Well he is in preschool/kindergarten.
That's actually great news. Why? Because it means you have time to plan.
I was in the Navy for 20-years and in the mid-90’s we returned to the States after being stationed overseas for a number of years. Our kids were 4 and 5 respectively. After we returned to the states my wife and I did some preplanning for the kids. We took a few thousand dollars and invested in a pre-paid college tuition program which provided certain tax advantages. We could afford to make payments for 2-years at a University for each of them, we started with some seed money from US Savings Bonds and then proceeded to make payments for the next 13-years. But after that each of them had a start.
At the appropriate time we sat down with them and discussed finances and college and laid out the reality of the situation. Our son took his and decided to attend a good local University, our daughter decided she wanted to go off to school. Our son decided to use his account to attend a local community college with an agreement to then move to the university as a Junior. The cost savings due to going to a community college extended the amount of time that his account would pay for. He stretched the 2-year university program out to 2-years at a community college and 1-year at a university. Our daughter used her’s for the first year, but then earned a full ride ROTC scholarship based on academic excellence in a science/technical program.
(BTW – Both our kids work part time and help defray some of their own expenses. That was one of the things we made very clear when we had the financial discussion. College would not be a free ride, and even though our daughter has a full ride scholarship she still works to help pay her rent and living expenses.)
Most states have a one or both of the two main types of college savings programs: pre-paid and college savings. Under a pre-paid program you purchase a set number of semesters at a state public school at todays tuition rate and then are guaranteed that number of semesters in the future no matter what tuition costs. In the College Savings Program money is set aside on a tax differed basis for use in paying for education later.
By starting young, you can save smaller amounts which add up over time due to the power of compound interest.
Here is a link to the Virginia programs, your states may be different -->>
Virginia 529 - Virginia College Savings Plan | Affordable, Flexible Tax-Advantaged College Savings
currently I am just wondering for what the cost of an average year of college
For the top grade colleges/universities like Princeton
For the middle grade colleges/universities
And For the poor grade colleges/universities
The below costs are from the schools and include room and board.
Top Tier:
Princeton $52,165 per year (
Princeton University | Fees & Payment Options)
MIT about $40,000 per year (
MIT Facts 2012: Tuition and Financial Aid)
Cornell $40,985 (In State)/$57,125 (Out of State) (
http://www.finaid.cornell.edu/cost-attend)
2nd Tier (Good State Schools)
University of Virginia $24,344 (In State)/$50,000 (Out of state)
U.Va. Financial Aid - Estimated Cost of Attendance
Which is pretty standard for Virginia Public Universities
Our Son attends a local State University and lives at home, this saves a boat-load of cash in terms of making college affordable. His costs are about $9,000 per year which includes tuition, books, and fees; but since he lives at home there are no costs for rent (but ya we still feed him.)
Also curious on if I don't up to home school him. How much does high-school cost typically for year. Or in total an approximation on how much it would cost to put him thru middle school , or high school.
Can’t really say. Theoretically public schools are free, but there are usually some fees that nicle and dime you even for public schools. A couple of hundred per year (not including supplies)?
I have no idea how much it costs to homeschool. Depends a lot on how you go about it.
Private schools can be expensive if you are considering that. The downside is that the expense that goes into private schools means that money is not available to invest in a college savings. The good side can be a quality primary and secondary education, the downside is it can them make college even harder to pay for (all depending on how much your earn of course).
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What sucks (paron my French) is the whole financial aid structure. If your family is poor, there is a boat load of financial aid. If you are rich you don’t need it. But if you are a working family you probably make to much for much “free” money and if you actually do save for college then that counts against you for aid purposes.
The whole financial aid process and another one of those things that will take some research so you can develop a long term financial plan so that you can shift from preparing for college to financing for college with ease.
The worst thing to do is blow it off until your son is in high school or (gasp) getting ready to apply for college. That’s when it can really crush you.
Pretty much plan on if your family income is middle-class that “financial aid” will consist of loans to be paid back. We’ve been very blessed. With our son’s decision on stretching school and living at home and our daughters scholarship (but having living expenses away from home) and both working part time – our Son will graduate debt free and our daughter will graduate with under $10,000 of loans. Which is really great considering that some of these kids are graduating with $40,000, $60,000, $80,000 of debt.
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