Private Schools (2014, mortgages, credit card)

[CMMom]

Same as above. On paper (and to the IRS), it looks like we're swimming in dough, but they don't see the difficulties we run into as two self-employed people when cash flow is slow and the overhead still has to be paid. Yes, "first-world problems," but problems nonetheless. The employees and the rent can't go unpaid, so we often do for weeks (or sometimes months) at a time. Cash flow is not equal across the 12 months; some months, we're flush, and for some months (particularly during the summer, when tuition is due), we're really hurting. There are many advantages to being self-employed, but many risks too. Easy for you to laugh, but walk a mile in our shoes...

[LovelySummer]

Please let me in on this Dave Ramsey strategy for fast mortgage payoff.

Originally Posted by DawgPark

Why do you assume there is a mortgage? One reason our family can afford 2 private school tuitions is because we bought less house than we could afford 15 years ago and sacrificed to pay it off in 10 years before our kids started school. We kinda did the Dave Ramsey thing before Dave Ramsey was cool.

Our friends all have bigger houses with granite countertops, nice furnishings, basement, etc. . . but we place a higher value on our kids' education. We also don't do expensive trips, vacations, or restaurants.

It's all strategy, planning, and figuring out what your priorities are.

[LovelySummer]

Same here basically. Get paid when clients pay. What we do is live at a level that is below our means (when salary is considered at an annual level), so to speak, and then when we get the bumps in pay, I allocate to random stuff like paying off tuition, nice trips, eliminating debt, savings. For example, I drive a late model luxury car but paid cash so I don't have a monthly payment and I got a good deal bc it was used. As another example, the home that we purchased last year is a foreclosure. It's amazing how much money you can save if you saavy and refuse to simply spend money because you have it or might have it in the future.

So, as a previous posts indicate, there are all types of ways of paying for private school. I think most people are not simply swimming in old money as it may seem.

Also, now that we are in this loop, I have learned that there is actually something that many people may be doing that the general populace may not know about wrt paying for private school. Some schools allow parents to use a CREDIT CARD to make monthly payments. I imagine that as long as you can stay ahead of the curve or if you have enough of an available balance there, you can easily finance a private school education. I had no idea some people were literally "financing it" but there you have it. So, no, it's not all outlay of cash for some. And when the admission letter comes, the school does not ask how you will pay so I imagine credit card is an option.

Originally Posted by CMMom

Same as above. On paper (and to the IRS), it looks like we're swimming in dough, but they don't see the difficulties we run into as two self-employed people when cash flow is slow and the overhead still has to be paid. Yes, "first-world problems," but problems nonetheless. The employees and the rent can't go unpaid, so we often do for weeks (or sometimes months) at a time. Cash flow is not equal across the 12 months; some months, we're flush, and for some months (particularly during the summer, when tuition is due), we're really hurting. There are many advantages to being self-employed, but many risks too. Easy for you to laugh, but walk a mile in our shoes...

[El Passeaux]

Does it matter if the school is religiously affiliated? Those can be affordable.

[deacongirl]

I would think that paying for private school on a credit card would be strongly discourage by any financial planner.

[dblackga]

Two kids through 15 years of private school -- it was nice to get to college, because college, with the HOPE scholarship, was cheaper!!

Our furniture was old, we cut our own grass, we had a house we could afford, my husband did a lot of consulting on the side, we both worked (me only part-time, to make sure I was home for the kids at the end of the day), our cars were "ghetto", we bought used books or books on Amazon, we bought second-hand uniforms, etc., etc. Lots of vacations at Grandma's. We did it because we believed in the school's mission, and we appreciated the ability of the school to meet their intellectual and artistic needs. At times, the kids resented not being one of the "rich" kids (and god knows, there were plenty -- most of the cars in the student parking lot for the high school were nicer than ours!) but it didn't hurt 'em, and they both have an appreciation now for a budget and how to save for goals.

[PeteATL41]

Not to put down any individual school, but caveat emptor ... just because you write the $20K tuition check, the contributions to annual fund, periodic capital campaigns, and random monthly expenses - doesn't mean your child is getting a great or better education. Quality & style vary greatly at different schools and many of the top public clusters have better college placement than a lot of the privates. The school has to be a great match for the child (ren) and family and personally I think the financial requirements needs to fit into your overall picture without too much of a strain - better still get the grandparents to pay for it (great way to distribute wealth across generations with no tax implications) :-)

[Larry X]

Originally Posted by CMMom

I have two kids in private school. Well, we sacrifice. My kids have never been to Disney World or on a ski vacation, etc... We drive old cars that are already paid for. We have to wait to do home improvements that would be nice, but aren't necessary. We pay full fare. Tuition assistance is not as common as you might think. However, some schools use the FACTS program whereby you can pay monthly instead of in 1 or 2 chunks as many schools require. We are not super wealthy by any means (although Obama would say we are, but I digress). You can find private schools that are not that expensive, but most of the "elite" schools in Atlanta do fall in the range you mentioned.

Thats sounds like a sucky way to live. Why not home school or send your children to a good public school.

[Larry X]

My wife would have had a way better childhood if her parents didn't decide to send her and her two siblings to private school. Because of that, her dad worked 6-7 days a week, and never spent quality time with the family because he was always at work or sleep. Her mother worked full time too and basically had to take care of the kids herself, help them with homework, cook, clean, etc. This caused stress and strife in their relationship. Now all three are grown, only one graduated from college, and the other two (including my wife) are college dropouts making very little money. Funny thing is, her cousins went to one of the worst public schools in America and they are more successful, graduated college with masters degrees and have good jobs.
So OP if you cannot comfortably pay for private, I recommend don't do it, just move somewhere with good public schools.

[CMMom]

Originally Posted by Larry X

Thats sounds like a sucky way to live. Why not home school or send your children to a good public school.

No, not at all. My children's education is of utmost importance to me and my family. My son has some mild learning issues, but is extremely bright, and would receive no help in a public school setting because his achievement level is too high. He receives extra help at school in a private setting at no additional cost to me above tuition. My personal belief is that 30 children in an elementary school classroom with one teacher is counterproductive. The kids "in the middle" (average to above average, but not gifted) students get lost in the shuffle. I'm not a big fan of Common Core or high-stakes standardized testing; I don't believe it is particularly meaningful and it's definitely harmful in terms of lost teaching time due to repeated "drill and kill" and is also very anxiety-provoking for the children for no real necessary reason. I work and couldn't home school, nor do I believe that my children would respond particularly well to me as a teacher. So, I thank you for judging me and my decisions, but we're just fine, thanks.