Why pay all of kids' college?
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Anonymous
Parents should pay if they can afford it. However, in dcumland a kid can contribute $10k per year easily. Work during breaks |
Anonymous
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Anonymous
How is your kids getting to $2m by 30? I had all those advantages, a very good job, and a high savings rate, and I didn't come close to $2m by 30. |
Anonymous
They will have enough at 30 so that it will grow to $2m by age 65. Meaning that as they get married, start a family they don’t have to massively save for retirement and can focus on their family in the 30s. Huge advantage |
Anonymous
I did not grow up in the DMV and my parents (who never went to college) paid for my in state college tuition and like 75% of grad school. They had 1 kid and really wanted me to have more opportunities than them so they pinched pennies and saved from the time I was born, and my dad worked longer than he would have otherwise I’m sure. Because of education, my parents who grew up working class were able to have a child who is now UMC in the DC area signing their kids up for bougie camps and travel sports. Don’t pay for college for your kids if you don’t want to/can’t, but I am so grateful my parents did this for me. And I don’t think the idea of paying is just a DC area thing. |
Anonymous
DP, but I absolutely think being able to choose a job you want vs slaving to a job you need to pay back loans is a leg up. I am a fed (parents paid for college and law school). I graduated in 2009 when there was a recession. Some of my top of the class classmates had their big law offers deferred and ended up underemployed for a while. Some eventually bounced back onto track, but they *had* to stay on the big law treadmill to get out of their debt. Then when kids came along or they didn’t make partner, they had to suddenly downshift into something like government work. So they may end up at the same place as me, but I pay a lot less toward my pension and have more years toward retirement. Some stayed on the big law track and are successful by financial measures, but there’s an element of golden handcuffs they feel they can’t walk away from, and it causes a lot of internal stress. I think freedom to make life choices without having to run on a treadmill to keep up with debt is a blessing. |
Anonymous
Tell me that having student loans is going to give you the freedom to start the next Tesla. I mean come on, most people regardless of loan status aren’t starting multi million dollar companies and that is a stupid measure of success because most people don’t even want to do that. And the reason Elon Musk’s student loan story is notable is because for everyone one of him there are many more company founders who were given family money. |
Anonymous
The job your kid gets out of college is way more important than having loans or not. Also, where did the car payments come from? This is DCUM where many kids are living in an urban environment and nobody owns a car. Now you also have to give your kid a car? I mean...this is now the equivalent of saying not having any expenses and a trust fund is HUGE...no s**t it's HUGE. I still don't get your math. So, I gather you are saying if you are able to save $9600 per year starting at 22, that will grow to $2MM at 60? How do you know your kid is saving that $800/month vs. taking nice vacations or eating at nice places several times per week? It's hard to have conversations where your ambitions for your kids are so modest. I am paying 100% for my kids, but it's really not difficult for a 22 year old that works a professional job at any number of companies to repay $20k-$30k in loans fairly quickly. For many kids, the first-year bonus can nearly wipe that out. |
Anonymous
My kid is not chasing IB jobs. Most kids are not getting a $20K signup bonus. They have a good job in a MCOL area, however a vehicle is required. They earn a good salary and get a 10%+ raise yearly (good for the industry especially now when many companies are laying off and not hiring). Here's the math. They have been contributing max yearly to Roth since they had a job at 18. Continue that along with 8-10K yearly to their 401K. So by all estimates by age 30 they will have enough in "retirement accounts" to grow to over $2M by age 65, even if they stop contributing at age 30. Obviously they won't stop, but it's a huge leg up to have that. Versus their friends who have $30K+ in student/parent loans and who need a car but have to purchase one themselves. How do I know? Because we still talk weekly and they discuss finances with us. They are a saver and don't waste money. And who would take those fancy trips with them???? majority of their friends are broke and paying off loans |
Anonymous
When you have “skin in the game”, paying 65K in tuition fees, you don’t risk your education by engaging in violent protests on campus. When you have “skin in the game”, you focus on your education, you focus on graduating on time. If these students had skin in the game, they would focus on their education instead of creating the chaos we see in campuses throughout the country. No surprise that most protests are seen in Ivy League schools were most students have their tuitions funded by their parents. |
Anonymous
Not OP but I know a lot of people who had their loans forgiven under the Biden promise. |
Anonymous
| My Black American parents one had help (my mom for undergrad, my dad paid for her grad degree), one didn't (dad worked his way through still graduated in four years with two degrees ), and they paid OOP for me and my siblings to go to undergrad. We are all aiming to do the same for the next generation. |
Anonymous
Plenty of kids value their education and give 110%, yet don't need to "have skin in the game". Our kid's jobs are to do well in school. We can afford it so they don't need to work 10+ hours per week as well as study. They can focus on studying. |
Anonymous
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My parents paid for 70% of my tuition, rest was loans. Paid the loans off in 2 years. $30k.
It helps when you didn’t study something useless like feminist studies. |
Anonymous
Good. Your kids are responsible citizens. They don't protest. They focus on studying. Pay for them, they deserve it. Most kids are not like yours. Just see what is happening on campuses. |