Not at that annual wage. That's about what my mother makes and she's still paying off car loans, and my sisters and I all have students loans/worked to pay for school. It would take a lot of saving to be able to pay for either of those right out of pocket.
Also of note, at that wage, the kids in this family won't be able to qualify for federal grants unless there are other factors (they marry young or end up becoming a teen parent, both of which move them into "independent student" status)
ETA2: Though the grant thing miiiiiiight take into account cost of living, and California has a much higher cost of living than the state I grew up in (Arizona).
A lot depends on what kind of expenses the family has. How many kids? No mortgage is a help, though (and yes, there's maintenance and property taxes to consider that eat away at the income). Car payments. Income tax. clothes & food--and kids can go through the latter quickly when they're growing. Teens bring on new expenses, mostly around cars--insurance rates will be higher. Computers/internet. Cell phones. Even with all that, I'd put your family in middle class
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It's worth bearing in mind that the costs of attending college in the United States don't stop at tuition. In addition to that $16K/yr in tuition for UC Berkeley, you have room and board, books, class fees, etc. etc. etc. Collegedata.com tells me that the actual cost of attending Berkeley for a year on in-state tuition is closer to $33K, so you're talking over $120K for a four-year degree, presuming he actually finishes in four years. That is a shit-ton of money to save up, and unless Dad has been putting away everything he can since his son was born and invested it wisely to get a good return, then the odds of him having saved up enough for a full four years at Berkeley without loans on that salary is practically nil. It's less expensive to attend one of the California State colleges -- but even then, a year at Cal State Fullerton is still roughly $23K all told
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You also have to factor in grants and scholarships, which may take a lot of the pressure off.
Personally, I'd be ecstatic beyond words to ever have had an income of $98,000 a year, but I never lived in California, either.
You can check out cost of living, though, at sites like http://money.cnn.com/calculator/pf/cost-of-living/ or http://www.bestplaces.net/col/. Some places in California are much less expensive to live in than others, and that will make a difference too. If they've managed to pay off the house, they've probably also managed to pay off the cars.
I would think where in California might make a difference. My parents always bought used cars and paid cash for them. Even now the past couple of cars that my mom and her boyfriend have bought, they paid cash for them, and bought new. I think they did this by essentially making a car payment in advance for the new car, and they only bought cars every 10 years or so.
I think a lot depends on what they choose to spend money on, too. If they forgo having cable tv, don't buy the latest model cars and gadgets, etc., they might be able to afford more savings. If they have a paid-off house, perhaps there was some money inherited for college savings as well? Also, the cost of college will vary substantially based on what kind of school it is...state or private. How many children? What are the ages? Daycare for small kids is pretty expensive, but if they are in school it will cut down on the cost.
The high cost of living parts of CA are pretty darn high, and this includes some smallish towns.
But if you're in the sticks? With no mortgage, and because you're in the sticks the house isn't going to run you a ton in real estate taxes? That's really quite comfortable - with even a vestige of financial sense, buying cars cash and sending the kid to college without loans should be entirely doable. And decent vacations, and that sort of thing.
Just FYI, the term you're looking for is either Cali or NorCal. You can also just call the state CA, or the region around San Francisco "the Bay", but never NorCali.
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Also of note, at that wage, the kids in this family won't be able to qualify for federal grants unless there are other factors (they marry young or end up becoming a teen parent, both of which move them into "independent student" status)
ETA2: Though the grant thing miiiiiiight take into account cost of living, and California has a much higher cost of living than the state I grew up in (Arizona).
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It's a father-and-son family, with no outrageous spendings beyond the necessary. Does saving up for, say, Berkeley ($16k/year) sound unbelievable?
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Personally, I'd be ecstatic beyond words to ever have had an income of $98,000 a year, but I never lived in California, either.
You can check out cost of living, though, at sites like http://money.cnn.com/calculator/pf/cost-of-living/ or http://www.bestplaces.net/col/. Some places in California are much less expensive to live in than others, and that will make a difference too. If they've managed to pay off the house, they've probably also managed to pay off the cars.
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My parents always bought used cars and paid cash for them. Even now the past couple of cars that my mom and her boyfriend have bought, they paid cash for them, and bought new. I think they did this by essentially making a car payment in advance for the new car, and they only bought cars every 10 years or so.
I think a lot depends on what they choose to spend money on, too. If they forgo having cable tv, don't buy the latest model cars and gadgets, etc., they might be able to afford more savings.
If they have a paid-off house, perhaps there was some money inherited for college savings as well? Also, the cost of college will vary substantially based on what kind of school it is...state or private.
How many children? What are the ages? Daycare for small kids is pretty expensive, but if they are in school it will cut down on the cost.
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The high cost of living parts of CA are pretty darn high, and this includes some smallish towns.
But if you're in the sticks? With no mortgage, and because you're in the sticks the house isn't going to run you a ton in real estate taxes? That's really quite comfortable - with even a vestige of financial sense, buying cars cash and sending the kid to college without loans should be entirely doable. And decent vacations, and that sort of thing.
This might be useful: http://www.wealthinformatics.com/2011/07/25/cost-of-living-in-california/
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Thanks a lot for the link!
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