College Savings for Kids - what are your goals?

[HouseHopeful]

Personal Finance are definitely Personal. I am curious though - what are some of your goals for college savings for your child/children? We only have 1 child and are not planning any more (unless adopting in the future). That being said, my personal goal is to save in a 529 for our daughter as well as a non-education savings vehicle of some kind.

My husband and I are both college graduates, but we have no idea what the future holds for our daughter. She could be artistic or academic or a little of both. So I do want savings within the 529 realm and outside of it. Our Little One is almost 10 months old, so our 529 savings is where we are starting and it is small for the moment. We haven't set any goals just yet.

So I am curious - what, if any, savings goals do you have for your child's benefit?

[disneysteve]

Our daughter is going into her junior year.

We paid 100% of our out of pocket costs from savings, mostly from her 529, for the first 2 years. There is a little left in there but it won't cover the next semester. We'll spend a bit more of current income for school and she will begin taking out some loans.

[creditcardfree]

I would highly suggest making sure your own emergency savings, and retirement are on track before working on college savings.

We have only saved within an Educational Savings Account. Originally chose this as our option as we didn't expect to be able to save more than $2K per year per child (we have two daughters). We have saved roughly $25K for each of them.

Our oldest is attending a state school (out of state), but with a renewable 4 year scholarship covering most of the out of state cost. We paid some of our first year costs out of current income and some from the ESA. We will do the same (using more money, because she has fewer scholarships) the second year. We will use two years of the Post 911 GI Bill and one year of loans. Long story, but the loans will likely occur in the fourth year. The fifth year is expected because she is a double major.

Our youngest daughter is only entering her junior year in high school, so it is clear yet what she will do or where she will go. But we do have savings for her!

My basic advice is to save as much as you can and are willing. Anything you save will help reduce loans or the need to work later.

[corn18]

...We will use two years of the Post 911 GI Bill

Are you still active duty? I am retired Navy and have 48 months of GI bill for me but I can't figure out a way to use it for my kids.

[kork13]

Our son is almost 1 y/o now, and my going on plan is to cover at least 50% of his education.... Whether that is at a college/university, VoTec/Trade school, or otherwise (side note, but I personally believe America has come to over-emphasize college as the only good option for kids after high school). To that end, we are saving into a 529 plan for him. We also have a UTMA savings account for him that he'll get access to when he's 18 for a more flexible source of money. We intend to have probably 3-4 kids over time, and plan to do the same for each of them.

[MonkeyMama]

I'd say that we don't have any college savings goals. Is fairly low on our list of priorities. My kids are 11 & 13.

Of course, part of the reason for the low priority is that college is so inexpensive where we are. Also, one set of grandparents has already given my kids enough money for college.

Since I have two kids close in age, I am fairly set on the community college route. (Certainly if that is all we can reasonably afford).

I've got 5 years until eldest is in college. We are starting to put more money away for that. But is nothing I would tie up in a college specific fund. Just trying to set aside more money to help, if we feel comfortable spending it when the time comes. But our retirement and financial security will always come first. (We've not done 529 plans because makes no sense for our specific situation).

{P.S. To be clear, we will fund college with some combo of them working, us working, and grandparents helping. We would not consider using debt to fund college. We mostly expect our kids to work. It's clear by this point they can handle work + school, so that is not a concern. I am open to the point that not all college paths are conducive to working, but even my husband was able to cash flow college by working just summers. So I think they can figure out something. Even if they just work in high school to save up for college. We are happy to help however we can as long as they are putting in some effort}.

[creditcardfree]

Are you still active duty? I am retired Navy and have 48 months of GI bill for me but I can't figure out a way to use it for my kids.

@tomhole, my husband is AGR Army. I'm not sure about GI Bill...but Post 911 GI Bill does allow for transfer of benefits. I think it's on the VA website. I would go there to look for more information or a number to call to see if it is an option for you. Definitely worth it if you can make it work!

[creditcardfree]

(side note, but I personally believe America has come to over-emphasize college as the only good option for kids after high school).

I agree despite having our oldest in college. She probably could be working in one year with one of her interests if she went to a community college.

[corn18]

@tomhole, my husband is AGR Army. I'm not sure about GI Bill...but Post 911 GI Bill does allow for transfer of benefits. I think it's on the VA website. I would go there to look for more information or a number to call to see if it is an option for you. Definitely worth it if you can make it work!

Active guard is the reason you can use the post 911 GI bill for your kids. That is an awesome deal. I am retired so I cannot transfer it.

[dawnwes]

I have said it several times on this board, but I will say it again,

Our current plan is to pay 100% of the local 4 year school and have them live at home.

They don't have to do this, but that is the amount we will pay. So, if they choose to go elsewhere, they will need to cover the difference.

That is what we can afford on DH's income without drastic changes to our lifestyle.

However, IF I can get a job, we can offer more. I would like to offer more.

But our kids are college age. Oldest is going to Community College currently. Middle son is a Jr. next year. Youngest is just going in to 7th grade.

[MonkeyMama]

(side note, but I personally believe America has come to over-emphasize college as the only good option for kids after high school).

Absolutely. Some in my family did not go to college and have done very well.

They are really getting indoctrinated in the public school system. I said something recently to my 11yo about not *having* to go to college and he looked absolutely horrified. & I mean, this is my child that questions everything. He was born a skeptic. I suppose I have to have some talks with him about that. I just want him to know there are other options and not everyone goes to college. But I was thinking, "Geez, they are laying it on thick over there." We went to college and our parents went to college. Most their classmates have parents that went to college. It just seems to be a bit much. (I would understand more if we were talking families who had never gone to college).

[corn18]

I didn't have a plan except to get loans (unsubsidized and personal). That changed when I came here and now the plan that has been implemented is I will pay for college up to in state costs (~$90k) and they will have to cover the balance. Oldest is in community college and youngest starts in state this fall. To cover the cost, I put $80k into savings over the past 3 years and will cash flow the rest. Since it was such a short timeline, all but a little bit is in a taxable account. If I had started when they were young, I would not put a lot into a 529 because who knows what they will end up doing. Would not want a lot of money in a 529 if my kid decides that college is not for them.

[dawnwes]

I didn't have a plan except to get loans (unsubsidized and personal). That changed when I came here and now the plan that has been implemented is I will pay for college up to in state costs (~$90k) and they will have to cover the balance. Oldest is in community college and youngest starts in state this fall. To cover the cost, I put $80k into savings over the past 3 years and will cash flow the rest. Since it was such a short timeline, all but a little bit is in a taxable account. If I had started when they were young, I would not put a lot into a 529 because who knows what they will end up doing. Would not want a lot of money in a 529 if my kid decides that college is not for them.

Is that with room and board?

[corn18]

Is that with room and board?

It is. In state tuition, room, board, books, medical, etc... runs $23,888 here in OH.

[TexasHusker]

Our budget will be $20-$30K a year on college for kiddo number one. If his grades stay good, we should be able to afford most schools out there on that number. We are hoping he attends a small, private school and plays on the golf team.

We've told him that if he plays collegiate golf, we will fund everything. If he doesn't play collegiate golf, then he has a part time job during the year.

If his grades slip, he will be headed to a state school. We won't be going into debt for college.

We hope to have the first two years ready to go when he starts, and we will fund the last two years with additional savings during his first two years, plus use some current income.

Same song and dance for our 13 year old, except substitute volleyball for golf.

Me and my wife are big believers in intercollegiate athletics participation if your kid has the ability - it teaches a lot of life long lessons.