Saving for Baby's College.....whimper.

jessonadventure

So my father is a Financial Planner, and I asked him for help figuring out how much we'll need to put away every month for baby boy to go to college when the time comes. I figure it's better to start saving a little now than to come up with giant lump sums years down the line. He ran the numbers and got back to me today, and now I want to cry. Here's what he said,

"Current cost is about $19,000 / year.  By the time he enrolls and graduates, it will cost a total of $245,424.  An investment account, started now and funded until he starts college would take a systematic investment of $530 / month.  If the plan was to pay for just tuition and not room and board, it would take about 50% of that."

Whimper. Maybe if we stopped eating and making the car payment we could save that much for college every month. But obviously that's not going to happen. We were hoping for a number much more in the $100-150 range.

So ladies, what's your plan? How much, if any, are you planning to start saving every month? Please help me feel like I'm normal for not dedicating that much per month! 

miss2697

Um yea, not even close. We might start putting away when the kid is five if America turns around...

jegoffin

I'm saving all Christmas and birthday money. That's all I've committed at this point. I had to pay my own way through college and I don't plan to completely find my child's education either. To me, it's more important to prepare for our own futures and ma

bakerlm

We put a little away when we can, but honestly, I had loans and the kids will probably need them as well.  It is better for us to build financial security now (and have money for what we need as a family) over college that ds might not even need (

ilovemyducks21

Our current plan is to do the $100-200 range, depending on what we can manage. I know full well that it won't cover the entire cost should our kid decide to go to school out of state (or even probably at some in-state schools). If at some point we can

stephyfaith

Oh wow that is super overwhelming... I'd say just save whatever you can and hope your kid is super smart or into sports for scholarships??? My parents couldn't afford to put any of us through school and we had to take out loans and scholarships. I do not

Avalyn

Is that calculation just assuming you are only dumping money into a Savings account with a flat interest rate?

Consider investing that money in stocks instead, in order to take advantage of compound interest. This should allow your money to grow

PrimRoseMama

You do what you can. Please remember that community colleges are now becoming a more viable path to getting very well paying jobs. You aren't horrible if you can't pay for your kids' college all the way through. I paid for my way through college and it

luvmyducks

We started a 529 account for DD when she was born.  Anytime someone gives us money for her, we put it into her account and we match it.  Then once a year when we get our taxes back, we put in $1000.  So in her first year we pretty much c

pantsarella

Our state has a prepaid college trust, where you can save based on this year's college tuition rates and when you take out the money, what they give you is based on the tuition rate at that point in time. You can save for a semester, a year, 2 years, 4

KdgTeacher

So can a 529 be set up before baby comes?ETA--and can you put money in before baby comes?

aehamilton13

No plans here yet. My grandparents started a college savings fund for me when I was small, which was a huge help, and I think my Mum will likely do the same for this little one. Not that I'm planning on it, just that based on some things she has said, I t

Lelo2006

I think we are going to put 5k in a 529 to begin with and then an extra 500 dollars a month for the next 22 years.

jessonadventure

Thanks for the thoughts and ideas, everyone. They were very helpful and reassuring.

My folks paid for my college tuition, but I got a job the day I turned 16, got scholarships and worked all through college to pay room & board. So I fully ag

Xles10

We have a 529 for DS. So far we've just funded it annually versus monthly. The lump sum averages to about $500 a month. I don't know if we'll always be able to manage that amount, but I figure we should do it while we can. 

bobcee

pantsarella:

Our state has a prepaid college trust, where you can save based on this year's college tuition rates and when