financing children's college?

[RickLab]

A poll option missing: investing in college fund already.

I agree - I have been paying a little each month to the Florida pre-paid college fund since my Sons were born. My oldest starts next month. There will still be fees, etc. but all the tuition is paid for before he gets there.

[Kristofor]

What about high school education? My wife took two of the grandchildren to register for the upcoming school year (public school) and it she paid over $300 in fees for them. So much for the myth of free public education. That does not even include the expenses for my grandson who is on the varsity football team. That will be another $500 or so.

There is no such thing as free. When you're dealing with the government that's doubly true, either you or someone else IS paying for that education.

I'm not sure what it's like in Alabama, but around here the high performing suburban schools spend ~$7-9,000/year per student. The much poorer performing core cities spend upwards of $12,000 (yes, they have many extra issues to deal with, yes they are forced to significantly overspend on special needs, ESL, homeless, gang-involved, and other types of difficult students)



On the college front. My first baby is due in December and I'm already saving for him. I will cover the cost of the UofMN (I hope they don't have many more of the %28 yearly increases), but if he wants to go out of state or to a private college he better be good at sports, super smart, willing to work or take out loans.

I paid my way through college (over a long period of time) and I very much recommend just biting the bullet and getting it done in 4 or 5 years (depending on the program and if it's a 4 or 5 year degree). If the parents can cover the tab great, if not, work-study + scholarships + grants + loans or whatever it takes!

[TheRic]

I feel the kid should pay for their education. Mom & Dad can help some, but put a limit on it!! I saw it all too often where the kids that had all the money didn't care about wasting it here and there. Don't LOAN the kids money, it's not a LOAN, you are giving them the money. They have no intention of paying it back.


When I went to school, I paid for everything myself. Filled out all the grants, student loans, scholarships papers I could get my hands on. Also worked 20 - 30 hours a week. My parents did give me the use of an old junky car, and cover the car insurance. But that was it.

I learned something that they don't teach at college: I learned (mostly already knew) the value of money, to appreciate what you already have, to shop around, to find out were to get the best bang for my buck, How to budget for up coming expenses, etc. If I got some food I didn't like, I still ate it, didn't have the money to get something different. Shopped at Goodwill / Salvation Army many of times.

It wasn't all bad, I ate steak (every now and then), partied, went out with friends, visited different places, etc. But I still knew that if I wanted to eat that steak on Sunday watching the game I had to save my money to buy it.

[DaveS]

A poll option missing: investing in college fund already.

I believe this is the same as "I'd give them the money if I could"... just earlier vs. later - cry a little for a long time, vs. cry a lot for a short time

In addition, what if you get to the end, and what you saved is not nearly enough? (e.g. you saved for state school, they wish to go to an expensive private school)

[AAJIII]

college

This is a subject near and dear to my heart. my youngest daughter just completed grad school and has landed a job as a teacher.

As parents, I feel that it is our responsibility to pay for our childrens education and that means start saving early and instill in that child that there is a budget for college.

There are many state universities that have excellent programs and are well respected. These need to be considered as first choices.

You also need to make it clear to you child that good grades are a requirement for the parents footing the bill or the free ride is over.

Al

[JR]

I'd have to see the value in the major as relative to the schools strength.

Ok, so my father and his three brothers went to prep school in Boston, virtually assuring entry into Harvard. Dad and his older brother dutifully went there. The third in line sensibly chose MIT to pursue his BSEE.

Grammy never got over the fact that he went to "Tech", as she called it.

JR

[Black wallnut]

I'm with The Rick on this! Although I can not articulate all of the reasons I have for this a big one is I believe that once a person reaches 18 years of age or graduates from high school their future is entirely up to them. IMHO the popular culture of parents being responsible for their childrens early adulthood financial decicsions is one of the things that keeps pushing up the costs of education and at the same time watering down the actual learning. No one is entitled to an education rather everyoine should be entitled to the opportunity. At todays high costs many do not have the opportunity. if those receiving the benifit of an education were the ones that were paying for it then perhaps supply and demand would be considered in the costs.

[Bruce Cohen]

Wait for the Grandparents to die and then finance their education with the inheritance.

[prlundberg]

We'll have money available, but we will not give them a free ride.

I've seen many kids who end up with expensive degrees that get them nowhere. I think a little pressure to pay their way is a good thing.

[LCHIEN]

been rereading the replies here and havea few add'l comments.

One I see a lot of poeple stating that the kids had better contribute large portion to motivate that they'd better learn something rather than play/party.

I can see that point, but I brought up my kids to value an education; I always told them I'd never pay them for grades. Good grades sould be a personal goal and self-satisfying deal. Good grades pay for themselves later in life. They should be more interested in the grades they make, sure I like it when they do well, but they're the ultimate beneficiary.

so i see and hear about kids that go to school and party, don't study hard, can't find their "field". Sometimes kids who did well in hih school. I guess that maybe they were't prepared right? Out of sight of paental supervision/pressure, they lost their way.

One thing my father emphasized to me was that college was a time to learn, that working your way thru college would make it harder to learn. He also emphasized to me that college was spposed to be the best time of your life- meet new people, join activities at the college level, spend time taking advantage of the college atmosphere. After you work, have a family, you'll never be free like that again. The thing is to be responsible. You have to have responsibility to yourself, but very few others at that point in life. College is an opportunity. You should make the most of it.

[leehljp]

My three girls got grants, loans, scholarships and I gave them most of their monthly spending, needs and food money plus a good (but used) car.

Living overseas in a high cost area, most grants and loans don't allow for the COLA (cost of living adjustment) such as gas being $3.00 a gallon 20 years ago here. That cut back on a lot of grants and loans. Being in the ministry too didn't allow for a lot of extra, but they got a quality education. One is working on a double Masters now. The other two are thinking about it.

I would have paid it all if I could have, but I know the value of working for it yourself. We never let them go without when they were in a tight spot.

Differences between the three: one daughter would take anything we give, but was always appreciative and would always reciprocate in some way. Another would take but be very hesitant and we would have to "sense" when she was in need because she wouldn't tell us; and the last would refuse money as long as possible and then some. She loved her independence and would rather do without than ask. We never required anything back, never held it over their heads or even reminded them when we gave monies, things or signed loans.

We love all three equally and respect their differences. They loved working for their education and it helped them learn more about themselves in difficult situations.

[dkerfoot]

Sorry for the long winded post....

I guess I am somewhere in the middle on this. I personally completed my B.S. while on active duty in the Navy. I reenlisted in order to get to shore duty so that I could do it. The Navy paid 75% of the tuition while I scraped up the remainder while trying keep my wife and (at the time) 2 kids fed and sheltered.

It was a difficult way to do it. But, there is no motivator quite as powerful as hating where you are at. I desperately wanted to stop going to sea and I knew that a degree would be needed to keep hearth and home together should I get out.

So, I worked like mad, took advantage of the free CLEP and DANTES tests available to the military and earned a B.S. in just over 2 years with a 4.0 GPA and no debt. Later, an employer paid for me to complete a master's degree. At that point, my prime motivation was not wanting to pass up a valuable opportunity. I actually made money from my studies because I had paid into the Navy's GI Bill and was able to pocket it, since my job paid the tuition. This was hugely helpful since at that point I was a single-dad with sole custody of three kids and of course, zero child-support.

My employer required a grade of 3.0 in each class or they wouldn't pay for it. My GPA was something like 3.2...

So, I agree with and have lived out the "Ya gotta earn it to appreciate it" school of thought. On the other hand it is obvious from Loring that you can instill in children a deep and reverent appreciation for education. But, I think that only works if you yourself have that same appreciation. I think this helps explain the difference in the GPAs among our different cultures here in the US. I'd guess that our parents have more to do with our own attitude towards education than most of us realize.

So, how do I approach it with my kids? My oldest son is 22 and considers himself a missionary. He has travelled through Asia, and is currently living at home, working in a factory and self-funding himself through a church sponsored 2-year training program. He has something close to $20,000 in savings. He just bought a car for himself to use occasionally, but mostly for his sister to use for school. At some point, I expect he will earn a BA. He is still three years younger than when I first started college.

My daughter just graduated HS and is enrolled in a community college (a tremendous value). She plans to complete 2 years and transfer to a 4 year school. She just paid for the first semester out of her own earnings and has a state merit scholarship that will pay roughly half of her tuition the first 2 years and an additional $2000 when she transfers. My plan is to have her pay her own way the first two years and significantly contribute towards the 3rd and 4th year. She doesn't know it, but I do have some money put aside to help the 2nd half. She'll probably have to take a loan out as well, but my hope is she will have less than $5k in debt when she graduates. My plan for my other two kids will evolve as they do. They both have the potential to earn scholarship money, but that will depend on them.

What I have promised all my kids is that they will have the opportunity to go to college if they choose. The where, what and how depends on their grades, desires and ambitions...

[smorris]

Both our boys are in college now, one is a senior the other a sophmore, both in private colleges.

We explained to them that we put them through 13 years of very expensive private schools which cost us more than their college education ever would unless they went for a phd. Thus we would pay 10% of their undergrad and co sign any loans. They got most of it through scholarships and grants so it isn't as bad as it sounds.

Had they chosen the local state university they would have had a free ride from the state but they made their own decision on where to go.

[kmk]

We have a 3 year old boy and 1 year old girl. I opened 529 plans for them awhile ago and have been investing $100 per month. The funds are invested in aggressive portfolio. It grew about 6.5% so far. I'm hoping to increase the investment in the future. Hopefully, when they are ready to go college (~2022!!!), it should cover atleast half of the education cost!

[beerdavis]

I have invested in a Coverdale account for about 1200 a year. My daughter is 3 now. But I am really hoping Georgia will still have the Hope Scholarship when she is ready to go to school, but the way that it has been wittled away in the last ten years since its inception I do not think that is going to happen.