Saving for child's university

[RetireJapan]

My three stepdaughters went to private uni (just over 1m a year in fees) while living at home. They all borrowed the max available from 奨学金 (called 'scholarship' sometimes but actually just student loans) which didn't quite cover the fees. We made up the difference but it wasn't all that much more than when they were going to high school.

All of them finished on time.

[MyTime]

Yes, overall cost--for living away from home. As noted above, you could get by for much less if your child went to a public uni while living at home. There would still be some extra expenses over tuition, but you'd have those anywhere else, too.

Thanks for the detailed reply!
(The first thought I had reading it is that—financially speaking—I’m kind of glad we only have *one* daughter!)

In retrospect, it was money well spent. Both were able to choose what they wanted on their own, neither had a change of heart (major) halfway thru. Both are employed and now independent (25/29).

Of that there can be no doubt—congrats on raising two bright daughters.

[MyTime]

My three stepdaughters went to private uni (just over 1m a year in fees) while living at home. They all borrowed the max available from 奨学金 (called 'scholarship' sometimes but actually just student loans) which didn't quite cover the fees. We made up the difference but it wasn't all that much more than when they were going to high school.

All of them finished on time.

So it seems like a case of different people, different situations, considerably different costs.
I guess the means you have at your disposal is also going to play a factor in the options open to you.

[DragonAsh]

Japan is certainly considerably cheaper than the US when it comes to uni costs. We have Junior Nisa for both our kids that will go towards their uni fees, if they go to uni - by the time they're uni age, I wouldn't be surprised if we're all working for the robot overlords or something. My kids will be expected to work during their uni years as well - I did, and somehow miraculously survived.

-she made it into applied chemistry at 阪大.

Congrats! That's my alma mater. It was a good school.
My 'best-case nightmare scenario' involves my kids somehow getting accepted into an uber-expensive US school like Harvard or something.

[captainspoke]

...
My 'best-case nightmare scenario' involves my kids somehow getting accepted into an uber-expensive US school like Harvard or something.

I'm not sure if it includes harvard, but people here should be aware that grad school in the US, if done right, can pay for itself. Our younger one graduated here 18 months ago, and tho she applied, she wasn't happy with the one grad school acceptance she got. She was changing majors from one thing to another (within sciences, but different), and so was not a very appealing candidate to acceptance committees. So she's been working at a uni lab in evanston (where she had done an unpaid internship as a part of her year abroad), something about RNA, same thing a grad student would be doing as an RA, but full time, instead of mixing lab work and classes.

She's applying now for grad programs starting aug-sept next year, and with a couple years of work experience behind her (and hopefully some good recs), she should be okay.

The point: everything she's applying to comes with work and/or a stipend of some kind so that the grad program is basically free. (And I say "Some of those west coast cities have a high cost of living," and she says "The pay/stipend is higher for those places.") This is not unique to us, there were a couple (fully japanese) faculty at my uni whose kids had done that same.

Bottom line: get your kid thru school here, and into a well-funded grad program in the US. Think STEM.

[deepdishj]

Hello everyone,

I'd like to go back to the OP if I could; is the Jr. NISA the best option for university tuition?
My wife has brought home some forms from JA about their education fund. It claims a return of 5.2% over 18 years.
Does anyone have any experience with other savings program? Thank you.

[RetireJapan]

I'd like to go back to the OP if I could; is the Jr. NISA the best option for university tuition?
My wife has brought home some forms from JA about their education fund. It claims a return of 5.2% over 18 years.
Does anyone have any experience with other savings program? Thank you.

With a Junior NISA account, you will get the market return, whatever it ends up being.

Is the JA 5.2% a year guaranteed?
Or 5.2% return over 18 years guaranteed?

If the latter, it is slightly better than cash but not much. You could always split the difference: put half into the guaranteed JA fund, and half into J-NISA stock funds...

[deepdishj]

Is the JA 5.2% a year guaranteed?
Or 5.2% return over 18 years guaranteed?

If the latter, it is slightly better than cash but not much. You could always split the difference: put half into the guaranteed JA fund, and half into J-NISA stock funds...

It's for the 18 year period.
Yea, I realize the NISA is not specifically dedicated towards an education fund. That's more what I was asking. I know that 'back home' there's a dedicated educational savings program. Just wondering if there were any good options here that the members have experience with.

[DragonAsh]

Sorry for my ignorance, what is this JA fund you're referring to?
Is it some sort of insurance product with a payout if you die etc?

[deepdishj]

Sorry for my ignorance, what is this JA fund you're referring to?

It's called こども共済 and this particular fund is the 教育資金.