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I've said many times before that I don't plan on paying for my children's college expenses. I had to pay for my own through student loans, and there's a good chance if my children want to go to college they'll have to pay for their own. That doesn't mean I won't try to help them if I can. I want the best for my children, and I'll try to help them along the way. But, I will let them know up front the importance of studying hard and getting good grades, so they can get scholarships and other financial aid. With tuition costs rising at an alarming rate it's estimated that a 4 year degree from a public institution will set you back $114,694 in the year 2016. My daughter will be 6 years old. Can you imagine the cost of college in 2028? I'd rather not.
As parents here are a couple things I think we need to understand.
1. If we choose to help our children with college expenses, we need to let them know up front that it's a shared responsibility. Let them know early on how much you will be willing to pay. Some parents may only be able to pay for books and food, others may pay for housing as well. Look at your financial situation and plan accordingly. Once you've let your children know what you will be paying for, it's up to them to figure out how to pay for the rest. This could mean a summer job, working during school, or working hard through school to earn a scholarship.
2. Get started as early as possible. Take advantage of compound interest that comes from savings accounts, cd's, bonds, and other types of investment accounts. Encourage your family to give your son or daughter money for their birthday and other holidays. Chances are they already have more toys and clothes than they know what to do with.
I'm curious as to how many parents pay for their kids to go to college. I've placed a poll in the right side bar, so you can tell how you either have already or plan to pay for your kids college.
As parents here are a couple things I think we need to understand.
1. If we choose to help our children with college expenses, we need to let them know up front that it's a shared responsibility. Let them know early on how much you will be willing to pay. Some parents may only be able to pay for books and food, others may pay for housing as well. Look at your financial situation and plan accordingly. Once you've let your children know what you will be paying for, it's up to them to figure out how to pay for the rest. This could mean a summer job, working during school, or working hard through school to earn a scholarship.
2. Get started as early as possible. Take advantage of compound interest that comes from savings accounts, cd's, bonds, and other types of investment accounts. Encourage your family to give your son or daughter money for their birthday and other holidays. Chances are they already have more toys and clothes than they know what to do with.
I'm curious as to how many parents pay for their kids to go to college. I've placed a poll in the right side bar, so you can tell how you either have already or plan to pay for your kids college.
2 comments:
this is a very controversial question more because it assumes there is one right answer (and i believe there is not). it depends on the family's culture/values/tradition. typically, however it was done in the past (who pays for what) will be how it happens in the next generation. the issue can certainly come up when two parents came from different backgrounds as it did for me and my wife. my parents thankfully paid for both my undergrad (private school) and grad school education. i would call them upper middle-class but extraordinary savers (very frugal) and thus had the ability to do so. i don't think i will ever be able to repay them for what they did (giving me a debt-free beginning). my wife had to get grants and small loans in addition to some family help. i would agree that having the child pay for some of the expense would nurture responsibility and help them appreciate their education more. but with the cost of college now, it can be a huge burden on them to have to pay for all of it.
JC, thanks for the great post. I think you made a lot of very good points.
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