Reply to Is it responsible to spend 90K/yr in education?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Let me help you in a different way.

The most important question to ask yourself for decision making is how you survive a less favorable outcome in both cases.  How bitter and broke will you feel if your kid goes to a $$$$ school and can't support himself vs. if he pays a discounted rate for a state school and ends up unemployed.  It's the loss dilemma. Like a risk calculation.  Can you afford this risk like a family with tens of mil NW that would just wave it off financially even if disappointed?  If your kid doesn't make it, then having extra savings become even more instrumental in helping him get up on his feet or go to a grad school.  [/quote]

Why does state school mean unemployed as an outcome? [/quote]

You didn't understand.  It's a hypothetical outcome for both of them.  It's a "loss" scenario where your kid fails regardless of what school they go to, you have to consider it if you want to truly make a decision you won't regret. When decision making is difficult you need to create a scenario where the choice is clear.

It's not out of the ordinary that some kids even if they get jobs out of college do not do well, they can lose their jobs, quit because they hate it and want to pursue something else, burnout, relationship or even health issues.  Life happens.  Imagine scenario where the money you spent on education isn't going to "pay back" and see if this would turn into a regret or set your entire family back. If you are rich throwing way a few hundred Ks isn't going to hurt you, you will recover fast and there is more where it came from.  It's a different story for people for whom this amount is life changing and who had been saving.  especially if it's going to be needed to help get your kid back into the saddle (get a grad degree or start a business, etc).

Also, a "failure" doesn't always mean being unemployed after college. Not every kid thrives in their after-college job and continues to build a career.  You must know people like this.  Maybe they became unemployed 2-3 years after their entry level job they hated, maybe they wanted to switch industries or open a business or go to a grad school.  These are all normal things and in no way tragedies, but they are costly initially and it's better if you have funds for this and didn't spend all the funds you dedicated to your child on an undergraduate degree for "prestige" and there is nothing left and there won't be more.  If you are not thinking about these scenarios and only assess the positives you are not thinking.  And nobody here knows your true situation especially future financial outlook to give you the best advice. [/quote]

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