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Foggy College Costs

May 19th, 2009 at 01:34 pm

We have saved for college. Just not a lot at this point. Maybe $4K each. I'm sure it's a bit less now!

I even have college funding on hold for this year because of the home equity loan payoff. Of course, we probably shouldn't be doing a Disney vacation instead of funding college. But we are. Dave Ramsey would be soooo mad at me!

College saving is just a bit foggy to me. The costs are increasing so fast. How do I keep up? How do I know they will go to college or even where? We'll be moving a couple times before college starts for our oldest. Should I save a set percentage? Do I come up with a dollar figure to shoot for and hopefully exceed?

Retirement saving seems easier. Save as much as you can or pick a percentage. When you get to retirement...spend less than you have. Isn't the recommended amount to spend about 4% of your accumulated balance?

Of couse, my kids do well in school, so I think some scholarships will be available. I'm not opposed to them having jobs. I'm also willing to use cash available at the time to pay to assist them.

And now, with the market the way it is...do I even save in the stock market? My oldest only has 6 more years of schooling before college.

Hmm...as I write this I realize that because college is closer than retirement, I'm feeling the inadequacy of my planning and saving. I hope I don't get this feeling in retirment.

Next years plan WILL include college. I just need to decide if the amount we were saving last year is enough and where it should go. Wish me luck!

2 Responses to “Foggy College Costs”

  1. momcents Says:
    1242746140


    Are we in the same boat?! We discontinued college savings to tackle the debt; sadly, that is now after the $6,200 surprise of the roof. I am glad that I can pay cash for it, but am getting antsy to plan for college as well. My oldest is 7 years away. We've got about $20K total, but that is for everyone (5 thus far).

  2. north georgia gal Says:
    1242748440

    In the last couple of months, I have read on more than one occasion that you should save for retirement. There are many benefits, including that if the money is in a retirement fund, it doesn't affect any financial aid received in more cases. And if you save it in a roth, you can take it out to pay for college. I can't remember word for word, but it seems smarter to save for retirement and then access if necessary, like you said, they might not even go to college.

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