r2i forum

I would like to hear from members who are in USA and have kids who completed their graduation from universities in US.

How stressful (or not) has it been for you financially? I live in NJ and now have 2 kids going to day care. Between mortgage and day care, I am spending a fortune. I guess life will be better financially once they start going to school. But I have to start thinking about 160-200K tuition fees per child during undergrad. 160-200K is the number I have been hearing from some of my american and desi acquaintances.
Also the insurance costs keep getting higher and higher. All this is adding to my stress “Am I ready financially” . My R2I and R2A put a dent in my pocket because of which I might be an exception in not having significant savings but I would like to know from other members as to how is financial life from the stage you have kids to the point they go to college (and even after that).
Is it really stressful to keep up financially for desi community or am I in the minority by not planning well?

Please shed some light
- R2IKyon

I put three kids through college and medical school in USA with zero debt. The college and medical school for each kid was about $350 K - $400 K per kid. I am quite sure that I will have to keep working for another 25 years to ecover from the financial stress. Until they start college the costs are manageable. Once they start college, you will be worried all the time about your financial situation, but unfortunately, we still have this obligation to put them through college.

TraderJoe1976;586902I put three kids through college and medical school in USA with zero debt. The college and medical school for each kid was about $350 K - $400 K per kid. I am quite sure that I will have to keep working for another 25 years to ecover from the financial stress. Until they start college the costs are manageable. Once they start college, you will be worried all the time about your financial situation, but unfortunately, we still have this obligation to put them through college.

$350K -$500K , god!!! thats a lot, with 3% increase yoy in 14 years that would be $500K -$800K, Now I am really stressed out!!

virgo_mc;586904$350K -$500K , god!!! thats a lot, with 3% increase yoy in 14 years that would be $500K -$800K, Now I am really stressed out!!

oh wow..the numbers are crazy..I doubt I will be debt free financing such tuition..
When I was in India during R2I (I didnt have kids at that point) I used to feel that I will have to make loads of money looking at house prices and the cost of living.
I thought I wont be in such a state in US but unfortunately reasons changed (education costs, insurance, etc) but the stress remains :(

r2ikyon;586905oh wow..the numbers are crazy..I doubt I will be debt free financing such tuition..
When I was in India during R2I (I didnt have kids at that point) I used to feel that I will have to make loads of money looking at house prices and the cost of living.
I thought I wont be in such a state in US but unfortunately reasons changed (education costs, insurance, etc) but the stress remains :(

Another new s item to give more stress
http://www.theatlantic.com/business/archive/2014/12/millennials-arent-saving-money-because-theyre-not-making-money/383338/

Apparently [QUOTE]Since the Great Recession struck in 2007, the median wage for people between the ages of 25 and 34, adjusted for inflation, has fallen in every major industry except for health care.
[QUOTE]But it's easier to see why young Americans aren't saving any more than we used to: Their wages are falling behind the cost of basic goods and many are going into debt to pay for a college degree.

So even after paying that much dollars kids might not be earning enough.

virgo_mc;586907


So even after paying that much dollars kids might not be earning enough.

In a birthday gathering few weeks back, one of the desis who studied in Canada was suggesting that I should like to have my kids go to college in Canada. He says it is not expensive and the quality of education is good

current sticker price for one of the top 20 private colleges is $60-$65K (tuition plus room and board and books). The tuition is going up every year around 3-5%. Most two income households (with only one or two kids) will only get loans and work study programs disguised as aid. In contrast most state colleges are only half this amount and can easily be afforded. But we Desis often fall prey to peer pressure and want to put the kid in one of the top 20 schools. The sticker shock comes after the kid joins school. There seems to be no end to this madness. As long as easy money is chasing the few colleges (mixed in with demand from international kids, mostly from china) the tuition will keep climbing. Those that R2Id are in the best place to take advantage of both worlds. Study undergraduate in India in one of the top schools and then come to USA for graduate study on full Teaching / Research aid.

r2ikyon;586901
How stressful (or not) has it been for you financially? I live in NJ and now have 2 kids going to day care. Between mortgage and day care, I am spending a fortune.

Just consider the situation of normal IT folks(non IPO guys) in bay area, you will observe your stress level came down couple of notches.

TraderJoe1976;586902I put three kids through college and medical school in USA with zero debt. The college and medical school for each kid was about $350 K - $400 K per kid.

This is not the typical cost of 4 years of college. This is the cost of undergrad + 4 years of medical school+Living expenses for those 8 years. And these kids would start their career @ 200k+.

So would you not invest 2 years of income for a earning potential of few million?

around $1 million for education of kids. Your kids are lucky.

I am afraid most people can barely afford to send their kids to public schools. I guess that begs the question, say somebody wants to do Computer science under grad, will a degree from top 20 make that much of a difference? As per my knowledge if the kid is really good, his opportunities will be similar to any other school grad?

TraderJoe1976;586902I put three kids through college and medical school in USA with zero debt. The college and medical school for each kid was about $350 K - $400 K per kid. I am quite sure that I will have to keep working for another 25 years to ecover from the financial stress. Until they start college the costs are manageable. Once they start college, you will be worried all the time about your financial situation, but unfortunately, we still have this obligation to put them through college.