Jump to content

Paying for your child's education...


lostnscared

Recommended Posts

This has come up in other threads, and I'm interested in hearing feedback. Do you believe that it's important that a parent pay for his/her child's college education? Is this something that you've done or would do? Is it "wrong" to make the child carry the burden of a student loan? Should a parent ALREADY have it figured out in the budget, prior to having children--how they plan to pay for their child's education?

Link to comment
  • Replies 201
  • Created
  • Last Reply

I think it's much more important to let the child know early on what you're going to do, than actually planning to pay for their college. Especially as they get into their teens, they need to know whether or not they should start saving on their own... I mean, telling them something like, "Go to college, don't worry about money, even though we can barely afford food" is unbearable pressure.

Link to comment

I firmly believe parents should try to pay for as much of their children's college education as they can. A college degree is becoming a basic necessity for survival. I don't think parents should have children if they can't afford their basic needs: housing, food, clothes, education etc. I put away money every month for my child's education and I have been doing that since he was born. Would I love a new car? Sure I would, but I couldn't justify driving around in a new car while I have no money put aside for my child's future. So I drive a cheap car - and I give up other sorts of things for myself, expensive clothes, expensive dinners etc. It makes me sick when I see people driving around in fancy cars, spending all sorts of money on themselves when they don't have a dime put away for their kids.

 

A decent 529 will earn a decent amount of tax free interest to pay for a good portion of college. But you have to put money into it every month from early on. Any little bit helps. People just have to learn to live without some luxuries.

Link to comment

As someone who had to pay back my entire student debt on my own and who now sees how far ahead my peers are who never had to pay back a cent, I would say yes--if a parent is able to pay for their child's education they should do that.

 

To put things in perspective, I was about ~60k in debt by the time I finished my BA. I was accepted into Master's programs but the mountain of debt was too intimidating for me to continue. I had friends who never had to worry a moment about the financial aspect of their education, and as a result they just had so much more mobility. They now have homes/cars/etc whereas I'm barely in a position to start working on those.

 

I wouldn't say a parent is obligated to provide this assistance, but the amount of help it will provide a child can't be emphasized enough. You literally save them 5-10 years of financial headache, if not more.

Link to comment

My parents paid 90% of my college education(the remaining 10% I took out in my OWN loans since I didn't have a job and wanted money for shopping, gas, and food, etc for two years of college). I was very grateful. I didn't feel as "concerned" about massive student debt when I graduated. But unfortunately my parents have been burdened with our student loan debts for the rest of their lives, and I do feel bad about that. I've always believed in the following financial principal: you pay 1/2 of a students tuition(if it's a STATE university), the child takes 1/4 out in loans, the other 1/4 the child must get on their own in savings, scholarships, work, etc. I've always figured that I'd put a good amount of money in a CD (250-350 a month for 2+ kids) for all 18 years. And give the child five options: they can either go to community college for two years and then transfer to a state school and *barely* have student loans, they can go to a state school for four years following the model I talked about above, they can decide to go to a private college but we would only pay 1/3 and they would end up taking out MORE loans, they could use the money to invest in their own business or start-up OR they can take the money and put it down for a house and go to vocational (trade school) or they can go to the military and keep the money into a CD for them to get when they start their own families.

I've always figured this would be fair. Because the student still has some sort of financial liability into their education. I do have a few friends who already have kids, and have just said "I guess they will have to get a scholarship"--a lot of it is because they themselves were raised NOT to value education and they are poor. I've always felt that as a parent I should at least pay for SOME of the education, but I also feel that a student should take advantage of their options. I've never been a proponent of paying 100% of a child's education. A) financially it would be difficult being the career choices I'm interested in. B) I want them to have their own "financial" interest in their education. C)I would like to be able to invest a little bit of money into retirement.

Link to comment

This is a debate DH and I have. I want my kids to go to uni/college, and I have been saving for it since shortly after they were born. I would like to be able to cover the whole tab, if I could, so they can afford to focus on their studies. Right now, my babysitter is working a midnight shift -full time- because her parents didn't save a dime...I wonder how well she will perform in school, when she has to choose between sleep or study time when the rest of her day is her full time job or her classes?

 

On the other hand, kids DO need to learn that the world won't be handed to them, and I am disinclined to pay for what amounts to a year-long party with a $30,000 cover charge....requiring them to have a job of some sort, keeps them grounded and makes them at least somewhat responsible.

 

I really don't want them graduating with $120k in debt- that's for sure.

 

It is my hope and intention, to have enough to be able to cover tuition, fees and housing so that they can have a low-stress part time job at Taco Bell to earn money for books, beer, food and entertainment...And still have time to study AND have some fun.

 

The degree of expected contribution would also be proportionate to the level of difficulty and their relative success. If I have a child who goes into astrophysics, for example, I will be willing to contribute a larger portion so that their education IS their job-so long as they treat it as such...An Arts degree??? not as much- I have one of those, so I have a pretty good idea about how much time you need to invest in those ;D

 

So I think for us, our plan will be blended and flexible depending on the course of study, degree of difficulty, dedication of our child to his studies and our ability to contribute.

Link to comment

I think the parent should try their best to help their child pay for college the best they can. College/Universities are expensive. I'm on a scholarship and it's stressful. If I lose my scholarship, I'll have to pay for that portion. My parents thankfully pay for the rest of my tuition. My boyfriend has paid for his schooling on his own and has debt that he is slowly trying to pay off. His family doesn't have the money to help him, so he's had to fair for himself. He's done well for himself, but he is behind many others his age since he can't save up money like others can. It's important to give your child the best possible opportunities, so that they can succeed. If they are stuck with massive student loans, then they will struggle a lot more than they should.

Link to comment

I have a partial academic scholarship. My parents pay the rest. They started saving before I was even conceived, not kidding.

 

I think these days, college is almost a necessity. Not always, but most of the time, yes. That's why its important to plan for it.

Link to comment

I personally feel that a parent should really scrutinize the value of a college education before deciding whether to help pay for it. As others have said, they're expensive. Contrary to what many people say, having a degree doesn't automatically guarantee a "1,000,000" dollars more in income. It doesn't guarantee a job either. It's a risk, and if manged right it could pay off well.

Link to comment
I personally feel that a parent should really scrutinize the value of a college education before deciding whether to help pay for it. As others have said, they're expensive. Contrary to what many people say, having a degree doesn't automatically guarantee a "1,000,000" dollars more in income. It doesn't guarantee a job either. It's a risk, and if manged right it could pay off well.

 

I agree. For all intent and purposes a child MAY have no desire to go to college. Rather than making a "college fund" just creating a "child's future plan" fund is much better and gives the child the option to choose in which ways they want to "further" their future. I would NEVER say "I'm putting money aside for you to do what you want" but rather, "I'm putting money aside for your future and you have several options to choose from. You can either use 1/2 of the money to go to a state university, and take out loans, work, or get a scholarship to pay the rest. You can go to a community college for two years and transfer to a 4 year university and have ALL of your education paid for. You can go to a private college and only use 1/3 of the money. You can start your own business or invest in a business. You can go to a trade school and use that money to put a downpayment down for a house and car. OR you can go to the military and use that money once you're out for your family to fall back on. These are your choices" Or rather that is what I would do for my child. I think giving a child options, and also allowing them to determine which path they feel is valuable(which also includes parents and child come together and researching and discussing it the moment they start high school) is a good idea. This gives the child a chance to REALLY consider their options and what they want to do. This also will help them determine what they feel is of value to them.

 

Because in all honesty there are "certain" majors or career paths that don't require a traditional degree, or a "4 year path" and that are children who don't desire to go to college for whatever reason. Though I value education, I also value independence, and creativity and while I would encourage my child to go, I would also like them to invest in the decision themselves(mentally, and financially). That is primarily why I wouldn't pay for the entire education unless they went the community college route.

 

I don't feel as though college is as much of a necessity as people make it out to be(there are many paths to success) but do feel that it's important enough that a parent should have some sort of financial liability in it, if a child chooses to go.

Link to comment

My parents didn't and couldn't do the college fund for me. I was not planned (bc malfunction) and they were just newly married. Add to that my father's spending that eventually lead them to file for bankruptcy, yeah. Luckily the first few years I tried to go to school I was able to use financial aide which I think is a HUGE help with students. Yeah it depends on what you the student make and until the age of 24 what your parents make but it can help. It wasn't until this past semester I had to take out a student loan. My mom co signed with me but it's my responsibility to pay it back over the next ten years. :s

 

If parents can do a nest egg for college its great but there are options for those who can't. Scholarships, financial aide, work related scholarships.

Link to comment

Financial aid covers half of my tuition, which includes grants and loans, and my parents pay for the rest. When I graduate, my parents expect me to pay them back. It is hard sometimes. My school schedule changes all the time, so it's hard to keep a good job. Any money I make mostly goes to bills so I don't really get to do much. It'd be nice if I could get a little allowance money so that I didn't have to worry about money right now.

Link to comment

In the UK as a student going to University you get a loan for the tution fees and then a grant for the housing and other costs. Admitadly you have to pay it back, but I dont see it as my responsibility as the parent to pay for my childs education. My parents didnt pay for mine. If anything knowing that you have this debt at the end actually motivates you to do better, because if not its your own money youre wasting.

Link to comment

I think it's important to support your kid's education into college (if possible). My parents support me as best they can, they bought me my first car and I live at home so I really have no expenses except for school & whatever I buy for myself.

 

Finical aid is what pays the "bulk" of my school & without it, I most likely would not be in college. Family members have also helped me (my Aunt). So overall its a combination of my family, finical aid and me working when I can to bridge the gap. So far, I'm debt free and by the looks of it I will stay that way all the way to my bachelor's degree.

 

After that, I'm off to med school and I'll be taking out a 180 thousand dollar loan lol!#-o

Link to comment

It's a personal choice, we are saving for ours but I think the most important thing is for children to recognize how important education is beyond high school and isn't just about going to college and getting a degree. I think the worst thing to do is not do either and let them grow up without giving them any sort of direction in life.

Link to comment

I think *when possible* the parents should at least help out a little. Talking about this kind of stuff is important. The parents should talk to their kids about what they plan on doing, and what the kid's thoughts are on his future..and figure out a plan from there. My parents help me out as well, and I can't be more thankful. I am not saying they should go overboard with it, but aiding your kids in order to better their future is not a bad thing, and is different from spoiling them.

 

I know I will be doing the same for my kids when the time comes..I will help them when I can.

Link to comment
I have a partial academic scholarship. My parents pay the rest. They started saving before I was even conceived, not kidding.

 

I think these days, college is almost a necessity. Not always, but most of the time, yes. That's why its important to plan for it.

 

This is my plan.

Having a child is a privledge, not a right and I believe there should be some preparation before conception.

If my clock (or whatever) runs out before I have a decent estabilishment then IMO I don't deserve to have a baby.

My biggest fear in life is having a baby because I feel lonely or feel like it's "the next step" and in the end I can't afford to buy him/her decent clothes, put him/her in sports/pay for their education, etc.

Link to comment

We have 529 plans set up for all 3 of our boys, but have told them that they will be going to a JC for the first 2 years and getting an Associate's degree unless they either A) get grants/scholarships that cover everything (for 2 years) at a 4-year or B)pay for 2 years themselves (or 1/2 of each year for 4 years). My oldest and youngest are fairly good athletes (and really good students) so they have a fair chance of getting athletic/academic scholarships and the middle one wants to go into the military, although I'm not sure if that will happen or not because of health issues.

Link to comment
We have 529 plans set up for all 3 of our boys, but have told them that they will be going to a JC for the first 2 years and getting an Associate's degree unless they either A) get grants/scholarships that cover everything (for 2 years) at a 4-year or B)pay for 2 years themselves (or 1/2 of each year for 4 years). My oldest and youngest are fairly good athletes (and really good students) so they have a fair chance of getting athletic/academic scholarships and the middle one wants to go into the military, although I'm not sure if that will happen or not because of health issues.

 

I think this is a good idea. A lot of people underestimate how much they can save by going to a community college FIRST then a 4 year university after. I tried to do this and my parents didn't let me. But I think it probably would've been good for me, because during college I changed majors several times and still haven't figured out what I wanted. I believe I wasn't ready to transition from HS to a 4 year school, and probably needed "in between time" prior to going to a 4 year university. I too plan on setting up 529 plans for the children I have, with a similar plan as yours.

Link to comment
My plan was to do the two year and then four year. They just dont prepare you enough in HS for college, evem tech.

 

I agree. I also think that there are a ton of students that aren't ready to go to a 4 year university and sometimes spending those two years living at home, working and going to a CC or JC may be more beneficial and save more than just jumping straight into a university when you aren't ready. Needless to say I would probably give my children the choice, but emphasize a CC or JC if they want to save money and a grow a little first.

I think Private schools are nice(I went to one) but on the same hand I think I probably would have gotten a decent education had I went to a public state university and it also would saved my parents money.

Link to comment

I think parents should help as much as they can. Sometimes like for my parents, they have 4 other kids, so they were not able to help a ton. I decided to go to private school which I loved, but not sure it is worth it now. I have a decent paying career as a teacher, and I do love what I do, so I guess it was worth it. I got financial aid, and my Dad is a veteran so I got benefits from there also. My parents took out a loan also each year they are paying back. Most of the loans I for everything else I needed I took out though. So now I am paying those back and yeah, it is not fun!

Link to comment
I think this is a good idea. A lot of people underestimate how much they can save by going to a community college FIRST then a 4 year university after. I tried to do this and my parents didn't let me. But I think it probably would've been good for me, because during college I changed majors several times and still haven't figured out what I wanted. I believe I wasn't ready to transition from HS to a 4 year school, and probably needed "in between time" prior to going to a 4 year university. I too plan on setting up 529 plans for the children I have, with a similar plan as yours.

 

Studies have shown that the number of kids who do this actually do better and the numbers who finish are higher as well. My oldest actually plans on taking a couple of his "core" classes there during the summer between his Junior and Senior year if he can swing it...the school allows it, it's just a matter of working it into his schedule...depending on what class it is, some of the classes give them "dual credit" in HS & JC.

Link to comment
Studies have shown that the number of kids who do this actually do better and the numbers who finish are higher as well. My oldest actually plans on taking a couple of his "core" classes there during the summer between his Junior and Senior year if he can swing it...the school allows it, it's just a matter of working it into his schedule...depending on what class it is, some of the classes give them "dual credit" in HS & JC.

 

I did this. I got credit for Westren Civ while I wa still in HS.

Link to comment

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...