osu fan wrote:
I got about $40k from inheritance recently. I'd taken out a zero interest loan (for 18 months) previously and set aside that money to pay it off when i have to. I put the other $20k aside in savings for my kid's college fund, who is about 18 months old.
what should i do with it? If people here say they're getting $40k from their parents to pay for school, what can I do to make sure that my kid doesn't have to pay a dime? I'm hoping for public, in-state tuition 18 years from now. That, or an awesome athlete.
osu fan,
I have no issue with people who want to save for college for their kids, but let me give you another perspective. We opted not to save a penny for our kids for college. Many colleges (especially the BEST ones) will give you lots of money based on need. If you have $100,000 saved in a college savings account, guess what...they will get every penny of that (assuming their published cost for 4 years equals at least that much), but if you have ZERO in savings for college and you don't make a truckload of money, you will just be awarded a grant from the college to cover the shortfall. 62 colleges in this country meet "full financial need". See here -
http://www.usnews.com/education/best-colleges/paying-for-college/articles/2014/09/15/colleges-and-universities-that-claim-to-meet-full-financial-needYes you will still pay some money, but not nearly as much as the $100,000 or more that people save for college over the lifetime of a kid up to age 18.
Then, there are LOTS of colleges in this country that will give full tuition or even full ride just by meeting some very reachable academic achievement goals. Got a 28 or up on the ACT? Well, you can start shopping for a deal somewhere. In-state schools aren't that expensive and can be taken care of with income if you make sure you are debt free once your kid begins college (no more student loans for you or your wife, no car loans, and only a reasonable mortgage).
Some read that and think, "yeah, but I want my kid to go to an Ivy League school, and those are EXPENSIVE." Well, first of all, it is tough to get accepted to an Ivy League school, but secondly, they are among the most generous with financial aid. If you currently make less than $120,000 and don't have big assets or savings, you will pay about one tenth their published cost. If you make a TON of money, then you will pay full price and perhaps saving for college is a good idea. For MOST people though (those who make less than $120,000 or so family income), saving for college isn't necessarily the best idea.