Ryan is big on higher education. He wants to begin a college savings plan for his two-year-old triplets. Lauren believes the early years are more important. She wants to use that money for a private pre-school and kindergarten. They don’t have enough left over to do both. Ryan thinks Lauren should get a job when the triplets hit pre-school, and pay for it that way. Lauren thinks motherhood is a full-time job and thinks Ryan should work overtime. They both confide in you. Is there a way out of this dilemma?
EDIT: Remember that savings for short-term (less than 5 years) and investing is long-term (more than 5 years)
I, personally, would hold the kids back a year (I know many people who do this) until enough money is saved for preschool and/or kintergarten. I would invest more so in the payment that is needed asap. I would invest 75% for preschool/kintergarten and 25% into college savings until the triplet's early years are paid for. I do agree with Ryan, Lauren should get a job once her triplet's start doing school, you'll need to invest in both the present semester and college semester.
ReplyDeleteInvest in what for preschool/pre-k? Remember, the triplets are two and preschool usually starts at three.
DeleteStart investing for what they need in the moment and then once they have what they need for preschool and kindergarten, start investing in college funds. And I think Lauren should at least get a part time job once their kids are in school.
ReplyDeleteinvest in what for preschool?
DeleteI think that both Ryan and Lauren have valid points. Education, overall, is important. If they start saving money right away, they can use some of those savings to first pay for pre-school, kindergarten, and elementary school and then continue to save for the next 12 years, when they triplets are going through school, for college. As they are not homeschooled, I don't think it would be wrong for Lauren to get a job once the kids were in school, at least a part time job to help offset the expenses. Also, if Ryan is working full time, I don't think it's necessary for him to work overtime, he needs time with his family too.
ReplyDeletePersonally, I would say that they should invest for what is needed now, and once the present is taken care of, then start investing in college funds for the future.
ReplyDeleteAutumn
How are they going to pay for the present?
Deletedo both split it 50/50 and then once preschool and kindergarten are done then stick that other 50% in with the first 50 and then get rolling on the college ed
ReplyDeletetravis
I would say that it would be better if they invested for college instead of saving for school. They should invest in some college saving plans and let the children chose where the money goes when they are older.
ReplyDeleteAdam
I would tell them that they don't need any fancy preschool or kindergarden. Sure they need to learn their ABCs and 123s and all that but seriously? Paying a bunch for something that they're not even going to get much out of doesn't seem too smart. Lauren can just homeschool them if she wants to be a stay at home mom anyway (which can't be that hard for preschool and kindergarden) As long as they have everything else payed for and an emergency fun set up they can invest some money for their kid's future. But it's not the end of the world if they don't.
ReplyDeleteeyezik
I think they should just send the kids to a normal preschool and kindergarden. Then, with the money that they would have used for the fancy school, they should put in an account for the kids college.
ReplyDeleteThey should save a little for preschool and kindergarden and then start investing for college, I don't think a lot of money should be needed for preschool and kindergarden.
ReplyDeleteBoth of them are important, because you can't get to college if you never start school! I'd encourage them to save for the upcoming preschool and kindergarten fees, but try to keep some money aside for an ESA for their kids' college. The job part can change over the years. The mom could stay home for a few years and then get a full-time job to up the contributions to the ESA's.
ReplyDeleteI think they both have good points... I think they should save up for a ESA and also save up for the upcoming preschool and kindergarten, but first take care of the preschool and kindergarten, then concentrate on the saving up for collage, that might even mean that Lauren will have to get a job.
ReplyDeletei think that they should send them to a normal preschool and kindergarten and save for a collage fund.
ReplyDeleteThey should send them to reg. preschool and kindergarten and invest that money for college.
ReplyDelete
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