Announcement

Collapse
No announcement yet.

Private or public school?

Collapse
This topic is closed.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Private or public school?

    Debating sending both kids to private school from K-12. Assuming that the private school is a better education (huge assumption, I will do my due diligence), I would love feedback from this financially savvy group if it’s financially worth it.

    Private school for both kids would be ~$80k/yr. It would decrease our future savings rate to ~15%.

    The upside is we have no student loans, our only debt is our mortgage, and we already have seven digits in retirement savings thanks to my husband who started saving early. We are in our mid/late 30’s and neither of us plan to retire early, but who knows, one OB lawsuit and I might feel differently. I want to keep the flexibility to walk away if needed and am wondering if paying for private school could take that away.

    Is there a NW where paying $80k/year for private school would be financially responsible?

    Assuming that private school is actually significantly better (huge assumption, and I don’t want to debate this here- purely want a financial perspective), what would you do?

  • #2
    If you have saved and planned for retirement already and taken care of business there --- whatever is left is your business and choice.

    The simple financial answer? No, it's not.

    But choosing private over public is much more nuanced that straight xoxo's, academic or financial. It's not only primary and secondary school. There's a significant tendency to continue to private college and onwards too.

    Comment


    • #3
      I would do it in your position if it was significantly better. I'd probably even do it if it was only slightly better. That's just me, though.

      Comment


      • #4
        Before Kamban tells you, I need to mention that it is a contentious topic here . Most members will give you advice about public school.

        I will tell you that we send to pvt , no regrets . I also agree with others that it is not necessary that pvt schools are better , but it is a personal decision .

        if you guys make decent money and save a lot ( numbers not mentioned), you will be ok regardless .

        15% of million is different from 15% of 400k.

        So as long as you save enough that you can retire comfortably at your desired age , you would be fine .

        It’s obvious that you have to work longer to pay that tuition .

        Comment


        • #5
          Originally posted by uksho View Post
          Before Kamban tells you, I need to mention that it is a contentious topic here . Most members will give you advice about public school.

          I will tell you that we send to pvt , no regrets . I also agree with others that it is not necessary that pvt schools are better , but it is a personal decision .

          if you guys make decent money and save a lot ( numbers not mentioned), you will be ok regardless .

          15% of million is different from 15% of 400k.

          So as long as you save enough that you can retire comfortably at your desired age , you would be fine .

          It’s obvious that you have to work longer to pay that tuition .
          Thank you! Definitely don’t want to start a contentious debate about the quality of education so the question posted for this forum is purely financial. My husband grew up in public school and I went to private school - we are both successful. I think it depends on the kid/the school district so it’s a personal decision with many variables.

          I guess I was hoping someone could tell me ‘at $ net worth, you can stop saving >20% in your 30’s’.

          Comment


          • #6
            Nope. There's no special formula. Create ISP. Retirement goals. Age goal and then savings goals to get there. The savings rate is a rough rule of thumb as is x25-33 retirement budget.

            Only you know your financial situation and priorities for spending. Simply put. Private school is a significant cost and most will tell you a poor financial investment in the dollar's sense.

            That said, we went private school - not the best financial choice by any means. But we felt worth it that goes beyond finances.

            OP == Don't worry - this issue comes up quite frequently in this forum and the opinions span the entire spectrum -- yet we still all get along

            Comment


            • #7
              I don’t think there is a magic number of NW that it’s okay to send your kids to private school. It all depends on the other variables. Income, savings rate, desired retirement age and yearly spend, etc. you’ll have to do some spreadsheeting and make some assumptions, but you can figure out if it is worth it to you.

              Personally I don’t think I’d spend $80k when the alternative is free.

              Comment


              • #8
                Originally posted by ObgynMD View Post

                Thank you! Definitely don’t want to start a contentious debate about the quality of education so the question posted for this forum is purely financial. My husband grew up in public school and I went to private school - we are both successful. I think it depends on the kid/the school district so it’s a personal decision with many variables.

                I guess I was hoping someone could tell me ‘at $ net worth, you can stop saving >20% in your 30’s’.
                there is no formula, but you put everything in the compound interest calculator , see if you reach your desired number in so many years , you can put different interest rates . I usually use 5%, it could be less or more , but at least you get an idea ( I am sure you know all this , perhaps you need reassurance). You are already beyond million in your 30s, more than likely you would be fine .

                Comment


                • #9
                  You will get a range of opinions regarding private/public school based upon prior experiences. You get one shot at educating your children. We sent both of our kids to parochial schools. Yes, it was expensive. We would do it again in a heartbeat.

                  Comment


                  • #10
                    Originally posted by pierre View Post
                    I don’t think there is a magic number of NW that it’s okay to send your kids to private school. It all depends on the other variables. Income, savings rate, desired retirement age and yearly spend, etc. you’ll have to do some spreadsheeting and make some assumptions, but you can figure out if it is worth it to you.

                    Personally I don’t think I’d spend $80k when the alternative is free.
                    The alternative is “worse” than free - you have to pay for it in property taxes whether you use it or not! But that is a sunk cost.

                    Regardless, sometimes private school is a good choice, sometimes not. Many variables. We did both at various times. (Hint: each kid is different too!)

                    As for the finances, everyone has their own priorities (assuming they are intentional enough about it to post here), so I am a plus one for making an investment plan that sets out your priorities. See this example by WCI. School goals probably in Sections 1/5. https://www.whitecoatinvestor.com/ho...nal-statement/

                    So depending on your cash flow you may have to work longer in order to fund private school K through college. It is simply a time value of money problem, less invested along the way = less invested at the same point in time all other factors being equal.

                    Comment


                    • #11
                      “I think it depends on the kid/the school district so it’s a personal decision with many variables.

                      I guess I was hoping someone could tell me ‘at $ net worth, you can stop saving >20% in your 30’s’.”

                      Congratulations. IF someone gave you a number, what would you do? Personally, you could restate the question: Should I cut current spending or retirement spending to pay for private schools?
                      Keep saving 20%.

                      Comment


                      • #12
                        I believe in previous posts your NW is already > 1 million. You would be fine financially sending them to private school. You aren’t stuck either way no matter what you choose and can always change.

                        My kids used to be in private school and fairly recently switched to public school. My personal experience is that their education is actually better in the public schools for a variety of reasons. Also, their is less spoiled/entitled rich kids who model their behavior from their parents. We were involved in fund raisers, etc so we knew a lot of these families and could see exactly where it was coming from.

                        In our public school there are more kids from different walks of life which I feel is important my for kids to see.

                        Our public school district is excellent, so I’m lucky to have choices. Clearly if our public district was a train wreck I would likely switched to a different private school.

                        Good luck!

                        Comment


                        • #13
                          What are you going to do about college? I don’t think it’s realistic to shell out $80k/year K-12 then suddenly say “ok you are on your own”. So you could be staring at $60-70k/year per kid college bill if they both went to private college. More if you are talking 15+ years in the future.

                          Comment


                          • #14
                            This is a very personal decision. From a financial standpoint, as long as you can meet your retirement goals then it's irrelevant what you're spending your money on.

                            Public vs. private school is a different debate depending on what your public schools looks like. We live in an area with great public schools, so we'll have a hard time trying to justify the costs. I would look at the outlook of your children with private educations vs. your children with public educations + the would-be private school tuition invested over 60-80 years.

                            Comment


                            • #15
                              99.9% in favor of public for the areas I’ll always live in.

                              I couldn’t believe it to hear a family member spending 80-100k a year on 2nd grade.

                              With that said he couldn’t believe I spent 30k a year on my kids for their sports

                              Athletics give my kids the best opportunities possible to get into any school they what whereas I’m sure he feels the private route gives his kids those opportunities- there are worse things out there to spend money on with all the money most of us on here make… so if it’s a high priority for you, do it

                              Comment

                              Working...
                              X