[Laura]

As a parent of a young family, are you actively budgeting for future college expenses?

If so, what strategies and tools are you using to ensure you’re prepared?

Are there specific savings plans or investment vehicles you find particularly effective?

Additionally, how do you balance this goal with other financial priorities, such as retirement savings or emergency funds?

Any insights or experiences would be greatly appreciated!

[Julie]

We have 4 kids, we started 529s for the older two kids when they were babies.

Our plan isn’t to pay for 100% of their college, although if they go to a community college and then transferred to a state school OR go to a state school for all four years, but live at home- a good portion would be covered by the 529.

So, they have options if they don’t want debt, but if they want a private school, they need to work on scholarships, work, and maybe take on some debt.

[David]

Emptied their 529 account and purchased a rental with it. When they are ready for collage, they will have an almost fully paid off house with passive income.

[Kathy]

Put all holiday money in 529 when young and grandpa always added occasionally.

My husband and I both put $50 a pay check and had 100k

[Wendy]

Yes. We have a smaller 529 but plan to use a combo of lots of dual enrollment during high school, choosing a school that gives automatic merit and lowering our expenses through geoarbitrage to cash flow.

We’re already nomadic and homeschool so that helps.

[Abiola]

No 529.
We invested in real estate.
Our first will be a college freshman this year and we’re good.

[Hunter]

It’s the best planning and gift I could imagine.
I have one in college and a HS senior.

529, a bit over $100k each.

Only put in around $40k, the magic of compounding interest.

It is so nice to be able to cover four years with no thoughts.

Those who think college is a waste can go their own way.

[Howie]

Scholarships Only.
Living in Florida, Bright Future Scholarships are available if your kids can do well on the SAT/ACT.

2 down, one kid to go.

All my money goes into retirement accounts.

[Cassandra]

Saving some in 529s. Plan on reducing expenses further (paying off house) and being retired by the time kids are in school so we can sustain a lower income.

This will make us eligible for federal aid (depends heavily on income, less on assets, doesn’t include at traditional IRAs) as well as state free tuition programs if under a certain income level.

[Lauren]

Nope, my parents didn’t for me and I don’t plan to for my children. All four of us kids made out just fine without it, we worked, got scholarships, chose more affordable options.

I knew loads of kids who were on the mom/dad scholarship who just partied away and wasted that opportunity and money.

I strongly believe in teaching my children the value of something by having to work for it.

Many college prices/loans are highway robbery and learning about that and finding alternatives is also a valuable life lesson.

Oh, I guess I should add, once they start earning money, every dollar my kids save for college, I will match 100%.

I am willing to put in the effort that they are.

My parents also did this for us.

[Jeffrey]

We’ve been putting money in a 529 plan for years. The tax advantages make it a no brainer way to save for college.

If you have grandparents that want to contribute, it’s easy for them to make contributions to it as well.

My mother in law splits her contribution yearly amongst all the grandkids at tax time.

[Corey]

Minority opinion… I’m investing in passive income instead, mainly real estate.

[Perry]

We did an UTMA when my son was born, not likely that college will be as important 10 years from now so he can use the money to start his life or pursue higher education.

I won’t be paying for his colllege though.

[Rosemary]

Yes, we’re putting enough money in 529’s to pay for tuition at an in-state school.

It can be used for other education or other family members if our kids don’t use it.

Great investment in my book!

[Sarah]

My husband and I both work for universities so they will be able to go to school tuition free.

We saved other money for them and they can either use that to live on campus, for books, or live at home and roll it into an ira when they’re done.

[Jessica]

We started 529s for each kid when they were born. They are now 19, 18 and 16 and I can’t tell you how thankful I am that we did it.

Money was TIGHT when they were little since we were on 1 income, but we committed to $50 a month per kid, then when I went back to work we increased it to $100, then $150 and finally $200.

It’s enough per kid to cover in state tuition for 4 years (room and board is not included).

I’d say just set it and forget it and increase as you can.

[Joel]

I have been putting $166 a month into a custodial account invested in an sp500 index since my daughter was born 5 years ago.

Didnt go 529 to allow more flexibility in how she spends it in case she wanted to start a business, buy a house, ect….

[Danielle]

We have a 529 for each kid and when they moved from daycare to public school, we put the daycare weekly expense into their 529 instead.

We’ll probably do that for 4yrs for each kid, then let it grow.

[Denise]

Not now. Putting as much into retirement investing as possible. Once I’m sure I have enough, I’ll help where I can.

[Thai]

Yep 529 since they were born, superfund early so you wouldn’t have to invest as much principal.

[Justin]

No I’m not. I’m prioritizing my future needs. Once my goals are met, I can throw my kids a couple of bucks from time to time.

[David]

UTMA, personally. Didn’t want to deal with limitations of a 529 if they weren’t interested in further education

[JJ]

I have two young kids. I was born and educated in the US (outside of grad school, which I did in Singapore and switzerland).

My bachelors in the US cost ~150 USD.

I’m raising my kids in Switzerland, where university is 500 USD a semester.

So I’m putting away a little money to help with living costs while they study (if they chose).

They also have EU passports which means they can access European institutions outside of switzerland as well.

To say this all is a relief is an understatement.

I wish the US would stop bombing countries abroad and start putting resources to educating its next generations.

[Author]

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