Is moving worth saving education costs?
Alright all you financial gurus here is the question of the day. Currently my wife works in a school system in a different county than we live. We live right on the border but if we want our kids to go to school with my wife then we have to pay out of district tuition for our kids to go to a public school. We would get a discounted rate but it would still be $1,800 per year or about $150 per month to send one child there.
We have two children ages 3 and 3 months so we are looking at 12 years of public education for each of our children. So you see the decision I’m face with. At first thought it doesn’t seem to be worth the trouble and moving expenses to pack up our bags and move to another county, but after doing some quick math I realize I have to think deeper about the decision.
If we stay were we are at and start paying the tuition costs in a couple of years we will spend a total of about $43,000 in education costs over the course of their public education. Sounds like a lot of money to me, but wait it gets even bigger.
Let’s assume we decide to move and avoid the tuition costs. I’m going to assume we make a small profit on our current home (should be easy to do) and move into a similar priced home. We would finance about $210,000 over a 30 year fixed rate mortgage at 6.5%. The payment would be about $1,325 per month. Since we would be paying the $150 per month to tuition I’m going to apply that money to our mortgage payment as extra principal payments for five years, this is when my second child would start school so that amount would double to $300 per month. The $300 would continue until my 1st daughter graduates high school and then $150 extra would be applied until my 2nd daughter graduates. Doing this math I would pay off my house 8 and 1/2 years sooner and save just over $92,000. I would of course have to subtract closing costs and moving costs from the profit so about $8,000. After this I would still save over $84,000 from the move?
Sounds tempting to me but I would like to hear your opinions.



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