Saving speculation

Yes, it is 2:52 a.m.  I have been up since a little after 1:00 a.m.  First it was the baby to nurse.  Then it was the toddler to be rocked/comforted (he's been going through an "I'm scared" phase.  Then it was the baby, unable to settle down and nursed a little bit more.  Then it was the baby again to burp and spit up.  Then it was the toddler again to put Aquafor on his nose (a routine from when he has a cold that he has decided is an every night and, apparently middle-of-the-night, need).


So I'm very wide awake.  And thinking.  Because that's how I roll in the wee hours of the morning.


Now that we have our wills done, I am turning my thoughts to saving for the kids' college education, and I feel the need to get some insight from parenting friends (so pay attention those of you who read this rag!).


Let me say here that whenever I blog about finances, I have 2 main thoughts--First, D and I are very, very fortunate that he makes a good salary.  Second, I probably come off as a "richie rich" of some sort because he makes a good salary, but I really try to be very frugal and under no circumstances do I consider myself or feel wealthy, even though in the grand scheme of things and compared to millions of people throughout the world, I am.  


Each of the kids has a 529 plan, and our routine has been to fund each child's plan with $10,000 in the first year of life.  Still working on that for Baby M, but we should be there by the end of the year (barring unforeseen circumstances).  My parents have been very generous to give money for the kids' plans as well.  


But beyond that, we haven't instituted any kind of routine monthly savings, primarily because all of our beans have been going into funding that initial chunk that we front-load.  


With the prospect of getting M's funded by year's end, and knowing that there will be no more babies, I am wondering how to save from here on out.


Like, should I do an automatic sweep of $50 a month into their respective 529 accounts?  Or should I put $50 a month into their savings accounts at the bank and then when I've got a sizable chunk ($300-400) write a check to the fund (including piggy bank money as well)?  




Or is $50 a month enough?  Should I hit it harder, if the budget allows?  
Or am I trying too hard and can slacken off a bit to $25 a month per kid?


Instead of making an extra house payment a year (as I had decided to do in order to pay off the mortgage early), should I take that money and divide it by thirds to put into the kids' 529 plans?  My gut tells me to do the mortgage simply because if we have the house paid off by the time the kids go to college that frees up a nice chunk of change every month for college expenses.  


And all of this thinking about saving makes me wonder how other families save in general.  


We have a very loose budget that goes as follows upon payday:
1st paycheck of the month:  
1. Save approximately 63% of it (which is 32% of our monthly income) in our various accounts (for taxes, home improvement, medical savings, fun, etc).
2. Pay any bills with what is left.


2nd paycheck of the month:
1. Pay mortgage.
2. Pay life insurance
3. Pay any other bills


Anything left is used for groceries, gas, and other sundry items.


This system seems to work ok, since we pay ourselves first, pay bills next, and then whatever is left is used for whatever we need to buy.  And so if we don't have a whole lot left, we just don't buy a whole lot of extra beyond groceries and gas.  


But it makes me curious as to how much other families save for things like eating out or clothes or entertainment.  Do they budget $40 a month for eating out?  Or $60?  How much do they budget for clothing per month or per year?  Is their budget specific, with amounts budgeted for haircuts, school lunches?


How do families save or budget for future expenses like orthodontia?  (I'm already starting to stew over this one.)  


Right now I've got probably too many bank accounts:  Taxes/Insurance/Repairs account, Medical Savings account (for when our FSA money runs out), Home Improvement account, Fun account (which probably should be renamed Vacation account, but it also pays for summer camp and My Gym classes, etc), Christmas Fund account.  Plus the checking account.  


So my 3 friends who read my blog--would you like to share some saving/budgeting ideas you have?  Email me privately if you prefer.


I truly get my jollies thinking about bigger and better ways to save.