If your child is going to school on a scholarship....

[Anonymous]

Anonymous wrote:

Anonymous wrote:I like grad school better than a new car.

+1

+2

[Anonymous]

Anonymous wrote:My DS is attending college on a merit scholarship. As her parents, we intended to pay for her college tuition at a state or moderately priced private school. We weren't able to save as much as we wanted, but would have found other ways to pay her tuition so she doesn't graduate with loans.
So I guess my question is, since she has her own funding for the moment (she may switch majors and then will lose her scholarship), should I put aside the money she is saving us to give to her later? Buy her a new car? (she drives a family hand-me-down) Offer to pay for graduate school?
We are still paying for her living expenses and incidentals, if that makes a difference.
Thanks.

When you say "she may switch majors and then will lose her scholarship" - does she really not like/not do well in her current field of study? Unless it's a humanities-type field and and she's really not doing well - she should probably just complete her current major. After all, many do not work/go to grad school in the major they graduate in.

[Anonymous]

Anonymous wrote:College students don't need cars

If they are in an urban school like GW or NYU they don't, otherwise they are better off with a car than without. However, nothing wrong with an old car. My college DC drives a 12yo SUV her dad drove before her. She loves it and is very grateful for the mobility.

[Anonymous]

No upside to buying a young kid a new car. As long as she is in a safe car, then she's fine.

Don't put any more money into a 529, but into something more flexible that can be used for either school or your retirement.

[Anonymous]

See how much is left when she graduates. Help her with the deposit on her first apartment and pay 25% of her rent for 3-6 months when she starts working. Don't tell her this until she has already selected an apartment in her budget.

If you still have lots left, put it aside for her wedding / first house. Again, don't tell her until she's already started planning a wedding / house she can afford on her own.

[Anonymous]

OP here, these are all great ideas. Thanks.

[Anonymous]

Assuming you don't have other kids (haven't read the whole thread) - my advice is this: Don't try to figure it out now. And keep your mouth shut. For now. Make no promises. It's too early. If the money's still burning a hole in your pocket at graduation, you can decide to do something then.

[Anonymous]

My sister got an athletic scholarship. They looked at it like she "paid her own way" because she trained really hard. My parents bought her a car when she graduated. I think that was wonderful. The cost of the car was one quarter of the tuition.

[Anonymous]

Just put it in the bank. Some big expense will come up that you or your child will need it for. Congratulations on the scholarship!