I'm curious how folks here process saving for college and balancing out giving children options/risks of over-saving/valuing private colleges.  My partner and I are fortunate to have a good, steady income and are currently maxing out our tax-protected retirement accounts.  Both of us were also lucky enough to graduate college without any significant debt (one of us did four years at a private college, the other did 2 years private/2 years public) thanks to parental support.  On one hand, we want to give our children the same opportunities but on the other hand, looking at projected costs it's hard to fathom that a private school is providing adequate value for the cost difference.

I've put together a projection in excel to help us plan for our 529.  If our kids follow the standard timeline (i.e. no gap years), they'd be entering school in Fall of '29 and Fall of '31.  

By my projections the future value for four years of private school would be around $440K (1st child) and $465K (2nd child) while public school would be around $160K/$170K.  If we were to fully fund each child's 529 to plan for private school and they attended public school instead, each of the 529s would be left with over $325K after graduation.

Obviously there are options for that leftover money including graduate school, rolling it over into their own children's (or other relative's) 529s, and now rolling it into Roth's, but on the other hand, $650K is a significant chunk of change to wrap up in an account where non-qualified withdrawals are penalized.

Anyway, I'm not exactly asking "what should I do" because I realize this is about personal values more than anything else, but I am curious - how have other people processed making this decision?
Planning for your children's education is a significant financial decision and you're right that it involves personal values as much as it does financial strategy. Here are a few strategies to consider:

1. **Balanced Approach**: Instead of fully funding the 529 plan for the projected cost of a private college, you could aim to save enough to cover the cost of a public university. This provides a base level of support. If your children decide to attend a more expensive school, they could supplement your support with scholarships, grants, work-study, or loans.

2. **Flexible Saving**: Consider saving in accounts that provide more flexibility. While 529 plans offer tax advantages for education expenses, they impose penalties for non-qualified withdrawals. A Roth IRA, on the other hand, can be used both for retirement and education expenses. Contributions can be withdrawn at any time without tax or penalty, and earnings can be withdrawn tax-free for education expenses.

3. **Encourage Independence**: Encourage your children to take ownership of their education. They can contribute to their 529 plan from part-time jobs, apply for scholarships, or choose a more affordable school. This can instill a sense of responsibility and help them appreciate their education more.

4. **Consider Post-Graduate Studies**: If you're concerned about over-saving, remember that 529 plans can be used for post-graduate studies. If your children decide to pursue further education, having funds set aside can be a big help.

5. **Transfer Funds**: Unused money in a 529 plan can be transferred to another beneficiary. If one child does not use all the money, it can be used for the other child or even for a future grandchild.

6. **Invest in Your Retirement**: It's often said that you can borrow for college, but you can't borrow for retirement. If you're already maxing out your retirement accounts and have extra to save, you might consider putting more into a taxable brokerage account. This gives you more flexibility and can provide a safety net for unforeseen expenses.

Remember, everyone's situation is unique. It's also a good idea to discuss your plans with a financial advisor who can provide personalized advice based on your circumstances and goals.
### Human
I'm curious how folks here process saving for college and balancing out giving children options/risks of over-saving/valuing private colleges.  My partner and I are fortunate to have a good, steady income and are currently maxing out our tax-protected retirement accounts.  Both of us were also lucky enough to graduate college without any significant debt (one of us did four years at a private college, the other did 2 years private/2 years public) thanks to parental support.  On one hand, we want to give our children the same opportunities but on the other hand, looking at projected costs it's hard to fathom that a private school is providing adequate value for the cost difference.

I've put together a projection in excel to help us plan for our 529.  If our kids follow the standard timeline (i.e. no gap years), they'd be entering school in Fall of '29 and Fall of '31.  

By my projections the future value for four years of private school would be around $440K (1st child) and $465K (2nd child) while public school would be around $160K/$170K.  If we were to fully fund each child's 529 to plan for private school and they attended public school instead, each of the 529s would be left with over $325K after graduation.

Obviously there are options for that leftover money including graduate school, rolling it over into their own children's (or other relative's) 529s, and now rolling it into Roth's, but on the other hand, $650K is a significant chunk of change to wrap up in an account where non-qualified withdrawals are penalized.

Anyway, I'm not exactly asking "what should I do" because I realize this is about personal values more than anything else, but I am curious - how have other people processed making this decision?

### Assistant
Planning for your children's education is a significant financial decision and you're right that it involves personal values as much as it does financial strategy. Here are a few strategies to consider:

1. **Balanced Approach**: Instead of fully funding the 529 plan for the projected cost of a private college, you could aim to save enough to cover the cost of a public university. This provides a base level of support. If your children decide to attend a more expensive school, they could supplement your support with scholarships, grants, work-study, or loans.

2. **Flexible Saving**: Consider saving in accounts that provide more flexibility. While 529 plans offer tax advantages for education expenses, they impose penalties for non-qualified withdrawals. A Roth IRA, on the other hand, can be used both for retirement and education expenses. Contributions can be withdrawn at any time without tax or penalty, and earnings can be withdrawn tax-free for education expenses.

3. **Encourage Independence**: Encourage your children to take ownership of their education. They can contribute to their 529 plan from part-time jobs, apply for scholarships, or choose a more affordable school. This can instill a sense of responsibility and help them appreciate their education more.

4. **Consider Post-Graduate Studies**: If you're concerned about over-saving, remember that 529 plans can be used for post-graduate studies. If your children decide to pursue further education, having funds set aside can be a big help.

5. **Transfer Funds**: Unused money in a 529 plan can be transferred to another beneficiary. If one child does not use all the money, it can be used for the other child or even for a future grandchild.

6. **Invest in Your Retirement**: It's often said that you can borrow for college, but you can't borrow for retirement. If you're already maxing out your retirement accounts and have extra to save, you might consider putting more into a taxable brokerage account. This gives you more flexibility and can provide a safety net for unforeseen expenses.

Remember, everyone's situation is unique. It's also a good idea to discuss your plans with a financial advisor who can provide personalized advice based on your circumstances and goals.<eos_token>