College, Grandkids, and Assistance
08-09-2014, 07:31 PM
#11
Registered User
I think one of the most important statements I ever heard from a financial planner type was, "Your kids can borrow for college. You can't borrow for retirement."
08-10-2014, 02:36 AM
#12
You reading and paraphrasing of the stats are slightly askew.
Expect is the keyword there. I expect to retire at 50. I expect to be promoted.
It's not necessarily happening. And since the two groups cited are selling U529 funds.... their data might be "optimistic"
As in they are optimistically expecting to get more money in their funds if they create the social expectation that you should be doing it since everyone else is.
Sadly few if any ever get called on floating BS statistics that are outright lies.
A study conducted jointly by the Massachusetts Educational Financing Authority and Fidelity Investments finds that 60 percent of grandparents in the state are saving — or plan to save — money for their grandchildren’s education.
Of those saving/planning to save, 51 percent expect to contribute more than $50,000.
Of those saving/planning to save, 51 percent expect to contribute more than $50,000.
It's not necessarily happening. And since the two groups cited are selling U529 funds.... their data might be "optimistic"
As in they are optimistically expecting to get more money in their funds if they create the social expectation that you should be doing it since everyone else is.
Sadly few if any ever get called on floating BS statistics that are outright lies.
08-10-2014, 04:17 AM
#13
Registered User
$50,000 pays for one (1) year at a top tier college. Figure on $250,000 for all four years including "incidentals."
Then... figure on two more years of graduate work for a masters or two. Otherwise they'll be working the telephones as "financial consultants" or working as shift leaders at McDonald's.
Top tier colleges insist on top tier work. Can't hide in a class of 10.
I couldn't afford my '06 S2000 back in '06 as I had to pay tuition.
-- Chuck
Then... figure on two more years of graduate work for a masters or two. Otherwise they'll be working the telephones as "financial consultants" or working as shift leaders at McDonald's.
Top tier colleges insist on top tier work. Can't hide in a class of 10.
I couldn't afford my '06 S2000 back in '06 as I had to pay tuition.
-- Chuck
08-10-2014, 05:05 AM
#14
Former Moderator
How true. Just paid the last semester tuition for our daughter at TCU. The college fund that we started when she was born was woefully insufficient. 
$50,000 pays for one (1) year at a top tier college. Figure on $250,000 for all four years including "incidentals."
Then... figure on two more years of graduate work for a masters or two. Otherwise they'll be working the telephones as "financial consultants" or working as shift leaders at McDonald's.
Top tier colleges insist on top tier work. Can't hide in a class of 10.
I couldn't afford my '06 S2000 back in '06 as I had to pay tuition.
-- Chuck
Then... figure on two more years of graduate work for a masters or two. Otherwise they'll be working the telephones as "financial consultants" or working as shift leaders at McDonald's.
Top tier colleges insist on top tier work. Can't hide in a class of 10.
I couldn't afford my '06 S2000 back in '06 as I had to pay tuition.
-- Chuck
08-10-2014, 04:05 PM
#15
We are not, nor will we be in a position to extend that kind of help. We have helped with a few things as they grow up. Right now we are helping to pay for braces for the granddaughter. We offered, they did not ask.
We are still working and saving for retirement. If we can extend any help towards their education, I'll be happy to do so.
We are still working and saving for retirement. If we can extend any help towards their education, I'll be happy to do so.
08-15-2014, 07:19 PM
#16
We did a monthly deposit for each of our kids from birth into no-load mutual funds...increasing the amount as we were able. The balance was sufficient to pay for 4 years at Swarthmore for our dtr and at Bowdoin in Maine for our son. We were not SUPPOSED to help them in grad school...but sh*t happens. We provided small amounts to our dtr to achieve her BS in nursing and later on for a Master of Divinity deg. We also provided small amounts for our son's MA in German-European studies, and now....at age 31...he's starting a PhD program in two weeks. Guess who is supplementing his stipend with a monthly check so that he can survive?
Our daughter is pretty financially independent now, but it may be 5 years before the son is "off the dole". For better or worse, he knows that we can afford it...so there are issues of entitlement that do make me happy. Thank goodness they are both good "kids" so things could be a lot worse.
We would be happy to have Dave's "grandchildren" problem b/c that would mean that the "kids" were probably solvent and independent. Or maybe NOT ?????
Our daughter is pretty financially independent now, but it may be 5 years before the son is "off the dole". For better or worse, he knows that we can afford it...so there are issues of entitlement that do make me happy. Thank goodness they are both good "kids" so things could be a lot worse.
We would be happy to have Dave's "grandchildren" problem b/c that would mean that the "kids" were probably solvent and independent. Or maybe NOT ?????
08-17-2014, 04:38 AM
#17
Our kids didn't cost us very much for college. One daughter put herself through with assistance from employer reimbursement plans. One daughter got some help but also took loans. My son went to 2.5 years of state schools and quit before he got his degree. We started college funds for the grand kids and throw a few bucks into them now and then. We hope there will be enough in each fund to pay for one year of tuition when they reach college age. Obviously we hope the amount of the account ends up being much more than the amount of the contribution, but as of now, both accounts are only slightly above the amount of our contributions.
As Rob said, the cost of college is not what it once was. I could pay my own way through part time and summer jobs. I think U-Mass Boston tuition cost $200 a semester back then. Today, with all the fees, they jack up the tuition alone to $6,000 per semester (minimum). So $12,000 for tuition plus books, supplies and transportation costs assuming the kid gets to live at home for free. It would be pretty difficult for a kid to pay for all of that today with part time jobs. And that's the low-cost plan. Good luck if you are paying for private school and room and board. That's why kids come out of college loaded with debt.
As Rob said, the cost of college is not what it once was. I could pay my own way through part time and summer jobs. I think U-Mass Boston tuition cost $200 a semester back then. Today, with all the fees, they jack up the tuition alone to $6,000 per semester (minimum). So $12,000 for tuition plus books, supplies and transportation costs assuming the kid gets to live at home for free. It would be pretty difficult for a kid to pay for all of that today with part time jobs. And that's the low-cost plan. Good luck if you are paying for private school and room and board. That's why kids come out of college loaded with debt.
08-18-2014, 05:22 PM
#18
Along the lines of great headline using statistics.... from usatoday
" A third of people have nothing saved for retirement" full article
it sounds dramatic but wait, most of that group, are 18-29 years old. You know the kids who are trying to pay off school loans and buy a house.....
" A third of people have nothing saved for retirement" full article
it sounds dramatic but wait, most of that group, are 18-29 years old. You know the kids who are trying to pay off school loans and buy a house.....
05-07-2018, 02:01 PM
#19
Registered User
this thread from a few years ago. Has your status/opinion changed with regards to assistance to your kids/grandkids? I am actually reporting on a positive development related to the +1's son, who had some very difficult years after his parents' divorce (he was 13, a tough age under normal circumstances). There were several other factors relating to his difficulties, but regardless it wasn't fun. Well, I am happy to report that he seems to have turned things around in a major way. He's still in college (took him awhile to get in the groove), but hoping to graduate next spring. The best news is he got straight As this semester and made the Dean's List. We are very proud and of course hope this trend continues. Several factors contributed to this turnaround as well, but I think it's mostly maturity and a more settled life. 
05-07-2018, 08:43 PM
#20
Yes, things have changed. We continued to contribute and the stock market helped to greatly increase the size of the grandkids' 529 plan. Inflation, greed, stupid salaries for brand-name professors and programs to assist low income students at the expense of those paying tuition (look it up) has increased the cost to attend a top college to $65K per year. So we have saved a good chunk of $ for each of them, but not enough for a full year at a top school. One is in HS now and the other in middle school.