Is $100k enough to raise 2 kids in dallas?? (Plano, Frisco: apartment, to rent)

[bringiton1]

I am in dallas from past few years. I have 2 young kids and want to give best education to them. I live by renting apartment and my family income is around 100 to 110k. I dont have any debts.

For now, my kids are very young and they are going to public schools and it is free.

I dont think our income change in the future much (except inflation) because of kind of work i do.

I know that higher education is much costly in US. Is 100k is enough for giving good education? What are steps i need to take to give them best e education?

[kyam11]

Yes it is. $100K in income likely means you can afford a $300K house. A $300K house can be had in a great suburb with great schools easily. I realize you are renting so you can obviously rent an equivalent or less in that same city with the same great schools.

Find out where you want to live and then start looking for places to rent. Your best bet is to post what specific city you will be working in and then start there.

[UnfairPark]

If you maintain a simple lifestyle and get kids math and english tutors or sports coaching, kids will go to college on scholarships. If you aren't earning much, loose a job or by choice become a bum, kids can go to college on full financial aid. Just don't inflate your lifestyle and you'll be fine. For starters, buy a modest home in a decent school district. If parents put emphasis on education and overall environment in school and among neighborhood kids is academic then usually children do well in schools.

Education is more expensive when you want selective colleges, even if a student is genius and eligible for admission, without financial aid or athletic scholarship, they charge a fortune that middle class parents can't afford even if they sell themselves. "Elite" colleges offer no merit scholarships.

[numbersguy100]

Originally Posted by UnfairPark

If you maintain a simple lifestyle and get kids math and english tutors or sports coaching, kids will go to college on scholarships. If you aren't earning much, loose a job or by choice become a bum, kids can go to college on full financial aid. Just don't inflate your lifestyle and you'll be fine. For starters, buy a modest home in a decent school district. If parents put emphasis on education and overall environment in school and among neighborhood kids is academic then usually children do well in schools.

Education is more expensive when you want selective colleges, even if a student is genius and eligible for admission, without financial aid or athletic scholarship, they charge a fortune that middle class parents can't afford even if they sell themselves. "Elite" colleges offer no merit scholarships.

First, some elite colleges do offer merit aid. University of Chicago does, for example. There are others that do, but that's probably one of the best schools that I know to offer merit aid. Ivy League schools don't offer it, but they have incredibly generous need based financial aid (as do many elite non-Ivy schools). If you go to the financial aid page for Harvard today and enter a HHI of $110k with two kids in college and few other non-retirement assets, they estimate that your yearly estimated contribution toward the cost of the education would be under $10k. A bargain for one of the best schools in the world and very manageable for OP's income level. I'd assume the relative generosity of their aid would grow with inflation.

This isn't to say that elite colleges are the end all be all - they aren't for everyone and they aren't even for everyone who could potentially be accepted to them. But OP's income level is high enough to probably afford modest housing in a good school district, and ironically it's low enough to get good need based aid at very good colleges down the line. There is definitely an income level where you get squeezed b/c you make too much for financial aid but you really do end up spending more than you feel like you should have to on college. OP simply isn't there. If you don't expect your income to go up much faster than inflation, you might want to prioritize buying a house at some point so you don't get priced out of where you send your kids to school. By the time your kids get to high school, the place you live now could be unaffordable in terms of rent.

[bringiton1]

Originally Posted by numbersguy100

By the time your kids get to high school, the place you live now could be unaffordable in terms of rent.

Even i thought the same. But i dont think i can afford more than 300 to 350k for house. I cannot get a house with that amount in good school district.

I dont want to put all my money for house . I want to save it for kids education.

[kyam11]

Originally Posted by bringiton1

Even i thought the same. But i dont think i can afford more than 300 to 350k for house. I cannot get a house with that amount in good school district.

I dont want to put all my money for house . I want to save it for kids education.

I have a house in Little Elm that would sell for about $270,000. It is 2300 sf with 4BR. Perfect family home and is in the Frisco school district which is a great school district. I have no doubt you can find a house for $300 to $350K in a great school district.

[UnfairPark]

Here is a list of homes below $350k in Plano. You have to save money for education but owning a house is more saving over comparable renting in long term. Just buy basic, don't get carried away.

http://www.realtor.com/realestateand...a-350000/sby-6

[TurtleCreek80]

Originally Posted by bringiton1

Even i thought the same. But i dont think i can afford more than 300 to 350k for house. I cannot get a house with that amount in good school district.

I dont want to put all my money for house . I want to save it for kids education.

I'm a little unclear about you question. Are you asking for advice on the best way to save for college?

[octo]

No way. With $110k/year your kids will have to eat cake to prevent starvation!

[NoClueWho]

Nope. Not these days. Not unless you want to live somewhere in the metro with a ridiculous commute, and/or somewhere that's clearly not one of the more desirable areas.

Also, depends on what kind of house you want for 200k-300k; whether or not you are willing to accept one that needs a lot of work and updating, and more importantly whether or not you have enough money already saved up to OUTBID all the folks lined up ready to put down huge down payments amounts or just straight up pay in full in cash.