Yesterday I spent the afternoon doing some financial planning. I am in deep waters, since I don't really know exactly what I'm doing.
I love reading blogs, it is my favorite way to relax after the kids go to bed! So I have been reading-
www.simpledollar.com
www.simplemom.net
I have been considering our financial status more here, because when we live here there is a little to save! When we live in California, there isn't much to it! In California, our goals are- make it to the end of the month without spending more than we make (which is a challenge) and tithe first.
Both blog authors have quoted Dave Ramsey. His plan includes a list of baby steps of paying off debt and savings.
So I've been considering ideas like emergency fund, retirement savings, college savings, paying off the mortgage early. Obviously, I can't do all these things at once.
It has been interesting to consider how long it would take us to save an emergency fund to cover our expenses for six months. I think this is a great idea and would relieve stress and pay for true "emergencies" like medical bills, major unexpected repairs, layoff, possible deportation! A renter destroying our home. :) I think we'll work on that-- for a LONG time!
Then there are college savings.... can I just say "AHHHHHHH!" We've had a 529 since Weston was born. We have faithfully put $50 a month in for the last 5 years! Ha ha ha... I wish that could come close to the total we need!!!
College for our two children at JC and a state school for 4 years each adds up to $180,000. This number is probably underestimated as well! (there will be a 105% inflation in cost by then!) So even assuming that they work and get scholarships to cover 50% of that number and we save $90,0000 for them, that would be $441 per month for the next 17 years. WOW WOW WOW!
However, if we just wait and don't save- we'd have to pay $1270 every month for Wes. Then two of them would be in school at the same time for 2 years that would be $2540 a month for two years... so saving something is probably better than saving nothing, right?
Can I just take this moment to thank you mom and dad? You sacrificed so much to give Peter and I our educations! We really appreciate it! You are such great parents and we are thankful for you everyday!
OK, well now you know the deep waters my mind has been in for the last 12 hours... I am trying to figure out a plan.
My goal, though, isn't to pay for everything for the next 50 years perfectly, which is impossible! It is to be wise with the money we do have now, while trusting God for the rest and trusting His direction.
"In his heart the man plans his course, but the Lord determines his steps." Pr 16:9
What do you think? Are college savings really that important? Should a parent be responsible for their childrens' education costs?
2 comments:
I don't think we are responsible for college but I think it's a decision that parents make by what they think is important for their children. Plus, some kids are not college bound and wisdom is needed from the Lord as to how best direct that child. For Dad and I it was so important to help pay for your college and to have the college experience. Christian college was at the top of the list for you and Shauna. So saving as best as you can and then trust the Lord's provision for the rest. Faithful, consistent savings will add up as the years go by.
With that said, it's you and Peter's decision what is important for Weston and Sierra. I know you both will make wise godly decisions for my precious grandchildren.
Love you so much! Mom
I think about this often. There is too much to save for and not enough money. I never know which should be the priority: college, to-buy-a-house fund, emergency fund, retirement, etc.
It overwhelms me. I feel like I have to decide between owning a home that my children can grow up in or funneling that money into college funds.
But then I think that John didn't have anyone pay for his school--and it is okay...we both have school loans and it is okay.
So I'm torn....
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