Bethany, one of our Members of the Tribe here on the blog, recently asked "How much do you spend on your children's education?" She astutely noted that I do place a great deal of emphasis on education in The Old Money Book and on this blog.
It is, as many have noted before me, the surest path from poverty into the middle class. It is also a time-tested tool for anyone wishing to go from any socioeconomic position into the upper class, cultural elite, or just plain rich.
More importantly, it is a large contributing factor to quality of life, as well. College graduates, in addition to earning an average of more than $600,000.00 over a working lifetime than non-c0llege graduates, also divorce less.
So the benefits are obvious. But if you're a parent on a budget, how much do you spend on a college education? Do you risk your own financial security to invest in your child's future? How much is too much?
First, let me say that I'm going to want to hear from everybody on this subject, as this can't be the first time this conversation has come up between a married couple, or faced by a single parent, a grandparent, or an involved aunt or uncle.
Second, I think a lot of the choices--the decision of whether or not to go to college, as opposed to a technical or vocational school, to attend a local university and live at home, to attend a state school, or to attend a private school in another area or another country--depends on the motivation and inclination of the child in question.
All of the above options will increase in costs as a parent considers each one. So the motivation factor is key if you decide (for example) to get a second mortgage on your house or put a big dent in your savings in order to finance your child's college education.
Will a specific education from a specific university really benefit your child and supercharge their future? Universities develop reputations for engineering, science, law, medicine, and film, etc. that make them funnels for industry, government, and the arts, communities that are constantly looking for educated talent.
Is your child on that focused, accelerated track for a particular field of study and subsequent profession? Is graduate school part of this path? Are (often unpaid) internships?
As always, I recommend candor. As the senior year of high school approaches, I would have a heart-to-heart, come-to-Jesus conversation with your college-bound child. Ask them questions and listen. Accept ambiguity. Not many people know exactly what they want to do or be at age 18. But motivation and passion are obvious, even at a young age.
Communicate to your child what you as parents are willing to commit to their education. And communicate that you expect them to match that commitment in their efforts to get good grades, finish college, and max out their potential in life.
This conversation may help both parent and child decide on the best course of action and the best way forward.
Young people rise to expectations, especially when those expectations are motivated by love and accompanied by support.
Now, again, I'd like to hear from everyone on this very important subject. Feel free to chime in on scholarships, grants, loans...anything and everything that can help.
Good luck, Bethany. We definitely want to support you, your children, and your endeavors to educate them.
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