Saving for college

[JWIL4CY]

So I have 2 sons ages 19 months and almost 2 months. I have started 529 accounts for both of them, and am trying to figure out how much to save each month. I'd like to have enough for each of them to be able to go to an in-state school (hopefully ISU of course) for 4 years all expenses paid.

Most of what I've seen online says I should have about $250k saved for each kid. Is it just me or is that way too much? I know tuition is always increasing but that just seems crazy. I was thinking $100k might be more accurate but I don't really know.

Any other parents have advice on how much you're trying to save for kids?

 

[2020cy]

Make them take out some loans and have some fun your ownself.

 

[VeloClone]

I'm sure they could go to Judge Smails for some help...

[video=youtube;eiRGRvE_Wqg]http://www.youtube.com/watch?v=eiRGRvE_Wqg[/video]

 

[ISUAgronomist]

Say the cost goes up by 8%/year for the next 18 years.

That will take this year's current tuition x4. So, $8000*4*4years = $128,000

(Just throwing out a random number really. Tuition and fees at ISU...no room & board.)

 

[azepp]

It depends what your goal is. Do you want to pay 100% of tuition, room, and board? Then the $250k doesn't seem so far fetched (especially for an out-of-state school).

 

[ianoconnor]

I agree that $100k is more accurate for an in-state school.

 

[JWIL4CY]

It depends what your goal is. Do you want to pay 100% of tuition, room, and board? Then the $250k doesn't seem so far fetched (especially for an out-of-state school).

Well my goal is to do 100% tuition/room/board for an in-state school for 4 years. Considering my wife would like 4 kids that would mean I'd have to save about a million. Yeah that ain't happening.

 

[ianoconnor]

Financial Aid - Cost of Attendance | Iowa State University

 

[Althetuna]

Well my goal is to do 100% tuition/room/board for an in-state school for 4 years. Considering my wife would like 4 kids that would mean I'd have to save about a million. Yeah that ain't happening.

I just sent my first off to college this fall. I started saving 10+ years ago and used the online calculator @ Iowa College Savings (Iowa's 529) and it was pretty accurate.


The $250,000 figure doesn't suprise me if you are looking to pay 100% tuition and R&B.

 

[2020cy]

Well my goal is to do 100% tuition/room/board for an in-state school for 4 years. Considering my wife would like 4 kids that would mean I'd have to save about a million. Yeah that ain't happening.

Start teaching them to golf if they are girls or throw left handed junk if they are boys.

 

[CycloneGB]

Step 1: Use the money to pay Jake Knott to impregnate your wife
Step 2: Kids get full rides and ISU gets more stud linebackers
Step 3: ???????
Step 4: PROFIT!!!

 

[ianoconnor]

How do you get $250k for 4 years of Tuition + R&B??

Even if it increases $400 a year for the next 18 years from current cost, it'd be $25,720/year.

 

[JWIL4CY]

Step 1: Use the money to pay Jake Knott to impregnate your wife
Step 2: Kids get full rides and ISU gets more stud linebackers
Step 3: ???????
Step 4: PROFIT!!!

Well my oldest son is off the charts on height and weight and his doctor thinks he'll be about 6'7". So I guess him getting a scholarship wouldn't be out of the question.

 

[Tailg8er]

I was lucky to get some munchies sent back to school with me from my parents.

$250K would have made college life (& post-college life) MUCH more enjoyable. Just make sure they know how nice they have it when they get older.

 

[JWIL4CY]

How do you get $250k for 4 years of Tuition + R&B??

Even if it increases $400 a year for the next 18 years from current cost, it'd be $25,720/year.

Here's the site I was looking at:

Iowa State University - Tuition, Cost, Student Loans and Savings Plan

look under estimated future cost. That is just one site but I found a few others that all said about the same thing.

 

[JWIL4CY]

I was lucky to get some munchies sent back to school with me from my parents.

$250K would have made college life (& post-college life) MUCH more enjoyable. Just make sure they know how nice they have it when they get older.

My parents gave me a full ride to ISU which I am very thankful for. That is why I'd like to return the favor to my kids.

 

[Stewo]

Make them join the military. You win.

 

[ianoconnor]

Wow, that is insane.

 

[azepp]

How do you get $250k for 4 years of Tuition + R&B??

Even if it increases $400 a year for the next 18 years from current cost, it'd be $25,720/year.

$400 increase is less than 2.5% inflation this year (and even lower % as the cost grows, which is why you can't do it that way).

Tuition + books + room & board @ ISU is $16,490 per the earlier link for the 2012-13 school year.

4% inflation (conservative, given recent trends) puts the cost for the older child at ~130k. 6.5% for the same child puts it closer to $200k. It's all about which assumptions you use.

 

[kcclones]

I children under 1 year and was told to plan on at least 200k. i don't recall the % increase that was assumed, but over the past 30 years the increase has always been on par with the assumption