I'm curious about approaches to investing--or not--for kids' higher ed. I've become cynical about the higher ed enterprise. Schools appear to massively inflate their list price, then combine it with deep discounting for exceptional students and the less affluent, in order to skim revenue from wealthy parents with unexceptional kids. The structure seems sustainable only on the basis of an ever-increasing number of wealthy internationals for whom a U.S. education is a difference-maker.
Someone mentioned the 529 plan, which I've heard is wise. Beyond that, the only things that seem to make sense are:
1. Invest in your kids (academics, extracurriculars) to give them the best chance of earning discounts (e.g. full rides for National Merit scholars).
2. Put as much money into retirement vehicles as possible (excluded from asset calculation for expected family contribution)
3. Put as much of the rest into the largest home/ranch you can afford (primary residence also excluded from EFC calculation).
I once felt bad about not saving for my kids' college. But they each earned 40+ hours of college credit during high school. They got academic and need-based aid. They worked summers. I did little beyond using the federal tax credit to leverage a modest gift into $10,000 per kid. All three will graduate debt free, though not all from their first-choice school. If I'd put away 100K per student, not much would be different, except that colleges would have relieved me of 300K.
