it’s hard to fathom ryann doing the same things i did in college (dear God, please let her not like alcohol…amen)….but i’m not stupid either and know that the devil can lie (pun intended) behind blue eyes. i’m glad she’s not lying to us yet and hopefully will be able to talk to us about about everything that’s going on (but probably won’t…b/c well….we’re her parents and who does?).
i digress…we’re talking mostly about money. what percentage should go towards college? what’s the projected amount you should save per child…and can you afford it or will a certain amount be on student loans. of course the answer is, as always, it depends.
money is SO taboo in our society (mostly the US), and it probably half the reason why the US is in the place it is. it’s acceptable to run a $50k cc bill on 13 different cards. however, i love operating outside of my comfort zone…it makes me happy actually…maybe b/c it’s a thrill. so…
LCW and i were riding into work the other day and chatting about how we would handle if Ry wants to go to an expensive college (her and I both went to out of state colleges that were a bit pricey). it’s great having parents that were in a position to help us out a bit, but like most folks, we did sustain some student loans that we’re still paying on. a few questions in our convo:
question: would we try to talk her into a cheaper option (community college, state school)?
answer: no
question: are we supportive in her joining a sorority?
answer: as long as she has a supportive reason for joining….oh and that it’s not that slutty one
question: will we help her move in with her boyfriend?
answer: uummm, no (and we definitely will not pay for her living expenses)
question: how much should we save for her college fund?
answer: …..
hence, i start researching….so what’s it gonna cost ya:
4 Year Public School – in State
The current average in-state tuition is around $13,000. Assuming 7% college cost inflation, you can expect to pay:
$81,000 if you start college in 5 years
$114,000 if you start college in 10 years
$195,000 if you start college in 18 years
4 Year Public School – Out of State
The current average cost for out-of-state tuition to a public university is $19,000. Assuming 7% college cost inflation, you can expect to pay:
$118,000 if you start college in 5 years
$166,000 if you start college in 10 years
$285,000 if you start college in 18 years
4 Year Private
It costs about $28,000 a year to attend the typical private university. Assuming 7% college cost inflation, you can expect to pay:
$174,000 if you start college in 5 years
$245,000 if you start college in 10 years
$420,000 if you start college in 18 years
[source: 529s.com]
So, without any kind of ROI (you may have in a 529 or other fund)…but to just straight up save the money under your pillow every month….
For the cheapest average option of a 4 year public school:
18years * 12 months = 216 total months until she starts school (minus 6…damn = 210)
$195,000/210 = $928.57 per month
Wow…bye bye retirement fund…and this is only for one kid…and the cheapest option…
Oh ryann, don’t worry. even if you don’t have a job or health care, good ole’ uncle sam will support you…b/c “This is a big f–king deal”
This is uncharted territory for us. How is everyone else handling this? What if you have multiple kids, do you save for worse case scenario (all go to private ivy league colleges) or do you only let the smartest one go (I’m joking…sort of)?
