I thought this article was interesting and thought I would share.?
This is so true--My MIL helped pay for college for her 3 kids, and bought them all cars in high school. She did not save for retirement at all and now it's killing all of us, because her kids and grandchildren have to foot the bill for her living expenses.
Maykat, this is the same story as my DH's family. They spent their entire life savings for their 3 sons to get a US education (all at private schools - MIT & Rochester) and now they're completely destitute. It sucks having to support them financially. We can't afford it and they (well, before FIL passed) feel so badly for being a burden. And the lack of college money is what is really keeping DH from wanting a third child which I've always thought was ridiculous. I know that if kids want to go to college, they'll get there and as long as the parents are there for support and guidance, even if they have no monetary contributions, they'll find a way.
Can you tell we're not saving for college??
Neither my DH or I had our colleges paid for. My mom is still unable to pay for all her expenses and we support her monthly now (it's not a lot yet, but we are worried about that). We both have student loans and worked and I don't think there is anything wrong with that. We are still setting aside money for Danielle/baby #2 future...we have not done a 529 beacuse we aren't sure exactly what it will go to, piano prodigy lesson (just kidding), car, college, wedding, just stuff she may need if we get in a bind. We are thinking of also opening up a 529 specifically for college, but it's not our intention to foot the bill entirely. We have to worry more about our retirement, so I totally agree with this article!
Dh is very firm about not saving for college unless all our retirement funds are being fully funded. Dh went through UGA on HOPE and worked to help pay for his living expenses. We don't want to be a burden on our kids later in life but if we do have extra money we'll help them out but not fully fund their college.
My IL's have a college fund set up for all 3 grandkids. I've joked about it before but really I'm not kidding, I'd rather spend that money on private school tuition now than Emma end up a freaking Elementary School drop out and never make it to college anyway! Somedays that really feel like the direction we're headed.
We are putting our retirement first right now. ? Its scary watching our 401k accounts taking such a hit right now, but they should be recovered in 35 years. ?You would think anyhow.?
Nico's parents have started an account for Evie in Austria for her education. ? And we keep talking about starting one for her, but I STILL haven't gotten her SS Card. ?So I can't even open a bank account for her. ? Bad mommy!?
We do plan on helping our kids pay for college, but I'm not sure that I'm going to communicate that to them right away. I don't want them to take it for granted.
Also, if DH or I lost our job and couldn't contribute to our retirement, the contribution to the college fund would be the first thing to go.
We have a fund set up for Alec that was created by my parents in our names. They don't want Alec knowing about it until he starts college and there will be stipulations tied to it. The same will be done for Aerin. We put all $$ that Alec receives as a gift right into the fund too.
DH and I both had our private college education paid for by our parents. I cannot thank them enough! We never took it for granted. I can't imaging trying to get by with undergrad student debt ?on top of everything else. We will certainly be saving for DD's college.
That being said, we'll highly encourage her to choose a state university. By the time she graduates college, a B.S. won't be thought of as anything more than a H.S diploma is nowadays. There's no point in spending more for a private school name, when a state school will get her the same piece of paper. She'll need the extra money for med school, law school, or a PhD program.....lol. ?We don't want her supporting us into our old age either.
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