think long and hard before going down this road.
If you can't pay it out of your income, savings meant for college, and the child taking out their own loans, perhaps it is time to consider a different college.
Remember if the child does not get a job after college and can't pay back their loans-you get to if you cosigned. Scary!!
We have graduates from the ivies not getting jobs in this "new economy".
Nothing is a lock in this economy anymore.
Linda, I agree, and am horrified at the number of grown adults who get manipulated by teen children into private college tuition prices. I had three choices for my education-- my dad made it clear that he would pay tuition, room, and board at any state college in our home state. Both of my husband and I were gainfully employed without private college degrees, and we both look back on those state college years fondly! We learned so much. I would encourage community college, as well, as a way to avoid loans altogether. I refuse to saddle a twenty-something person with six figures in student loan debt. Encourage work, take an extra job yourself, choose an inexpensive college, apply for scholarships, encourage living at home, and have a "no debt attitude." Do not let a broke child act entitled to a rich child's educational lifestyle! Cut the entitlement mentality NOW!
We are in the middle of college for both our kids right at this moment. We were never able to save much for this either. What we decided (with the kids) was that the first two years is staying at home and attending community college and finishing an AA degree. The junior and senior years will be where they want to go/accepted. If they choose to stay local we will be able to pay for tuition. If they choose to attend in a different city then they will have to work harder to support their living expenses. We have told them we will take care of the tuition so if they look for different ways to help with tuition (scholarships, grants etc.) then they will be able to use the offset to help pay for living expenses and not have to work as hard while going to school.
Our children were three years apart in school then we decided to homeschool...now they are one year apart. Now I have got two kids in school at the same time for the next three years. Now that they are both in school and this stay at home homeschooling mama has not as much to do....I will be heading back to work to help with these expenses.
I think it's a smart plan to keep your children's options open. I ended up getting a full scholarship, so the money my parents had saved went toward some backpacking around Europe. My brother also got a scholarship so was able to spend the money from my parents on a mission for our church. My sister went to cosmetology school rather than college, and now makes more money than any of us. You never know what the future might bring, and it's a good idea not to be boxed in.
We have 529s for the kids but a few years ago I decided to stop contributing to them and instead pre-pay our mortgage. The plan is to have the mortgage paid off before they start college - that way we'll have the cash flow that used to go to the mortgage payments freed up for college (plus what we already have saved). Also I believe home equity is not counted as much toward financial aid.
I am so glad to hear someone other than myself saying this! College is just not for everyone, and it's those who insist that it is that are hindering kids and even adults who would be better off if they chose a different path. Yes, that would be in so many areas where people are simply not available to take these jobs because they are not training enough people to do machining and plumbing and so many other jobs which don't need college degrees.
My son didn't go to college but all his friends did. Who's doing well now? Not the college educated ones! My son now owns his own business rebuilding vacuum pumps, has money in the bank and at age 24 is going to buy a house. College is just not for everyone. The more we say it, the better off the entire country will be, I'm thoroughly convinced.
My brother went to college, graduating with a degree in construction management that he never plans to use- he owns his own business & is doing well financially. Went to college so that if he wants/needs something different in the future, he has more options/opportunities.
I believe the reason many parents, or at least mine, push for college (even if kid is not planning to use degree) is because it will provide options in the future. My dad found this out the hard way- he dropped out of college to accept a job (equivalent of a job paying over $100k today). Worked out great until 20 years later when he wanted to do something different & found out it's hard to a job without a degree- even when you're experienced & successful.
This made me smile! Thanks to you (Thank you!) we started ING Orange accounts on our three boys a few months ago to start saving money for them. I was at a loss on what to do until you mentioned the Orange accounts. Now I have lots of accounts set up, I LOVE them! So thank you Kristen :o)
"I am not going to let the perfect be the enemy of the good". This is awesome. And just made my day.
Thank you Jesus for working through Kristin
I love having ING accounts - we use them for our emergency funds and sinking funds (vacation, cars, house repairs, etc.).
What about putting some of the money into a stock mutual fund or bond fund? Especially for Sonia & Zoe the risk for a higher return might be worth it.
Just a thought - my husband and I will be discussing these options soon as we are expecting our first baby in February. Yay! 🙂
Thank you for sharing that you didn't have savings accounts for a several years! It is one of those areas where I experience lots of mother's guilt because my husband and I cannot put money aside. It makes me glad to know we are not the only ones, and gives me hope we'll make it happen someday.
I love that you are open minded about your children's futures. My grandmother saved money for my older brother and me, and she made it clear it was only to be used for college. College wasn't right for my brother, and it caused such a bitter rift between them at the end of my grandmother's life. It was so hard to watch. My grandmother simply couldn't be proud of my brother unless he went to school and he couldn't enjoy her company without feeling like he was a disappointment, it was terrible.
Thank you for trusting your children!
You are so uplifiting Kristen!! I always click the "X"on this site with a huge smile on my face. I am not nearly close to having children in college...children for any matter and I know that through the years my opinion will change, but as of now, I totally agree and thank you for sharing your future plans... You are so personal and it really makes all of us readers feel like you are a friend! Thank you a million times over!!
You could also put some of that money into CD's, as they often have much better rates than ING, although they are pretty poor right now. Just roll them over as they come due, unless you have a kiddo ready to go to college. Still a secure rate, but better than most savings acc.
The last child of the 2 generations I have raised will be a college graduate in 2012. I started saving in a 529 account when she was very young. Because she has received federal grants and scholarships for all her college expenses, she has used her 529 funds for 2 summers of study abroad and most recently for an iMac Pro! There are so many creative ways to pay for college or any further education. As for me, I am thinking of returning to study studio art...free classes for those of us over 65 at my local community college.
I really like your view on a college education for your kids. It was ingrained in my head, by my parents, that I would attend 4 years of school and get a Bachelor's degree. Yet, two years after graduating, I still don't have a job in my field of study and it makes me wonder if college is worth it after all. I think it may have been better for me to wait and see where my interests lie and perhaps I would have chosen a different path.
We have not started a 529 plan yet for our daughter, but I know my parents have discussed doing so for all of their grandchildren. You bring up a good point about wanting not to box your children in. The world is a different place today, and a bachelor's doesn't got as far as it used to. I think it's more important for your children to be learners for life than college graduates. Thanks for a great post!
I've looked at this as well. I decided to not go with the 529 because there seem to be some restrictions of where the child could use it. We decided to open a savings account for her (joint with her name on it as well) to start saving for college/future. My sister and I both had mutual funds set up for us from our inheritance when our grandfather passed away, which was to be used towards college. However, neither of us used them that way. I went to the Naval Academy and my sister received the Florida Bright Futures scholarship. It was definitely nice to have the option in how to use our "college" funds.
Thanks for sharing Kristen!
Glad you are talking about this. You provide good insight. I have an issue with saving because the U.S dollar is losing value. That may not be music to the ear and you may want to delete this. I think parents need to consider their children's bent, like what you and Mr Frugal are doing and find strategies that works for the family. It is good to save because you know there is something better in your future and you are planning for your children's future. When investing for your children's future do not invest in the commodity--money like the U.S dollar that is losing value, but maybe you can invest in agriculture and precious metals (its expensive now). You invest and save now, but when the amount build up, invest in something that cannot lose purchasing power. I do not know if I am making sense. I think about my family and sibling's future and this declining economy.
Seems to me that one advantage home schooled kids have is the flexibility to hold jobs as teenagers. I think that a kid who has worked and saved some money for his or her college education might be a kid who will have enough real life experience to choose their area of study carefully (i.e. it will be something that they are really interested in and want to pursue after college, not just that it will be a major that makes them more money) and appreciate it and work hard while they are in college. That is, of course, assuming that the economy has picked up and the types of jobs that teenagers get are available.
That pudding was a great recipe. I did attend college and so did many other people I know. It only did a few of them good. You have to take other things into consideration like the cost of clothes for the job and ect.. It only pans out for some people. The best course for anyone to take is home economics for survival. Consulting is a good field or having your own business. Those people make the most money it seems.
Living in the UK this wasn't something that was an issue when I was 18 and ready to go to University. There were no tuition fees etc... but there was a cost of living in terms of housing, food etc... I didn't have any money and my family couldn't support me so I turned down my place and decided to hit the job market instead and studied part-time at night (for many years!). It worked out fantastically well, but was hard work. I do wonder if I'll regret in my old age not experiencing Uni life, but really only from a social angle, academically I probably personally did better by not having the other distractions. As my kids get older things are different now in the UK - we have to pay for them to further their education. It just seems so far off! Rather than a University fund, we are just saving for them to make their own decision at that time - be that travelling, education or whatever. My only wish for them is they pursue what they enjoy and be true to themselves. Lisey's ambition of a pastry chef sounds perfect to me!
As many posters have pointed out, 529 plans can be used to pay for educational expenses of family members, not just siblings, but cousins or other close family members as well. As far as savings- again, as others have pointed out, savings money should NOT be in the kids names or it will make financial aid difficult.According to my financial planner, the two things that do not count against you for financial aid are 1) retirement accounts and 2) your primary home. Although I have 529 plans that have enought for each to go to one year of State University, I have decided that I need to have an "oxygen for me first" mentality as far as my retirement goes - so although I still contribute $50 a month to each 529, I am putting all of my savings into my retirement accounts. Given that I had my first kid at age 40 (he will start college just after I turn 59) and that I will be able to draw on my retirement without penalty age at 59.5, I plan to contribute only to retirement and use that for college for the oldest as well as his younger brother. Sounds like you are thinking ahead and that is what really counts!
Yes, our ING accounts for the kids are in our names, not theirs. And I totally agree about not skimping on retirement savings...we're putting much more into retirement than into college savings.
The non-specific savings account idea is exactly what I want to do. If you save $20 per week from birth to 18th birthday, you will have $18,000 for each kid. (this is something we are behind on, but $20 per week is not too bad)
I worked full-time when my child was in school. She attended after-school childcare up to the end of grade 6, at $77 per week. From the start of grade 7 to the end of grade 12 (6 years) I set aside that $77 a week that used to be childcare money, and it added up to $22,000...enough to pay 3 years' tuition. She is now at university.
I may and probably am in the minority, but I believe a college education is valuable not just for the degree, but for the opportunity to learn differing points of view, learn about others, and just to have the college experience. I've met many people and you can tell those who have attended college versus those who have not. Whether my child decides to use his degree or not, college isn't an option, it's a requirement.
That was awesome! I couldn't have agreed better! Save their money and let them use it toward their own benefit, college or starting a business or piano! I love it. I started college too but I didn't get a degree, I don't regret it either, I know my limit and abilities too. I'm sure your kiddos will turn out fine and the Lord will always bless them as long as we seek FIRST the Kingdom of Heaven!
I am not sure how I have missed out on this quote, but that is AWESOME!
'I am not going to let the perfect be the enemy of the good.'
I skimmed through this post on my phone. I could not tell you much about it (even though I know that you have good information in it). But, I caught this quote. In the hustle and bustle of my world, this is fantastic advice.
Thanks!
Something stuck out to me in this piece and I really liked it. You realize that not all of your kids must go to college in order to have a fulfilling career. I live in the Bay Area in California and a major assumption is that everyone will go to college. A friend of mine had a baby in 2010 and said "He's going to graduate in 2022!" I said, "Wow, he'll graduate high school in 2022." And she said "No, he'll graduate college in 2022." It's just assumed.
I went to college and graduated with a BA in 4 years. My brother went to college and didn't graduate after 3 years so he left-college just wasn't for him. He has a career and even started his own business.
College isn't the end-all be-all of education. It's great if you want to go, but not everyone needs to.
I opened a 529 account for my kids. It was only after I opened it that I found out that I can only re-allocate the accounts once a year. That seems awfully restrictive to me, especially when computers can "high frequency trade" on the stock market all the time. I don't think I would have opened up the 529 if I would have known that.
I must be the odd duck out but in my house it is college school or tech school or something or you aren't living here after 18 years old. Even pastry school costs money and experience. I just read a blog the other day about a pastry chef in my local town you went to Spain to train at one of the top restaurants there. She probably didn't get paid while being trained but needed money to pay for room and board. I really don't care what my kids end up doing but they are definitely going to get some sort of degree or certification, etc.. before they hit the real world. It can be in anything from nurse, hair dresser, chef, or just a regular old degree. I value education way too much to let it slide. I do believe that going to chef school is an education because there is so much more to being a chef than making a good meal. We are saving as much as we can. The grandparents did open a 529 account that they deposit money in. Plus, we have savings accounts for the kids earmarked just for college. I work at home and my entire paycheck goes into their college fund. We just use my dh's pay for retirement and everything else. I hope my kids do something exciting with those 4 years before what I consider "real" adult hood. I hope they go away and live in new place and form their own ideas.