kids saving for college

Am I way out of touch, or is it reasonable that I think my kids can save very substantial sums toward their own college education? I paid my way via savings, part-time jobs, and loans. I plan to strongly press my kids into banking most of the money they come into possession of, including babysitting, lawnmowing, part-time jobs during the school year, full-time jobs during the summer, birthday cash, etc. because I cover all of their needs and most of their wants (including gas, insurance, liberal use of my car, etc). I will help them maybe 25% with college, but as a somewhat older parent, I will need to be saving in earnest for my own retirement when they're in college. And what about grad school, for pete's sake!

I think it's a lot harder for them to learn to save than it is to learn to spend. Any idiot can do that! If they learn to save almost all of their money now, it will be a cakewalk to learn to budget, set goals, be frugal, seek value, etc. down the road. Also, I think they can amass maybe $15-20K by the time they're 18 from jobs, etc.

What do you think?

I have both a young daughter and a different take on the matter than you do. For context: (a) I largely self-funded - through scholarships, assistantships, loans, work, savings - 3 college degrees; and (b) I will be near 60 when my daughter starts school.

Some of my differences are philosophical - but I will focus on what I consider to be the practical.

First, although I do not know the ages of your children, I do think $15-20K is very optimistic for an 18-year old to have accumulated on the basis of gifts/work/etc. (or, at least, legally accumulate). I am not sure I know any teenagers who are even close to that type of implied earning power.

Second, focussing on a specific savings goal that you wish your child(ren) to meet can be penny-wise/pound-foolish. If the child has to sacrifice time spent studying for good grades, time he/she could spend in athletic/other school activities and/or community activities in order to make money then he/she is not going to be able to become the type of candidate the premier schools want to attract and even recruit. I think it is much important (plus much more enjoyable for the child) if he/she can become a more well-rounded person, even at the sacrifice of dollars in the bank. If circumstances dictate that type of financial imperative, that is one thing, but I wouldn't try to create those circumstances if I did not have to.

Third - and also filed in the penny-wise/pound-foolish category - is the potential impact on financial aid. Assets held in the name of the child have up to 6 times the impact on financial aid eligbility as assets held in the parents' name. You are effectively penalizing those savings by 35%, if you are anticipating your children will qualify for financial aid.

There are ways to encourage long-term savings then "pressing" your child into it. I also think there are a lot better ways to plan for higher education expenses.

Hope this helps.

TJ

There are many parents who accept their responsibility for their children's education.Some parents refuse to provide any help for a variety of reasons.Some parentsbelieve that if they refuse to contribute, the school will declare the student independent and pick up the parent's share of the college costs.Parents who are divorced or separated use their refusal as a weapon against the other parent. Some parents feel that their responsibility ends when the student walks out the door on their way to college.They feel that their children are adult now, so it's their responsibility.Some parents feel that they can't afford to pay for college or are up to their eyebrows in debt.
I think that parents have a greater responsibility toward their children - help them pay for college. I have two children and I really understand it is not easy but I have to... I only can recommend this book The Best Way to Save for College (http://digitsy.com/us/item/0981549101) - A Complete Guide to 529 Plans, 2009