[‎‎Diana]

How do you all pay your Catholic school tuition? We need to pay $12K in a single transaction for the next school year, or pay it quarterly and it will cost us $560 in credit card and school fees for doing a payment plan.

We can pay for it out right, but I don’t like the feeling.

I’d rather hang on to to our money and pay quarterly, but by principle I also don’t want to enrich others by paying fees.

What would you do? The money is earning 4.2% in a Money Market account.

[Sophie]

Credit card SUB with a period of 0% APR. Amex Biz Gold would be a great option.

[Carrie]

Rip the bandaid off and pay it all at once. One less thing to think about during the school year.

[Dara]

Wouldn’t it make the most sense to deposit the tuition into a 529, si you get the income tax break and then immediately pay the school? Whether it be annually or quarterly etc.

Then your taxes would be lowered.

If you want it to grow pay the school monthly (as long as the 529 funds you invest in don’t dip)

[Jessica]

I refuse to pay fees on top of tuition if possible. ACH transfer and pay up front if possible.

[Eva]

So, you’d be saving $55-100 extra dollars by paying out right? I can’t speak to where you are financially, but if that’s all you’ll end up saving and not paying in full lets you sleep at night let this be your permission to not overthink and do the quarterly payments.

However, if you see kid/s needing the school with decent certainty then pay up front mainly because it’s one less thing to think about once done.

For me that offers better sleep that thinking about owing and maybe missing a payment.

In either scenario I would use my citi double cash card to get 2% back at minimum. Maybe if I did lump sum open a new card to get a bonus.

[Chris]

Don’t forget, the interest you earn on that cash is taxable at your highest tax bracket and the savings by paying up front is taxable free.

I’d pay upfront to pay less total.

[Michelle]

Honestly wouldn’t even bother trying to find a way to make more by keeping it in accounts for installments.

I’d just pay it and be done. Not worth my time

[Peter]

You sign up for the credit card with fat sign-ups bonus, buy Gift of College physical cards ($500 each, about 1% fee), put them in 529 account and pay your tuition from there.

This is the most hassle and most reward path. Is it worth the trouble – up to you.

[Kayla]

We pay private school tuition in 2 payments per year to avoid the monthly processing fee. It’s only $50, but I try to avoid fees whenever possible.

We have a sinking fund that we contribute to monthly for this purpose (as well as property taxes).

Then the payments can be deducted when necessary.

[Dillon]

Any processing fees if you pay it all at once with a credit card?
If so, how much?

Able to split it across multiple cards?

I’d lean towards all at once if you can swing it but try to get 1-3 sign up bonuses depending on the fees.

[Amanda]

In your case I would pay all at once. Our school does 10 monthly payments or all upfront. No additional fees for either so we do the 10 payments.

With 3 kids in private school it can get pricey.

[Dan]

I paid nearly 1mil in total for my 3 kids from K all the way to undergrad. If I had kids now I would think hard about private school.

The catholic school system went downhill during the years my kids were there.

Good luck to you…

[Cathie]

If you have the money and won’t be in a pinch by paying it all in one payment/ pay it and you don’t have to think about it for the rest of the year

[Nora]

I pay it all upfront so I’m just done with it and work on replenishing the funds throughout the year. There’s also a small discount to pay annually.

Worth an ask.

[Author]

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