[quote=AN][quote=flu]
WHAT? UC schools are $35k/year now including room and board? Holy freaking sheet. In 9 years, with a 4% increase per year, that’s $50k/year for UC schools. Ouch… Ok, so the difference isn’t as wide.
Little FLU: Ivy is back play. Now just get in. Looks like I need to put more money into the “ForMyKidNotMyPorsche” account.
Side note: anyone else thing over the next decade it’s realistic to find 4% returns consistently year after year?[/quote]Based on my calculation, current UC tuition is ~$13k and Harvard is $48k. In 9 years, at 4% increase, UC would be ~$18k and Harvard would be ~$68k. That’s a difference of $50k/year. So, after 4 years of undergrad, you’re talking about $200k. I don’t know about you, but that’s pretty big difference to me. Maybe it’s not as big of a deal if you have one kid. For me, I rather save that $200k and if he/she has the ability to get far beyond a BS and make that education investment worth it, then I can take that $200k and pay for their MD/Law/MBA. You can view it as undergraduate being a test. If you’re a MD, I don’t think people care if you got your pre-med at Harvard or at SDSU, as long as you got your MD at Harvard.[/quote]
This is what we plan on doing. The kids go to the local JC and state colleges while living at home. If they can prove themselves through their BS/BA degrees, then we can talk about the fancier colleges for advanced/professional degrees, assuming the ROI would work out.
If they don’t like it, they can get jobs and pay the difference between what we’re willing to pay and the cost of whatever it is they want to do. Fortunately, they “get it” and seem totally okay with our plan as we’ve been preaching about it since they were born. And if they want to get student loans, we’re going to drop our subsidy by the same amount in order to discourage them from taking on any student debt (we’ve been preaching about that, too).
