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Am I right?
Old 08-27-2018, 06:16 PM   #1
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Am I right?

His financial aid hasn't shown up and rent is due. He has a great deal --- 1 of 3 bedrooms in a legal basement apartment (has windows) for $580 month, rent was due 8/25. Plus he will need apx $500+ for books. I have booked / paid for 2 cruises when I thought he would be fine with all the scholarships. SFSU will wait for tuition / fees .... not sure landlord will be happy with late rent & bookstore needs $$s. He's been in line for almost an hour

My comfort zone is to keep 10k in USAA savings & 5k in Schwab savings.

So to cough up $1200 I'm thinking of taking it out of IRA (1700-27% taxes withheld) instead of cash. Or monthly whatever $$s. Leaving him in line to figure the 'eventual' out but gotta keep landlord paid
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Old 08-27-2018, 06:32 PM   #2
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If it was me I'd just take it out of savings and keep the IRA intact, and let the savings slowly build back up. $1200 is less than 10% of the $15k savings so it's a relatively minor hit. Re the bookstore, when DW and I were finishing our degrees we found that Amazon's textbook prices were half or a third of the school store, but this was ~23 years ago so that may no longer be the case. But I'd sure check around.
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Old 08-27-2018, 06:35 PM   #3
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I agree with Walt34, keep it simple and take it out of savings. Then just build the savings back up as needed.
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Old 08-27-2018, 06:36 PM   #4
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Seems the IRA can be the backup comfort zone, and instead of drawing it, you use your cash instead and avoid (delay) the income taxes. The backup would still be there.

BTW, I would love to have my SFSU daughter pay only $580 for one bedroom.
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Old 08-27-2018, 06:58 PM   #5
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He works 2 jobs & interviewing for a 3rd. No loans yet: (1) Children's Discovery Zone on Sundays (2) waiter on Saturdays (3 hopefully) receptionist Tues / Thurs am

Plus Civic Symphony & subs in other ensembles

Also 'rents' books online so needs a Visa with space (FICO >720)

Just put 1k checking & 500 Visa bc school says it could be a month b4 all scholarships post.

School bills to date:
Freshman 1300
Sophomore 1300
Junior 2600
Senior 1500

Damn he's cheap!
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Old 08-27-2018, 07:05 PM   #6
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I'd take it out of savings. The IRA will be there if you need it. Might want to check into renting textbooks DD is able to save $ on some textbooks this way.


And kudos on all of the work he's doing to help pay for his education!!
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Old 08-27-2018, 07:08 PM   #7
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Seriously it's his fault he went to the middle east b4 making sure it was all cleared up in May. But aftee seeing what others pay, I won't complain on paying 6700 for undergrad

Convinced me, coming from savings (Schwab under comfort zone)
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Old 08-27-2018, 07:40 PM   #8
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I'm going to tease gayl a little bit and say that I smell a humblebrag in here somewhere...something about having a smart, hard-working kid, whose college bills are so low his Mama can go on two cruises. We should all have such a problem
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Old 08-27-2018, 07:42 PM   #9
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No no! I'm just not wanting to save less bc a kid spent the summer in the Middle East instead of taking care of business but if he isn't 1 of 3 in that apartment then he'll go back to sharing a room which he hates
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Old 08-27-2018, 11:40 PM   #10
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Sounds like he is young and didn’t make the best choice but still sounds responsible.
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Old 08-31-2018, 11:50 AM   #11
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Quote:
Originally Posted by gayl View Post
He works 2 jobs & interviewing for a 3rd. No loans yet: (1) Children's Discovery Zone on Sundays (2) waiter on Saturdays (3 hopefully) receptionist Tues / Thurs am

Plus Civic Symphony & subs in other ensembles

Also 'rents' books online so needs a Visa with space (FICO >720)

Just put 1k checking & 500 Visa bc school says it could be a month b4 all scholarships post.

School bills to date:
Freshman 1300
Sophomore 1300
Junior 2600
Senior 1500

Damn he's cheap!
You are awesome and he is, too. I like that he is working as well as getting scholarships, etc.

Very similar to my experience - had a 4 year ROTC scholarship (only got $100 a month - nothing like what it is today), so also worked a part-time job on weekends, also picked up TA jobs grading papers due to fairly decent grades - last semester also worked internship as GS5 for Dept of Energy - best experience for me as a soon-to-be engineer learning the practical side of things....no debts, went into Air Force - did my 4 years active....etc.

My father also sent me $350/mo to help with my rent/etc.

So, the teamwork in the end usually reflects in success later on.

Great kid....good job!
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Old 08-31-2018, 02:10 PM   #12
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He sounds very responsible, to me. It sounds like maybe the Middle East trip was something that "grabbed" him and wouldn't let go. Who knows, he may have learned things or made contacts that will pay off big-time, one day.

Quote:
Originally Posted by Teacher Terry View Post
Sounds like he is young and didnt make the best choice but still sounds responsible.
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Old 08-31-2018, 02:16 PM   #13
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My college-age kids didn't have a credit card and didn't need it. They could use their debit cards for Amazon, other online places, and physical stores. They've had debit cards associated with their checking / savings accounts since age 13 or so.

Yes, one needs money in a checking account to use a debit card attached to the checking account. But ACH transfers to checking accounts are trivial. And of course, paychecks go into the checking account perhaps even by direct deposit.

And as already decided, one should use emergency fund money for emergencies such as what is described in this thread. Otherwise, why bother having an emergency fund?
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Old 08-31-2018, 02:32 PM   #14
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Somehow, my Daughter managed to rack up $300,000 in student loans for grad school and her Doctorate!
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Old 08-31-2018, 02:43 PM   #15
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Somehow, my Daughter managed to rack up $300,000 in student loans for grad school and her Doctorate!
I hope this is an exaggeration!

Although I have a neice who is racking up an estimated $100K in debt for a non-employable Masters Degree.
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Old 09-27-2018, 05:57 PM   #16
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It took THIS LONG for his scholarships to show up! I cash flowed him $1500 and he just called saying he is bringing me a cashiers check next weekend to repay the 'loan.' (Wont see him til then) Can't believe it took an extra MONTH, but they take out tuition / fees / what he owes bookstore 1st so if he's got 1500 extra then most is there.


EDITED: just looked and apparently they said a month / it took a month / at least his final semester should be on time .... especially since he wants to spend winter break at his boyfriend's in Boston (he's there in law school racking up debt)
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Old 10-06-2018, 12:11 PM   #17
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It took THIS LONG for his scholarships to show up! I cash flowed him $1500 and he just called saying he is bringing me a cashiers check next weekend to repay the 'loan.' (Wont see him til then) Can't believe it took an extra MONTH, but they take out tuition / fees / what he owes bookstore 1st so if he's got 1500 extra then most is there.


EDITED: just looked and apparently they said a month / it took a month / at least his final semester should be on time .... especially since he wants to spend winter break at his boyfriend's in Boston (he's there in law school racking up debt)
Came in for a dinner celebrating a mutual friend's BD (another musician, room full of musicians). Expected 1500 got 1000. Good enough. But dropped bomb that he's doing a 5th year. Warned him to take 18 units a term when he started (135 unit degree + dbl major) but symphony & work apparently negated that. Ah well .... now on track to graduate owing 7k. Will have to have him start looking for MORE scholarships as his was only for 4 yrs
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Old 10-06-2018, 12:46 PM   #18
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I hope this is an exaggeration!

Although I have a neice who is racking up an estimated $100K in debt for a non-employable Masters Degree.
Just saw this, No exaggeration! Her first job after her licensing only pay's 50k and she lives in Denver Colorado with her husband. She never talks to me about finances, but I advised her to work for a non-profit so after 10 years the debt will be forgiven. Also, offered her a job with a friend paying $175k to start.but it required moving to Yuma, AZ and that was a non-starter.
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Old 10-06-2018, 01:07 PM   #19
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Just saw this, No exaggeration! Her first job after her licensing only pay's 50k and she lives in Denver Colorado with her husband. She never talks to me about finances, but I advised her to work for a non-profit so after 10 years the debt will be forgiven. Also, offered her a job with a friend paying $175k to start.but it required moving to Yuma, AZ and that was a non-starter.

JD or MD or ??
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Old 10-06-2018, 04:17 PM   #20
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JD or MD or ??
PsyD.

Just noticed your location, DD did undergrad in Ann Arbor!
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