PARENTS:How much have u saved 4 your child's college?

Question

i just read artile in newsweek that said most american parents arent saving nearly enough for their childs college. it said tht the average family has 12,000$ saved by the time their kids 17. i thought this number was extremly wrong.we only have 5,000 saved for our son ands 15 right now!how much u have saved?

Answer 1

We have two boys. My cousin started living with us two years ago and he is now five. We also have our son who isn't even a year yet.

So far, I cannot tell you how much exactly we save. Sometimes if we know how much money (in our own savings account) we have we will splurge and spend so, we don't keep track on exactly how much our kids have. We have put $100 into each of their account for the past year. If we are short on money we will only put $50 in. I figure we are starting out good. We also do savings bonds so they will build. I hope I have enough when the time comes.

It shocks me when people do not save. I do not want my kids growing up and being in debt when they step into adulthood, that is the reason we save.

When they go to college we expect them to work to provide themselves with the "fun" stuff--such as food, room and board, and other activities they want to be involved in.

Answer 2

I have a 6 month old little boy and we just started his college savings account. We are using a 529 plan to save for his future. After doing some research, and speaking to our financial adviser, we discovered that to pay for our son's entire college tuition for 4 years we have to save $200 every month. So...that is what we are saving as of now. We figure it will be easier to pull back later (if we need to) rather than try to save more. Plus, by starting while he is this young, we have more time for the money to grow through interest. Hope this helps. There are some good online calculators that can help you figure out how much you will need based on your child's current age.

Answer 3

Not nearly as much as I should, but I do have money invested in a roth IRA which can be used for childrens educational purposes. I plan on putting up $100/month for my 1 and a half year old daughter. I'll have it come right out of my check so that I can't miss it. My father struggled to save for my education and I got a partial scholarship. I didn't have to come out of my pockets for a dime, but being somewhat irresponsible I took out a low interest school loan anyway and I still can't tell you what I spent the money on, but I am making the low monthly payments and should be dept free in a couple years.

I don't want my daughter to have to struggle. Hopefully she decides to go to an in state school so I can afford to send her there!

Answer 4

For my 2 kids every week $40 goes into each of their accounts, and we do not touch the money. I will proably have to lessen the amount to $20 a week, but at least it's something. I think the key is starting when they are young. That way $20 doesn't seem like that much- I never see the money. Of course by the time my kids go to colloege who knows how much money you'll need. (my kids are 41/2 and 11 months)

Answer 5

Sadly, we don't have anything saved. Because of other issues in our family, we decided early on I would not work outside the home (until the past few months). We attempted to start a home business at one point, but that failed and we ended up in bankruptcy court. We simply are not in a financial position to put away money either for our daughter to attend college or for our son to go into assisted living (he has autism) when he is an adult. Things are starting to change, but the truth is we never could have, and never intended to, save enough to pay for our daughter's college education. I firmly believe that once a child begins college, it is time for them to take responsibility for the choices they make. In my family, because my parents paid for two of my brothers to attend college and both dropped out, causing my folks to loose nearly $10,000 in tuition, I had to do my first two years in a state school and live at home. My parents helped with my car insurance, living costs and books. I was expected to work and get scholorships or loans in my name to cover the rest. If, after two years, I chose to continue my education, my parents would then pay 1/2 of the tuition, as well as car insurance. Unfortunately, both of my parents passed away by the end of my second year of school, so I took my associates and went to work full time rather than continue. This is an arrangement I plan to use with my daughter as well. While I agree it is a parents job to raise and care for thier children, I strongly feel college students take thier eduation far more seriously if they are going to be responsible for the cost.

Answer 6

I have an 18 month old, but I have a savings acct that I haven't touch and I just opened it.. But when income tax time come, I plan to invest in some stocks and bonds like my parents did for me and my sister. And the bonds they bought were the ones that matured with interest. He ended up putting a big down payment on his new house, but he just pays out of his pocket for my tuition since he did it so damn backwards. But that's good though you're doing that. And I'm going to continue to build that seed, and god willing she'll get a scholarship and that will be money in the bank for her for whatever she needs.

Answer 7

My daughter is only 18 months old, so we haven't started an account yet. With that said, I used to work in student loans. If you are nervous about your child's education, remember that there are a variety of student loans that will be available to them. If you want to pay for there education, there are also Parent PLUS loans. Parent PLUS loans are loans that you would take out in your name and use to fund your child's education. I warn you though, Parent PLUS loans often have a higher interest rate and aren't as flexible as a stafford Student loan that your child could take out.....

Answer 8

My daughter IS in college and beleive me your $5,000.00 isn't going to amount to a hill of beans in another three years. Not only is there the cost of tuition but also the cost of books. I'm in college myself and my books actually cost MORE than my tuition. So I suggest you start saving A LOT more.

Answer 9

my daughter has 500$ so far we put anywhere from 50-100$ aside each month in an account w/ her name on it set up by the bank. she is 7 months old now. i can only imagine how much it would be in 18 years.

Answer 10

i am just now 18 and my mom and dad only had 8,000 saved for me so u are i good shape