I am in this for the long haul. I had to reduce my contribution earlier this year due to some financial issues, but raised it back to 5%. I was affraid that the extra 3% would really take a bite out of my paycheck. It didnt… barely at all. I look forward to getting my contributions back up to 10% here in the next 6 months. If you do it little by little, one percent at a time, it doesnt hurt nearly as bad.

For me, it’s easier to put save if I dont see it. I would like to do a Roth; however, I tend to find other things to use the money for if I have it in my bank account.

To each their own.

I simply cannot believe that one school for a 2 year old would be so much better than another that it would justify such a blow to your financial situation, let alone the tuition payment. I didn’t even start preschool until I was almost 4, and I think I turned out all right.

The very best sacrifice you can make for your son’s education is not sending him to a fancy private school, but providing a supportive environment for him in the home. Read to him and talk about what you’ve read. Have stimulating toys and games (not necessarily expensive ones) for him to play with. Take him to age-appropriate museum exhibits. When he’s older, make sure he has a time and a place to do his homework and study for tests. Talk to him about his ambitions, and help him discover what he needs to do to get on the road to achieving them.

The reason why private schools, charter schools, and magnet schools have records that are so much better than run-of-the-mill public schools is not necessarily that the teaching is so much better, but that they are full of students whose parents care about their educations. Students at public schools whose parents care about their educations also do well (as long as the schools are not downright bad, which some are, but most aren’t).

I am guessing that transportation can be viewed as a cost of education. Perhaps Grandma could provide a school transportation stipend for your daughter as well, since it is clear that you cannot afford the cost of it.

Of course, there are other options like switching to a close school, as well.

DITTO what Stacey wrote! Chances are good that there are options for your child that would be equally positive with lesser cost to your security.

Thank you for this amazing topic, Trent

Finally I realized that we were scraping by on what we were paying and so I decided to have my raise that year put into the 457. I knew I could change that figure if necessary. Well, bless my soul, I went in one year to tell them to put my raise in. They told me I couldn’t. I could only put $11 a month in this year. Why? Apparently I was now at their limit of 25% of my gross income. I was flabbergasted. I had never been able to save that much.

In that 17 years for the state & my other jobs, I paid the expenses at home & in town where I had to live close to work-with my husband’s help, paid off the entire cc debt, and had put $50K of my own money in my retirement. I was over the moon. Reiterate to people how easy it is to save, especially when it is taken out before you get it. I only have about 1/15th of what people say I should have, but with SS & 2 small retirements, I need only take out the minimum each year. I can use it to fix up my home or save it.

The other smart move we made at retirement was to take a small cut and insure that the retirements would go 100% to surviving spouse. When my husband died in 9/07, my retirement went back up to normal and I am receiving his.

I did not ever expect to get any retirement because of the health and life insurance premiums and taxes. (My husband had cancer for 8 years and that insurance was essential.) However, my first retirement amount showed me getting $109. Since I had not planned on that, I put $100 automatically into Emigrant-Direct. When husband died, my insurance went down $200. That also went straight to E-D.

I am still saving because I know that, even though I am doing satisfactorily now, higher costs will come and I will need the savings. For not being a saver in my lifetime, I am holding a good emergency fund, a fair amount of 457, own my home and have the ability to live normally.

Please keep repeating the idea of saving automatically. It really works. I can testify to that. Just wish I had known of you earlier, but I doubt this blog was around then. I started saving in 1987.

While I know your heart is in the right place, you need to consider your son’s future as it relates to your own.

If he gets a GREAT education and a fantastic job, but also has to support you because you were unable to save for retirement or get out of debt, how is he better off? I know you don’t want him to struggle to make ends meet, but be careful that you don’t become a burden yourself. Besides, will a top-quality education necessarily lead to success? Sometimes, but not always.

Have a talk with your mother. If she is willing to pay $10,000 per year regardless of what school he attends, maybe you could find a high-quality private school close to home. Have you also looked into other public or cyber schools? I come from a small town, but we have several options available to us – and if your public school doesn’t meet state guidelines, you may be able to transfer to another district.

Maybe if you could find a less expensive school, your mom could stash some money away for college. $10,000 seems to be a lot for primary school…

Good luck! Best wishes in the new year. :)

I personally have a Roth IRA and I prefer it, because of the idea that withdrawals will never be taxed (assuming the gov. doesn’t renege). However, readers should know that they can also open a Traditional IRA with Vanguard, which functions in the same way as a 401K–is that correct?

I hadn’t, though, been saving for my children’s college. I decided to start with automatic deductions from my checking account into a Vanguard 529. I thought it would be painful, but once it’s deducted automatically I just don’t count on that money any more.

I suggest starting with at least $5 or $10 then keep uppping it when you notice that it’s less painful than you thought.

I think you may be over-emphasizing your child’s education as odd as that may sound. There are plenty of examples of children excelling in average academic environments. As someone who is married to an educator, there is no proof that an elite education at the pre-school/grammar/high school level guarantees any special success for a given child.

What you can do is create a good learning environment at home and be involved in your child’s education every step of the way. Do what you can for your child’s education, but I would certainly advise that you do not get in debt over Montessori school.

Good luck.

Best,
http://www.scordo.com/blog/blog – a practical living blog

What gets me smiling the most about posts like this one is that while most of the readers here are people in their 30s, 40s and up, younger folk like myself have a serious “ball in our court” by taking financial action toward our retirements now…much more than ever.