Middle class affording private school

[happycrow]

Wife and I are both recovering academics, middle-class earners much as described by HockDad, and with about that income. Trying to send our kid to a private would be one of the most fiscally irresponsible things we could ever do. I think Ojiaka's dead on it -- I see lots of people trying to keep up with the Jones', buying houses that start in the 200-300k range in expensive locations with HOA fees, high property taxes, and other silliness far beyond their means, when they still haven't managed to put six months' income in the bank. And if they *can't* put six months' income in the bank, they're not middle class.

When you're middle-class you should be saving and acting like it so that some random job event beyond your control doesn't plunge you into poverty, not chasing after the rich kids and "faking it til you're making it." Sit down with your kids at night, every night, and ram them through their sight-words or whatever it is they need to do until they qualify for G&T, or get them into a charter, instead.

[J800]

Originally Posted by happycrow

Wife and I are both recovering academics, middle-class earners much as described by HockDad, and with about that income. Trying to send our kid to a private would be one of the most fiscally irresponsible things we could ever do. I think Ojiaka's dead on it -- I see lots of people trying to keep up with the Jones', buying houses that start in the 200-300k range in expensive locations with HOA fees, high property taxes, and other silliness far beyond their means, when they still haven't managed to put six months' income in the bank. And if they *can't* put six months' income in the bank, they're not middle class.

When you're middle-class you should be saving and acting like it so that some random job event beyond your control doesn't plunge you into poverty, not chasing after the rich kids and "faking it til you're making it." Sit down with your kids at night, every night, and ram them through their sight-words or whatever it is they need to do until they qualify for G&T, or get them into a charter, instead.

Agreed. Before my parents entered law and educational administration, they were both bringing in ~$90K combined. They managed to pay for private elementary school and still save for retirement, college funds, etc. Granted they did not drive luxury cars or live in a $400K house.

Your DTI ratio is extremely important. I have no doubt in my mind that in 2015, a family with two earners making $95-100K combined can afford a $300K house (20% down) while being able to save, but they will have to give up a few things like luxury cars and not try to keep up with the Jones' like you said.

I worked as a financial planner my first job out of college, and a few of the families I advised were bringing in below $100K combined. Top-tier private schools were definitely out of reach but they were able to buy homes in Plano, McKinney, East Dallas, and a few other places and still live comfortably while giving their children access to a quality education.