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When we left off we were saving for retirement, now we're saving for our kids to go to college. I was the first one in my family to graduate college, and I'm really proud of that. However, my parents didn't have the money to pay for it, and I'm not even sure they should. This brings us to Step #5.
Step #5 - The Kids College Fund
Our buddy Dave at this point says once we've got every thing in our life taken care of, we should start thinking about the kids. The majority of kids these days are going to go to college, and tuition isn't getting any cheaper. So, he suggests setting up some kind of college fund for the little boogers. His recommendation is an ESA (Education Savings Account), which you can contribute $2,000 a year to tax free. Not too shabby.
While it would've been great if my parents had the money to put me through college, I don't think parents should have to. It seems that kids are taking longer and longer to grow up, and when we continue to provide for their every need, why would they? I don't plan on paying for my kids to go to college. Now, before you report me, let me explain. I plan on encouraging my kids to get good grades, so they can get their college paid for through scholarships and grants. If they don't get good grades, then they'll be having to borrow from uncle Sam if they want to go to college. It takes the responsibility off me, and places it on them. Also, who's to say they'll even want to go to college. There's plenty of other options out there, that don't involve a 4 year degree.
The amount of parents who pay for their kids college really surprises me. I'm not saying anything's wrong with paying for you kids to go to school, if you want to do that. But, I don't think it should be expected. And I don't think there's anything wrong with expecting your children to pay for it themselves. I think this is a choice that should be left up to you. What do you think?
Step #5 - The Kids College Fund
Our buddy Dave at this point says once we've got every thing in our life taken care of, we should start thinking about the kids. The majority of kids these days are going to go to college, and tuition isn't getting any cheaper. So, he suggests setting up some kind of college fund for the little boogers. His recommendation is an ESA (Education Savings Account), which you can contribute $2,000 a year to tax free. Not too shabby.
While it would've been great if my parents had the money to put me through college, I don't think parents should have to. It seems that kids are taking longer and longer to grow up, and when we continue to provide for their every need, why would they? I don't plan on paying for my kids to go to college. Now, before you report me, let me explain. I plan on encouraging my kids to get good grades, so they can get their college paid for through scholarships and grants. If they don't get good grades, then they'll be having to borrow from uncle Sam if they want to go to college. It takes the responsibility off me, and places it on them. Also, who's to say they'll even want to go to college. There's plenty of other options out there, that don't involve a 4 year degree.
The amount of parents who pay for their kids college really surprises me. I'm not saying anything's wrong with paying for you kids to go to school, if you want to do that. But, I don't think it should be expected. And I don't think there's anything wrong with expecting your children to pay for it themselves. I think this is a choice that should be left up to you. What do you think?
2 comments:
I believe that you are using your experience to overshadowed your beliefs. Parents should encourage their children and also help to give them a good education financially. I understand that your mother didn't assist you but in this case she couldn't afford it. You on the other hand can help your children and so why not plan for it. Would you want your children to be in debt than having financial freedom where they can help you? Will Uncle Sam always be there? Consider these and then see if what you have been saying is logical planning for your kids future.
You do make some good points. However, I still stand behind my belief that parents shouldn't feel that they have to pay for their children to go to college.
Children can always get scholarships, or they can work their way through college. Kids do it all the time. There's other options that don't rely on going into debt.
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