I bet that title flustered some feathers huh? Well it should because I am a proponent for making your kids pay for their own tuition. I’m not saying this out of spite, but from experience. This concept may be challenging for you, but I think it’s a great topic to cover. Who knows, you might change your opinion by the end of this article.
I’ll start with my college experience. My parents and I had an agreement. I was responsible for paying for my tuition and my parents would pay for my textbooks. To give you a grasp on these expenses, my yearly tuition for college was $7,500 and my yearly books came to $1,000. From a young age, my parents taught me to refuse debt and always pay things in cash. Tuition was no exception. From day one of college, I made it my goal to pay my tuition in cash each quarter and graduate college debt free. With such a huge expense ahead of me, I decided to join Air Force ROTC. I ended up getting a tuition scholarship my first two quarters of college. I did end up switching majors and quitting ROTC, but joining up for a time did help for that time frame. As a side note, ROTC was a blast while it lasted, and I highly recommend anyone to join if they want to become officers in the military. It just wasn’t God’s plan for me.
It’s important to point out that from the on-set, I made this a long term goal. This would never have happened if I thought short-term. During those four years, I learned a ton about myself and matured faster than the average college student. When parties were happening on the weekends, I was working. When college football games were going on, I missed them (only got to go to 2 games in four years!). OK, OK, it wasn’t that bad. I did have a blast in college, but I did have to sacrifice certain things to pay for my college.
It’s amazing what a little financial strain will do for your thirst for conquering a goal. I ended up starting my own furniture moving company on the weekends, had multiple paid internships, and even did landscaping jobs for neighbors. I ended up graduating college debt free. God gets the glory on those, doors were opened and I definitely felt blessed during those times and still do today!
Looking back, having such a financial burden molded me into the person I am today. I’m just as frugal today as I was in college. Habits like spending less than you earn, going the extra mile and seeking out deals instead of paying full price are habits that are now ingrained in the way I live my life. Do I wish my parents paid for my college tuition? No way! To be honest, I would probably still be in school and sitting on a couch with zero inspiration to better myself… So yes, I’m glad my parents never saved or paid paid college tuition. So that’s my story, I hope you enjoyed it.
This brings me to my four key points for why I recommend parents avoid saving for their kid’s college tuition.
1-College doesn’t cost as much as the media tells you it does. Look, the reality is this. If you want affordable tuition for college, go to an in-state public university or have them enroll in some online college courses. I know, I know, but you want your kid to go to the “best of the best.” Well, here’s another reality check! For the vast majority of students that attend colleges like Cornell, Stanford, or MIT, the return on investment is terrible! I won’t go into details, but I make significantly more than my friends who attended private colleges. Hmm, let’s do the math on that one. They have loads of debt and don’t make that much out of college. I think my situation wins big. So here’s the deal: send your kids to community college for the first two years, then transfer them to an in-state university. This is your best bet and it provides an opportunity for your kids to pay their own way through school. Going the cheaper route will free up money post-college for a down payment on a house or buying that car you’ve always wanted.
2-You have to look out for “numero uno.” It sounds selfish, but it’s a rather good point. Saving for your own retirement future is far more important than paying for a fancy school for your kids to go to. Your financial goals come first. I’m not saying that you shouldn’t help them at all. I’m saying that you should plan for retirement, THEN help your kids as much as you can. An important thing to remember is that your kids can always get a student loan. You will never be able to get a retirement loan because they don’t exist! Invest in yourself first. The sooner you learn this the better.
3-College savings plans are rather poor. If they were significantly better, then yes, I would possibly consider helping my kids pay for their tuition. Unfortunately, college savings plans are terrible. For one, you don’t know your future income levels, therefore you don’t know your future tax brackets. You don’t want to be in a position where you are missing out on tax benefits. Also, college saving plans really limit you on how you can invest your money. College savings plans have way more negatives than positive. Steer clear of these plans and make your kids pay for their tuition!
4-By making your kids pay for their tuition, you are actually being better parents and showing them true love. Good parenting is teaching your kids life lessons that will stay with them for a lifetime. Bad parenting is pleasing your kid’s every need and request. Your kids might give you some flack for not paying their tuition (I know I did!) but they will thank you when they’re older and financially secure because you made them pay their way. I am thankful to my own parents for making me pay my own tuition. It really did change me for the better.
I’m not the only one in my family that has gone through this life changing experience. My little brother is going through the same struggles and financial dilemmas. Thankfully, he heeded my parents wisdom. He attends a small community college and plans to attend a large University. He works his butt off just like I did and pays his tuition with cash. He has had to make the same sacrifice that I did and still lives at home. It’s just another example of discipline and the desire to refuse to go into debt. I’m proud of my little bro!
In closing, American families have fallen into the trap of taking care of every need of their kids. We need to bring back “old-school values” and make kids work for their education. A college education is not a right, it’s a privilege. It’s a touchy subject, but one I felt that I needed to write about. Comment below with your thoughts on this subject!
I agree. I had a bit of help from my parents, but I essentially paid for everything on my own. I paid for most of it with scholarships and student loans for the rest. I do have to disagree with you on private colleges. They give out a lot of scholarships, and can definitely be worth it. Five years later and a degree from a top 15 university, I was only $30k in debt and making well over $60k a year at my first job. I wouldn’t have gotten that job if I didn’t go to such a prestigious school.
I agree that going to those prestigious colleges doesn’t guarantee a big bucks future. It still depends on hard work and luck. But it is still a huge edge if you come from ivy colleges. And also it depends on what major you will choose.
You’re one of the few where a private college ROI has come to fruition! I cannot tell you how many people I know went to prestigious universities and never make the “big bucks.” I went to a in-state public school (University of Washington) and graduated making over 70k. But, I will say that my major played a big factor in this (project management). If I had chosen psychology or sociology, I’d be making pennies.
There is also a difference between a typical private college and ivy league college, so I’m not writing off all private colleges haha.
What did you major in?
Do you have kids? I’m asking because I agree with you 100%, but it’s easy to agree about hypothetical kids. I’m guessing, though, with my own, I’d have a different idea.
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