Parents: Do you save for college?

Discussion in 'The Water Cooler' started by Hooker, Aug 15, 2013.

  1. tynimiller

    tynimiller Legendary Woodsman

    Joined:
    Oct 17, 2011
    Posts:
    12,519
    Likes Received:
    3,579
    Dislikes Received:
    5
    Location:
    Northern Indiana
    I think good solid parenting will always desire to provide as much as we can for our children. However, even if my situation in the future were to allow me to pay for any of my potential children's schooling 100% I atleast right now wouldn't. I most surely would pay some, perhaps split with them, and I would also make sure their dorm/apartment has food as needed but I want them to have to understand college isn't a free ride and requires work to both make it worth it and pay it off. I want them to understand the value of a dollar and be there as much as a can to assist if they should fall or struggle along the way.

    As I read somewhere I don't want to be the dad that works hard in order to give my kids everything they need and possibly want, I want to work hard so they have a template to follow in life.
     
  2. Heckler

    Heckler Grizzled Veteran

    Joined:
    Sep 7, 2011
    Posts:
    5,079
    Likes Received:
    1,114
    Dislikes Received:
    1
    Location:
    Topeka, Kansas
    Both my wife and I paid for our college in full. In fact we are still paying for it. :( We did open up a 529 for each of our 3 children. We participate in this as well as their grandparents regularly. Realistically they will never have enough in the account to give them a full ride. Our hope is it be enough to pay for their living expenses, books, etc...
     
  3. Germ

    Germ Legendary Woodsman

    Joined:
    Jul 24, 2008
    Posts:
    15,054
    Likes Received:
    3,068
    Dislikes Received:
    44
    Location:
    "The" Michigan
    I agree, I'd spend twice that on my kids and work twice as hard for them.
     
  4. sachiko

    sachiko Die Hard Bowhunter

    Joined:
    May 19, 2010
    Posts:
    1,173
    Likes Received:
    4
    Dislikes Received:
    0
    Location:
    Michigan
    Mama started putting money away for my college from the beginning. She never told me though. I got a full scholarship (tuition and books), and I got married in high school, so she got to keep it all as her retirement fund. I don't know how much she has, but she says the funds are worth waaay more than she invested.

    We're planning to do the same for our girls. We live much more frugally than most of our friends. Our little house is paid for, our '03 Cavalier, and our '98 S10 Blazer are both paid for. Mama fills in for babysitting as needed. Our only vices are going out to the bar a couple times a week and the seafood I buy for meals.

    Breastfeeding is the way to go for sure. It's always there, always ready, and always the right temperature. I nursed each one for a little more than two years. Neither has ever had milk from a bottle.


    :sheep:
    May The Sheep Be With You
     
  5. Dan

    Dan Senior Member

    Joined:
    Jul 25, 2008
    Posts:
    7,305
    Likes Received:
    2
    Dislikes Received:
    0
    Location:
    NW Wisconsin
    Depends what they go to school for. If they waste their time getting a **** degree then they're on their own. If they go to school for something worthwhile, we'll help them out all we can.
     
  6. virginiashadow

    virginiashadow Legendary Woodsman

    Joined:
    Mar 6, 2009
    Posts:
    24,976
    Likes Received:
    35,809
    Dislikes Received:
    27
    I agree, and no my wife and I don't currently save for our kids probable future college tuition.
     
  7. coilguy

    coilguy Newb

    Joined:
    Apr 8, 2013
    Posts:
    48
    Likes Received:
    0
    Dislikes Received:
    0
    Location:
    Minnesota
    I was about to chime in but someone said whole life is a great product and I will not pick a fight here.

    Always max out your retirement contributions especially the portion that is matched if you have that option.

    Talk to a financial planner in your area who you can tell your situation and net worth too. Good financial planners will help you in many ways. I bet not one will say buy whole life. It isn't a savings tool it is a tool to boost sales commission. The only people I have ever heard say a good word about whole life are over 75 or whole life agents.

    529 is a very good vehicle in my opinion and this entire post is totally just my opinion. What I did is save in a 529 and then I told my kids based on the grade they recieve will determine how much of the cost per credit I will obsorb for them. If they get an A or an A- I will pay 100% of the credit. a B of any sort I get 80 %. A C+ or a C we drop it to 50% and if they get C- or less 0%. I also set it up so they get loans through college and when they graduate I begin to pay. If they do not finish, my responsibility switches to zero.

    It motivates them to do good and to finish but also shows them how much it really costs as the loans are on them as much as possible until payback day or they drop out. So far it has been expensive but worth it to me and to my children. My last one starts college next Thursday.

    CG
     
    Last edited: Aug 16, 2013
  8. buttonbuckmaster

    buttonbuckmaster Grizzled Veteran

    Joined:
    Jul 25, 2008
    Posts:
    4,182
    Likes Received:
    969
    Dislikes Received:
    0
    Location:
    southern IL
    That was me. It can be a great product, but not for savings. Selling life insurance on the idea of being an investment should be criminal IMO.
     
  9. JGD

    JGD Die Hard Bowhunter

    Joined:
    Sep 29, 2011
    Posts:
    2,554
    Likes Received:
    617
    Dislikes Received:
    1
    Location:
    North Texas
    I paid tuition and my son worked full time and paid all other expenses for his out of state education. As long as he was invested in his schooling, so was I. I don't recall giving him any spending money. Had his grades suffered I would have stopped paying and he would have figured out on his own if he really wanted to go to school. He later told me he had no regrets about working through school and it helped him when he had job interviews.
     
  10. tfox

    tfox Grizzled Veteran

    Joined:
    Jul 25, 2008
    Posts:
    5,915
    Likes Received:
    8
    Dislikes Received:
    0
    Location:
    henderson ky
    I'm against an entitlement society and this whole issue feeds into the entitlements of our society today.

    My daughter got a reality check today. She text me asking if I could put some money in her account. She chose to take a baby sitting job this summer for family that didn't pay very well and turned down a better paying job. Then, she chose to go to florida with a friend the week before school and spent that money. Her job at school doesn't start for 2 weeks because she is at school early due to dance. Due to her poor decisions, I chose to tell her no, I'm not putting money in your account.

    Sometimes lessons are learned hard.

    Sent from my SAMSUNG-SGH-I317 using Tapatalk 2
     
  11. Muzzy Man

    Muzzy Man Grizzled Veteran

    Joined:
    Oct 26, 2011
    Posts:
    5,364
    Likes Received:
    11
    Dislikes Received:
    0
    Location:
    Montgomery, AL
    Find a good financial planner, and let them help. 100.00 tax deferred per month from your salary and she'll be set. If she scholarships out... go to Tahiti.
     
  12. AUbowhunter

    AUbowhunter Weekend Warrior

    Joined:
    Sep 29, 2011
    Posts:
    810
    Likes Received:
    0
    Dislikes Received:
    0
    Location:
    North Alabama
    I will be saving for both college and weddings as soon as my own student loans are paid. At the moment we are teaching our oldest daughter to earn things. If she asks for some juice after she's already had some or asks for a snack I ask" how are you going to earn it?" She has recently started coming up with things on her own like " I can pick up my colors and papers". Perfect juice is served.
     
  13. JGD

    JGD Die Hard Bowhunter

    Joined:
    Sep 29, 2011
    Posts:
    2,554
    Likes Received:
    617
    Dislikes Received:
    1
    Location:
    North Texas
    Totally agree with you on this...
     
  14. Chris1982

    Chris1982 Weekend Warrior

    Joined:
    May 5, 2013
    Posts:
    631
    Likes Received:
    3
    Dislikes Received:
    0
    Location:
    Rural NW Louisiana
    I'm 31 and just starting college next year, we plan on saving to help our kids with college but were having a hard time getting it started.
     
  15. Heckler

    Heckler Grizzled Veteran

    Joined:
    Sep 7, 2011
    Posts:
    5,079
    Likes Received:
    1,114
    Dislikes Received:
    1
    Location:
    Topeka, Kansas
    I understand your pain. We went through the same thing. Just remember the more cash you can dump in early the higher the return!
     
  16. fletch920

    fletch920 Grizzled Veteran

    Joined:
    Apr 8, 2009
    Posts:
    8,918
    Likes Received:
    4,277
    Dislikes Received:
    41
    Location:
    iowa
    Big difference between whole life and Universal Life. Those that don't understand it, will lump them all into the same category. I know of more than one financial planner that uses life insurance as a financial tool and they do not sell it. Life insurance should not be sold as a savings product. But, UL can and does have some very specific uses that can be an important piece of the financial puzzle. Term insurance is great when it fits. But, I have a friend that was diagnosed with diabetes while in college and can no longer get a decent amount of life insurance. If he dies, his family is going to be in rough shape financially. If a parent or grandparent buys a UL life policy for a child when the premiums are very low, they will have it for life, no matter what becomes of their health situation. If you pay the premiums up early in the contract, it will actually cost less than buying term life insurance later in life or risking being uninsurable later in life when you really need it.
     
  17. Schultzy

    Schultzy Grizzled Veteran

    Joined:
    Jul 25, 2008
    Posts:
    9,692
    Likes Received:
    5
    Dislikes Received:
    0
    Location:
    Minnesota
    When my daughter was born we immediately set up a savings account at my bank. Here and there I'll throw some money in there. By the time she graduates I hope there's a good chunk in there. I plan on helping her as often as needed as long as she is doing her part while in college. Will I pay for all of her college tuition? No I don't think so but I want to help her out the best I can as I believe times are going to be very tough 20 years from now with the way this country is headed.
     
  18. dnoodles

    dnoodles Legendary Woodsman

    Joined:
    Oct 13, 2012
    Posts:
    12,519
    Likes Received:
    16,531
    Dislikes Received:
    20
    Location:
    People's Republic of IL
    I'm very surprised only one person has even referenced the military route (and that was for themself; not their kids.) While you obviously can't force your kids into the military, you sure can encourage it. I know that quite a few kids who came back from the sandbox are messed up; but those wars won't last forever (and if they do, we got worse problems than paying for college.) Every person I know who served and ended up applying their earned GI bill credits has become a great success in life.
     
  19. Hooker

    Hooker Grizzled Veteran

    Joined:
    Feb 17, 2009
    Posts:
    8,045
    Likes Received:
    2
    Dislikes Received:
    0
    Location:
    Louisiana
    Sorry, but I'm not going to encourage my daughter to go the military route.
     
  20. dnoodles

    dnoodles Legendary Woodsman

    Joined:
    Oct 13, 2012
    Posts:
    12,519
    Likes Received:
    16,531
    Dislikes Received:
    20
    Location:
    People's Republic of IL
    I get it; but I work with 2 young women who are Nat Guard (GI bill grads.) They're very squared away.
     

Share This Page