That is a tough spot to be in.
yes, college costs are rising, and if you wait until you have enough in savings for her to go to college on, you may never remodel your house.
she is 8 years old, so why not set up a savings account, or some higher yield stuff like cds, that are still secure, and put in x amount into and let the compound interest pay for her college education.
with the rest of it, you can remodel your home.
also, you can make the argument that when you remodel the home and when the housing market turns around, it will be a good investment in the house. if you were to sell it right now, you wouldn't be able to get as much for it, because everything is so out of date.


