Saving For College For Kids Calculator
September 13th, 2006
Question: Parents: how are you saving for your child’s college education?
According to a financial aid calculator I used online (http://www.finaid.org/calculators/costprojector.phtml), it’s going to cost each of my children about $150,000 to attend a public university for four years. (The calculator accounts for rising tuition costs stemming from the fact that state governments don’t pay for higher education as much as they used to.)
I’m not a millionaire, so I’m going to fall way, way short of $150,000 for each child. But to the extent that I can, I want to spare my kids from having a crippling amount of debt after their college graduation.
What method of saving for college are you all using? What are the advantages of the method you’re using?
Answer: Suze Orman says DON’T save for your child’s college! She says to put that money towards your retirement. She said that kids can find their own way to go to college and it makes them more appreciative of it.
I would recommend that you encourage your children to choose cheaper schools (for instance, you can go for a year here in Kentucky at the University of Louisville for about $5000 per year – that’s tuition only). I know the state schools up north and out west are MUCH more expensive.
Encourage your children to go to a local college and live at home the first two years. Many people are doing this. They complete their general educaiton credits at the local community college, then transfer to the school they want to graduate from. It saves money and the kids can live at home if they need to.
You can also make your kids take year off between high school and college. Make them work and pay rent (or even get their own apartment). That way, college will mean more to them because they will have tasted a little of what the “real” world is like.
Teach your kids to only get loans for what they NEED in school. If you want them to learn about crippling debt after college – have them contact me!!! I owe $60,000!!! And all I have is a BA.
Also, consider having the kids start college courses while still in high school. Usually, these aren’t as expensive as taking them after you graduate. The high school counselor can probably help you find these programs. Have the kids take courses online in the summer too.
Another more drastic measure is to find one of the few states that pays for its high school graduates to attend state college and move to that state.
You could also get a job at a college and your kids would be given a discounted tuition rate. Or you could encourage the kids to get part time jobs at companies that will pay for their schooling, like UPS.
In my state (Kentucky) there’s a plan where you can start purchasing your child’s tuition now at the current tuition rates. You pay a monthly payment to the state and they put it in an account for your child. That way, your child’s education is already paid for (at a state school) when your child gets old enough to go. Check to see if your state has this program. If not, contact your state legislator and find out why your state doesn’t have a program and if they could start one, or how your legislator thinks you shoudl pay for your children’s education. Talk about trying to keep them in the state, blah, blah, blah… The states are all concerned about keeping citizens – especially educated ones. 
It’s true!
I hope your kids realize how lucky they are to have someone in this world who wants to help them out. I know I’m out here all alone and it isn’t any fun.
Good luck!
Adam Bold – Back to Basics: Rebuilding Your Personal Wealth
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Tags: college, education, finance, financial, money, saving for college for kids calculator