Saving

So after speaking with my mother-in-law who has her last son on his mission (Elder Ian Makechnie!) and talking about the financial cost of a mission and crappy medical care on a mission I had a major panic attack.  Maybe just a reality check.  Saving for college and missions.  It looms.  It creeps upon us closer and closer.

If any of our children go on a mission and the cost is still $300/month, then $300 x 24 months = $7200.  That’s not pocket change!  If the cost is $400 a month, then $400 x 24 months = $9600.  Ah, the panic…we’re teachers living on teacher salary.  Must have plan.

Years ago we set up a tax-exempt Fidelity account strictly for education.  Only $50 a month is put in but guess how much it has accumulated?  $14,211.16.  Cool.  That will buy some books at least!  Really though, it’s pretty amazing how fast it accumulates and it’s sobering to see the HUGE pay-offs by starting early.  We also use a UPromise credit card which contributes a % of spending to college funding.

Alright, so I went to our on-line banking system, ING.  I love ING.  It’s a savings account that gives the best interest I know of.  I set up an account strictly to store money for our tax bill that is due every Christmas.  I also set up an account for each child.  Click here to start saving with ING.

Now, thinking of missions and college.  Nelson is the most likely to go on a mission so I set up a recurring transfer from our local bank to his fund.  Only $50/month = $600/year.  A doable monthly expenditure.  But in ten years when he needs money?  He’ll have $600 x 10 years = $6000.  I’m counting on him working his booty off in high school.  He’ll hopefully be able to earn the remaining $1200 or $3600.

Now for the girls.  I didn’t set up as big a transfer though they may need it as well.  Just $10/month.  $10 x 12 months = $120.  $120 x 10 years = $1200.  It’s something.

Maybe we’ll discover $20/month is doable.  Maybe we’ll earn more money in the future and be able to contribute more.  For now, this is good.

So, the point is:  SAVE.  PLAN for the future.  I feel so much better.

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One thought on “Saving

  1. Emmy

    Words from the wise….
    That is awesome, Ben and I have started talking about getting some accounts set up for the kids.
    We’re sad we missed the Nelson parties at Christmas!! It’d be great to see you guys sometime (before baby comes….end of March…).
    Tell everyone hello!

    Reply

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