It is mathematically impossible to defend the costs of sending a kid to college. Will they make enough income to justify the costs? Will they have a higher income if they go to a college that costs more money? Here are a few thoughts on the subject:
• College may possibly be about more than just getting a good job. College can also be a huge part of the growing up process of your child. They can explore who they are in the world outside of the construct of their parents. They can edit how they understand the world and how they fit into it. “Life” education doesn’t necessarily equate to an income can still be a necessary part of growing up.
• Consider a strict 4-year college plan. They can keep going but the money stops after 4 years. Give them the freedom to make the choice to finish on-time or pay for more. Let them decide how to pay for Grad school.
• Watch out for college debt. College will cost crazy money most likely. Suck it up and deal with it. HOWEVER, stay with what you can realistically afford. Too much debt can weigh you and your child down in ways that may significantly limit their future life options.
• Make them be responsible for college too. Scholarships or summer jobs or good grades are requirements that can help make them invested too.
• If they need to live at home after college to pay off college debts, make them pay you rent. Collect it and save it secretly for them. When they move out, give it back to them to pay off more of their debt or for a downpayment on their next place. They need to budget though for housing expenses even if living at home.
By Cammie Humke, Investment Adviser at The Humke Group, Inc Located at 555 S. Randall Rd in St. Charles, IL, phone 630-584-7343
The Humke Group, Inc is an independent firm offering securities through Summit Brokerage Services, Inc., Member FINRA/SIPC. Advisory Services offered through Summit Financial Group Inc., a Registered Investment Adviser. Opinions expressed are that of the author and are not endorsed by the named broker/dealer. All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.