Paying for private school

Tips and tricks for sending your child to private school

Tag: saving money (page 1 of 2)

Reasons people send their children to private school

Recently on a message board I occasionally read, a parent was wondering if they should send their child to private school. So she asked the parents of other private school children if her child would feel poor compared to other families and feel bad about themselves as a result.

One respondent decided to inform the original poster on the real reason they were considering private school:

If it were truly “education” that you care about, your kid would be in a high performing public school. Private school parents care more about the “experience” which is code for “rubbing shoulders with rich people to learn their values and customs and not hard working immigrant values.”

Angry person art

By SmurfyOwn work, Public Domain, Link

Wow, I am glad that respondent cleared it up for them – I bet the parent didn’t even know they were against education!

This kind of shaming response is quite common and the main reason for this web site. Those kind of knee jerk responses assumes that parents send their kids to private school to “rub shoulders with the rich people and learn their customs”.

I attended private schools for 12 years and have paid for a child to attend one nearly as long.

Not once in this time have I seen or heard anyone doing some sort of anthropological study of the ways of the wealthy. Indeed, all the kids attend all the same classes and, at many schools, are required to wear the same clothing (uniforms) to avoid status from being an issue.

Here are the reasons I have actually heard from parents sending their children to private or independent charter schools, as well as home schooling.

  • School matches the families religion
  • Alignment with the family values
  • Specialized learning environment where the private school focused on particular area such as
    • Special needs
    • College preparation
    • Military career preparation schools
    • The arts (dance, theater etc.)
    • An international based education where the child learns the language of their culture (very good for diplomats who will need to return to their country at the end of service)
    • Greek tradition (sports and academic having equal weight)
  • Smaller class size enabling better learning outcomes
  • Additional learning resources are available in some of the private schools – one I know of has Ipads, the other offers horseback riding for kids (apparently it calms the kids who have sensory issues).

I am sure I am missing some. And I would love to hear from any parent that sends their kids to private school to study the culture and norms of wealthy people to learn their ways!

And for everyone else – I do want to assure you that selecting a private school means you are focused on providing a good education for your child. And an educated child becomes and educated adult which benefits all of society. Keep up the great work and sacrifice and thank you.

 

Think multi-purpose

Ever noticed all those low profile and uninteresting hatchbacks, mini-vans and station wagons wheeling around?

Time to get excited about them because they are awesome.

We purchased our battle wagon for a net of $8000 even though it only has $70K miles and gobs of air bags.

Last month we needed a new side board (well, a side board, we never owned one).

New side boards were $1000 for low end ones unless you go with those glue and saw dust ones that have to be replaced soon anyway.

Too much! Guess those boxes stay on the floor.

We looked on Craigslist for weeks. And weeks. Even the cruddy stuff at low end stores was $500. Sigh. We were very close to dishing the money out for a new piece and cutting in other areas to make it work.

But wait, Craigslist has a 5 foot solid wood one for sale that on the Havertys awesome web site sells for $1000 new (love their stuff – so cool). And it is only $200 bucks and within a few miles of the house!

If only we had something to move it with – I am too lazy to rent something and it would take too much time. It might be gone and what if I don’t like it when I see it. In comes the incredible station wagon with seats that fold down! volvo-wagon-blueAn hour later the sideboard was now gracing our home instead of headed to the trash heap.  Money saving environmentalism.

On the way home I couldn’t help but realize the $800 saved was the equivalent of a 10% yield pay out on the wagon. That is pretty sweet contribution to the tuition.

Keep costs low and think multi-purpose.

Is A Used Car Cheaper To Own Than a New Car?

Is a used car cheaper than a new car to own? For those of us scrounging to pay for tuition there is a better (and easier) question to ask. And that is, what is my cost per use for this car?

Consider Cost Per Use Instead

Folks paying tuition don’t get to pick any car they want to won. Instead, we buy the safest cars possible and determine the correct one by comparing cost per use (in this case cost per miles).

Instead We Consider Cost Per Use on Large Purchases

Here is an example. Our car cost $45,000 new.  A long time ago. We paid net (after sale of the old car) $8000 for it second hand with 70,000 miles on it. Same features as the original owner had but with more miles on it, some character and a bit of a vintage feel. Let’s use the cost per use method to see if we paid a fair price for the vehicle.volvo-wagon-blue

Before we get into the numbers I realize some of you hate this sort of conversation. You find it is tedious and you never trust the numbers you end up with.  Send me a note or post a comment and I will run the numbers for you. And don’t worry about getting the match exactly right, just remember to keep cost per use in mind when facing a major purchase decision.

On to the numbers!

The original owner paid $45,000 for 75,000 miles of use or 60 cents for each mile driven, not counting fuel, tires, service and parts. Assume we keep the car another $75,000 miles and get the 75K, 100K and 125K maintenance work which will cost in total about $4000. Our combined cost for the car is $12,000, again ignoring consumables. Our cost will be 16 cents per mile or only 25% of the cost of the car if it was purchased new.  I declare this to be a good deal as we can get four of them for the same cost as the car was new.

Is A Used Car Cheaper To Own Than a New Car?

This doesn’t mean all used cars are cheaper than all new cars.

Today on Autotrader.com a 2013 Jeep Wrangler with 45K miles is selling for $25,900 despite having a poor side impact safety rating and marginal front impact rating. At the same time a new Subaru Forester, is selling for $26,100. Not as cool looking but stellar safety ratings.

If both cars are driven for 100K miles the Wrangler will need both the 75K, the expensive 100K services and a more expensive 125K service, and new tires for about $5000 in parts and labor. The Subaru will only need the $1500 75K service.

Let’s compare the cost per use of each vehicle in the handy table.

Wrangler (21 MPG) Forester (32 MPG)
Up front cost $25900 $21600
Service $5000 $1500
Gas for 100K miles @ $3 a gallon $14285 $9375
Total cost $45,185

 

$32,475

 

45 cents 32 cents

 

The Forester, despite being newer, safer, and more reliable and more gas efficient, at first glance appears to be about the same price as the used and cooler looking Wrangler. But the cost per mile reveals the Wrangler is 40% more for each mile driven. A brand new Forester is much cheaper then the used Wrangler.

The astute reader at this point will wonder – wait a minute – wouldn’t a used Subaru save us even more? I am glad you asked because today on Autotrader.com a 2013 Forester is $16,488.

Let’s compare cost per use of all three vehicles.

 

Wrangler (21 MPG) New Forester (32 MPG) Used 2013 Forester (27 MPG)
Up front cost $25900 $21600 $16488
Service $5000 $1500 $5,000
Gas for 100K miles @ $3 a gallon $14285 $9375 $11,111
Total cost $45,185

 

$32,475

 

$32,599

 

45 cents 32 cents 33 cents

 

Oooooh!  So sorry! The new car is still the most economical. The less gas efficient 2013 Forester combined with that 100K services hit really put the new vehicle in the lead.

We have found it helpful to think cost per use to get the most out of something so extra funds can be redirected towards tuition and hope you will too.

So the three cars I chose for this example were pretty close. Ideally, you are looking for comparisons that are really easy so that it is fairly obvious by adding up some numbers. But you get the idea. If you find a car that is safe and reliable but makes you go “meh” it is likely to be the correct car. That is why there are so many of them on the road as lots of other folks have come to the same conclusion.

If you are thinking a particular car you are looking into is so cool, move on. Get your excitement out of some fancy new shoes instead.

That is One Long Cable!

Eleven years ago we moved into our current home. And the previous owners had not installed cable television. To get it installed meant an all day visit and lots of holes would have to be drilled into the relatively intact walls. And then we would have a $100 a month bill.

We put it off. Then we thought about it. And then we passed on it and just used Netflix and then eventually Amazon Prime for videos and a fancy “digital” antenna for local television stations.

In the first year we spent $1200 less than we would have otherwise. Importantly, we missed all those advertisements that likely would have increased our spending even more. Ten years later we had avoided $12,000 in costs.

Last year we got a sweet deal on a used Volvo XC70. Originally $45,000 when it was new, we picked it up used for $12,000. After selling the previous car for $4000 the net cost was $8000.

Volvo Wagon - New to us!

Battle Wagon – New to us!

By skipping on the cable expense for the decade prior we essentially got a free car with all the gas it will need for many years paid for up front. And that is good because we need to pay the tuition bills.

Limit those little expenses. They add up quickly.

A Tale of Two Dishwashers

Our dishwasher was not functioning well. Repeated repair attempts had extended the life a bit but dirty dishes after each wash was the motivation to finally replace it.

We selected a washer that made sense for us (hard food disposal!) and had decent reviews.

Picture of an awesome Maytag Dishwasher with hard food disposal.

Awesome Maytag Dishwasher with hard food disposal.

There was a fancy one for $598.  Let’s assume we would have it installed for us rather than attempt to get the thing in ourselves.

The Numbers

 

Below are actual quotes from the site we purchased The Awesome Dishwasher (rhymes with West Guy).

 

Fancy Stainless Steel Version – Installed Fancy Stainless Steel Version, DYI
Base price $494 $494
Installation $139 $0
Install Kit $29 $29
Haul Away $15 $0
Totals $677 $523

 

So $154 more for the installed version. That is 30% more for the same functionality.

The Time

This might seem like a waste of time as I am wholly unqualified to install a dishwasher. And despite daily practice my ability to even use one has come into question (hence the hard food disposal). It would take a pro 1 hour. It took me two hours on a Saturday and another two hours on a Sunday. Since we took our time I was able to clean up all the junk under it, test it multiple times for leaks and line it up just right under the cabinet. The previous, professionally installed one, was a miniature leaning tower of Pisa.

And I didn’t have to wait for a contractor and can do it in the morning. 4 hours to save a measly $154. That is only 38 bucks an hour! Based on this calculator that is $79,040.00.

This is looking better already.

But wait – this is tax free money. I don’t have to earn that $154 which would have taken $215 in gross income (before taxes, withdraws, sales taxes and mystery fees). Now we are bumped up to $53 an hour.

The Adjusted Savings

That is better. $53 an hour equates to $110,000 annual salary.

Of course your salary takes priority but if you were going to spend a lazy afternoon with a non-fiction book you can have just as much fun watching a you tube video of how to install a dishwasher.

Change Your Mind Set To Make The Grade

Paying for private school means changing your mind set on seemingly small things. You can do this.

A Stitch in Time Saves Nine …Hundred Dollars

I am a fan of LL. Bean’s washable wool dress pants  as I wear fancy pants to my office job.

LL Bean is known for durable easy care high quality items. Their dress pants are a mix of wool and polyester which results in torrent of financial savings for the office dweller like me. Recently, a relatively new pair had the hem come undone and flapping in the breeze.

Think Before You Toss ‘Em

LL Bean Washable Wool Pants.

LL Bean Washable Wool Pants.

Normally I would have tossed it in the Goodwill bag and gotten a new one. More on that in a minute. First, a little more about these productive pants.

Their secret super power is that you can wash and hang them and they come out looking great without a trip to the dry cleaner. They can be more expensive up front, but as you have already learned sometimes it make sense to pay more up front.

The Savings

Let’s take a closer look at the numbers.

 

LL Bean Washable Wool Dry Clean Only Pants
Cost of pants $119 $119
Dry cleaning cost per wash 0 $5
Water cost per year $4 0
Number of times worn over 3 years 156 156
Gas cost of driving back and forth 0 1
Dryer costs 0 (we hang these on a dryer rack) 0
Hassle factor Low High
Total cost $124 $899
Cost per wear 80 cents $5.76

 

What? And that is just for one pair of pants. Assuming you wear dress pants 5 days a week the fancy drying clean only pants will cost you $4495 over 3 years. And this is before you consider shirts.

Surprisingly, we have found that doing this ourselves saves time as well. There is no driving and parking needed. And there is rarely a line at our drying rack.

$5000. And time saved. And it is better for the environment.

Back to the unfurling pants. My wife took up the hobby of sowing. She took one look at the unfolded hem on my near new pants and a moment later had them back in order. No need to ditch them.

Another $119 saved that can be added to the $5000 to use for tuition costs.

You can do this.

 

Better put an UGG on it

Consider UGG boots for the family as one of your four holiday gifts  (something to need, want, read and wear). They will be appreciated (or will be soon enough) and yield dividends.

Fight the cold

Winter floors can get really cold. Putting on socks – or even house shoes – is too much of a hassle. Cold feet lead to the heat creeping up. UGGs are slip on house boots that have wool in them. They keep your feat toasty warm. Wearing them on even a mild day can be uncomfortable because they are the perfect winter house shoe.

Be an environmentalist *and* save money

Don’t turn up the heat up to walk around the house. Put an UGG on it! We keep our house at 62 degrees Fahrenheit (16 Celsius) in the winter and everyone has a pair of UGGs.

With a onetime investment you are able to keep the heat down for years. This in turn enables us to increase our available cash for tuition payments.

Combined with a down blanket we lowered our heat from 72 degrees Fahrenheit (22 Celsius) at night to 62 degrees (16 Celsius) with no loss in comfort. Saving 3% on our bill for every degree we lower our heat means we dropped our bill by about thirty percent. And this applies for every month of the winter. Every year. On a $200 heating bill (it’s cold where we live) that is $60 bucks each month that can be sent to the school to pay for tuition. And it reduces are carbon emissions.

Keep going!

Your job is to find five of these kinds of savings. And then, once you have that done try to find more. To start off, turn down the heat and put an UGG on it.

A simple approach to the holidays

There is constant pressure to buy lots and lots of gifts to wow the children with great big piles of loot. But there are limits to available resources.

How about this time tested approach instead? Consider just 4 items for each child for the holidays.

  • Something they want
  • Something they need
  • Something to wear
  • Something to read

Give them the benefits of a frugal Christmas. This in turn may allow for higher quality items to be purchased while creating less waste.

Expect complaints. And comparisons to what other kids received. Be ok with that. Instead give your kids a great education and the tools, later in life, to buy stacks of material goods if they so choose.

A Financial Super Power You Can Use: The Snowball Effect

Paying for private school is a challenge but there is a secret super power available to you to help called the snow ball effect. The idea is that small changes start to build upon each other,  much like a rolling snowball,  to have an out sized total result in a surprisingly short amount of time. Usually this is associated with compound interest over many decades enabling a comfortable retirement.

However, unlike early retirees who strive to benefit from decades of compound interest we don’t have the luxury of waiting. We need the money right now! I first read about the more near term concept in the Tightwad Gazette and recommend you get a copy (from the library, of course) if you haven’t read it.

The Snowball Effect In Practice

Earlier I spoke of the power of moving to a decent, but not the best, school district as a savings enhancer. A small house, with its smaller mortgage or rent has other financial benefits – lower utilities being one of them. And this includes the peer pressure effect of self-reliance in the blue collar neighborhoods you will now likely reside. Wastefulness is correctly seen as a source of shame and embarrassment.

Small Differences Add Up Over Time

In such a neighborhood you feel pressured to do simple chores (like raking the leaves) yourself. This social pressure changes your outlook in a most valuable way and is the true turbo boost benefit from a smaller house in a decent, but not the best, school district.

An Example

Here is a real life financial snow ball example.

When we moved here the 30 year old home did not have cable. It *never* had cable. Ever. To get it installed would have meant drilling, installing and all sorts of mysterious things. So we skipped it and learned most folks on the street do the same. Fast forward ten years. That one decision to avoid a $120 a month extra expensive saved us many hours of time, protected us from adds to purchase stuff we don’t even know about and netted $14,4000*, tax free.

Our house comes with a free car every ten years.

All because the home wasn’t wired for cable and folks around here simply don’t do that sort of thing.

Now Roll It!

Later, we sold an old Subaru for $4000 and replaces it with a used station wagon for $12,000. I couldn’t help but notice the net cost of the car ($8000) was more than covered by the cable savings.

The savings on cable ($14,000) paid for the used car.  The used  the car was $45,000 new so that saved us  and additional $33,000.  Those very simple moves added up to a lot of savings we would have otherwise spent which went towards tuition expenses.

With some of those savings we paid the tuition and we bought a coffee machine which saves another $1000 a year.

In ten years we $12,000 saved on cable. We used those savings to pay for a gently used car and saved another $33,000. Those savings then funded a coffee machine which saves us another $10,000 over ten years. That is $55,000 in savings with three simple and repeatable steps that take less time and effort than the alternate steps. No need to tune into the latest shows (we can’t), nor to get our used car detailed (why would we do that) or drive to the coffee shop (we have it here).

What About The Extra Time

The savings go to the tuition payments. The extra time? We spend it leisurely looking for additional clever things to do .

Once you start a snowball it is a lot of fun to keep rolling the sucker.

 

What To Look For To Start Your Own Financial Snowball

Look for neighborhoods where folks are sweeping their own sidewalks, mowing their own lawns and washing their own cars. That is the correct place to live. Or starting living the way now – you don’t even have to move.

Are you sure you can’t afford private school? Reconsider the power of the financial snow ball.

Enormous snowball made in South Park in a snow-covered Oxford by Kamyar Adl

Enormous snowball made in South Park in a snow-covered Oxford By Kamyar AdlFlickr, CC BY 2.0, Link

* We have been here 11 years so total saving is actually $15,840 on the cable, a few thousand on items we never bought and a few thousand more for productive things we did with all that free time that we didn’t have to pay for. So it is more like $25,000 in savings but for this exercise you get the point. You can do this.

 

 

 

 

 

 

Do you want a $20,000 raise? Learn to use your kitchen table as a financial power tool.

My table saves us money. You can have one too. Chairs are optional but encouraged.

Here is how you use a table to save money; if you eat out at a restaurant get it to go and eat at the table you have at home. That will save you 15-20% on the tip. Ideally you should eat at home most of the time but if you don’t this simple technique saves time and money.

Paying for Private School French Country Kitchen

Paying for Private School French Country Kitchen

Tips add up

Let’s take a look at the numbers. Assume you tip 20% and eat out as a family, three times a week for a total expense of $150 a week. 20% of that cost – or $30 dollars – is spent on the tip. Skip that and in a month you will save $120 while eating the exact same food. In a year that is $1,440 not spent. And you don’t have to wait for the check.

In ten years you will have saved $14,440 in expenses which would have cost over $20,000 in income before taxes to pay for during that time. All that from  thinking differently about your kitchen table.

Keep at it!

Keep reading to collect ten of these money saving techniques and suddenly paying for private school might not seem as daunting.

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