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How Much Do You Contribute for College/savings??

How much if any do you contribute to your child's college and/or savings fund. I decided to become a SAHM about a year ago to raise our son and daughter which has been wonderful however, due to financial constraints we are only able to save $25 a week for each. Although I try to be vigilant, even this amount is difficult at times. Also, does anyone have a college fund set up and if so what kind? They each have a savings account but curious about other options.

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$0.

I'm still in school.

By the time I'm done with school, kiddo will be starting.

We call it the "Paying for College Perpetually Plan".

2 moms found this helpful

I am truly blessed...my in-laws have paid for all of my children's college education. They have 4 years worth of all expenses paid college at any State university. It can be transferred to other state colleges but you have to take a financial hit on it.

We live in WA and it is called GET.

I am eternally grateful!

2 moms found this helpful

None. My daughter is paying for school the same way I did - grants, loans, and working two jobs while going to school.
I would have liked to have been able to provide her with a college fund, but it just wasn't possible.

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I don't put much away, it's THEIR education and I think they should pay for it. I would be more concerned about your retirement and your medical care and or disability when you get older. That should be a priority. That is a big mistake many adults make. Then when retirement comes they can't afford to live a comfortable life. By them paying for their OWN college they will appreciate it more and also take it more seriously. Being a College Professor I see a difference in attitude and seriousness of their education depending on how or who is funding it. I would put away what you can but don't stress over it.

7 moms found this helpful

Big picture, what's the plan? Here's the order of priorities. Make sure the household bread winner has maximized his/her disability insurance coverage. The amount offered through work often isn't enough. Second, make sure both of you have life insurance. You want at least 10 times income. Very important that BOTH of you have coverage. Purchase life insurance from the highest quality carriers. Northwestern, NY LIfe, Mass Mutual, Metlife or Guardian. Term life that can be converted to permanent coverage.
Do you have at least three months of expenses in savings?
Are you contributing enough to retirement?
Long story short, you can borrow for college but not for retirement.
I know you asked about college funding but the reality is that for middle class folks, there's a lot of other priorities that should come first.
Daryl Zerveskes has an office in Manchester, NH. He's helped a lot of middle class families get their finances in order. Might be worth looking up someone like him to look at the big picture.

5 moms found this helpful

I think we are in the minority but we feel it is our duty as a parent to get our daughter out of college debt free. Free ride.... some may say so but she works her butt of in her classes, cheerleader, violinist and babysits.

The year I got pregnant, we started her fund to have $10,000 by each birthday each year. When the market fluctuated, we added more to make up the difference.

Right now at 16 she is fully funded, and we are still funding her because she has aspirations to go to an Ivy league school and be the best.

Some say a college degree is not worth anything... I guess that depends on the lifestyle you choose for yourself and your children.

We believe it is vital and we have post graduate degrees. It does make a huge difference.

We have several sources, 529, numismatics, savigs bonds and regular savings.

Of course we feel it is our obligation to provide this as responsible parents, it is also our obligation to make sure our retirement is fully funded and she has no worries about our care as we get older.

All that said, yes, we are in the minority but college is not an option at our house, she sees it as an extension of her schooling and who wouldn't want to be educated??

You do what you can. Not all families can provide the same but whatever you provide will be appreciated. I can't believe how some parents just let their kids go in debt or just blow it off. Kudos to you for thinking about your children.

3 moms found this helpful

We don't have a set amount that we put aside for it, they each have a savings account and 2 of them contribute now. our 16 year old ds is working and puts some aside each week, our 13 year old dd has had a paper route for 3 years and she puts some aside weekly. My parents had nothing set up for my sister and I and we both paid for our own completely. I have 2 degrees and worked part time during the school year and 2 jobs each summer in between and with student loans I did it. I paid them off within 10 years (maybe less, it was awhile ago now). I totally disagree with Ellis, it is NOT a parents responsibility to pay for college. With 3 kids and their activities and saving for retirement, we just cannot and will not pay for the whole thing. I think kids will appreciate the costs and hard work if they at least contribute some. So, L., you made a choice to stay home and I see that as more beneficial than working to pay for their college funds.

2 moms found this helpful

i haven't had a chance to read the other responses so i apologize if i'm repeating anything. if you have the extra money, do one of those state things. i'm in MA and here it's called a MEFA. we take every cash gift she gets (bdays, xmas - $5 from greatgrandpa, $25 from aunt, etc) and put it in a savings acct in her name (plus we put all our change in a bucket and roll it up and that goes in her account too - you'd be surprised how much that can be every few months) then when there's $500 in the savings account, we move it into the MEFA and start again. especially with close relatives - its easier to say "no more toys, money for college please", even if just $20.

By the way, you shouldn't fee bad, at $25 a week, you are probably doing a lot better then the rest of us.

then, remember what Suze Orman says - saving for your retirement is WAAAAY more important. i don't know how old you are, but chances are there'll be no social security when we all reach 65...kids can get scholarships, grants and loans...plus having a loan to repay when they're 22 is an excellent way to teach fiscal responsibility. if they know they are paying for college (in part or all), perhaps they'll take it more seriously - not as a god-given right.

2 moms found this helpful

We were very fortunate that my mother purchased the Texas Tomorrow 529 fund the first year it came out. She paid about $4000.

Our daughter is now a double major junior in an out of State college (actually up there with you in one of the 5 colleges!).. This plan has paid about $8000. per school year!

With Tuition, room and board.. not counting the Travel, books, health insurance, and money per month for necessities.. her Bill runs $58,000 per school year.

She has always been an excellent student so she qualified for Scholarships and grants..

I suggest you save as much as possible and look into your states college payment plan. It actually looks excellent..

http://www.mefa.org/saveforcollege/saveforcollege.aspx?id...

FYI, there is no way our daughter could work and attend this school full time as a double major. She really does spend time studying and doing her work at school. When we wanted to have children this was one of the main reasons we only had 1 child.. We knew there was no way, I could be a SAHM and we could send her off to college and afforded more than 1 child.. We felt we wanted the very best education for her and were willing to support wherever SHE wanted to attend.

2 moms found this helpful

I am truly blessed...my in-laws have paid for all of my children's college education. They have 4 years worth of all expenses paid college at any State university. It can be transferred to other state colleges but you have to take a financial hit on it.

We live in WA and it is called GET.

I am eternally grateful!

2 moms found this helpful

$0.

I'm still in school.

By the time I'm done with school, kiddo will be starting.

We call it the "Paying for College Perpetually Plan".

2 moms found this helpful

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