Will you pay for your kids' college/graduate education?

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acegolfer
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Will you pay for your kids' college/graduate education?

Post by acegolfer » Sat Aug 04, 2018 7:16 pm

I'm curious how much will you support your kids.

If yes, to what extent? Part of tuition, in-state full tuition, private university tuition, living expenses?

Edited again
Last edited by acegolfer on Sun Aug 05, 2018 7:07 am, edited 2 times in total.

Bacchus01
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Re: Will you pay for your kids' college/graduate education?

Post by Bacchus01 » Sat Aug 04, 2018 7:22 pm

Yes. We will foot it. We’d prefer to give out inheritance to our kids while alive, and a quality education is about the best inheritance we can give.

livesoft
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Re: Will you pay for your kids' college/graduate education?

Post by livesoft » Sat Aug 04, 2018 7:27 pm

We paid for kids' college/graduate education. Contrary to the OP's statement, the cost was not and is not skyrocketing. May I suggest a closer look at reality and looking for reasonable cost places to get educated?
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Tycoon
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Re: Will you pay for your kids' college/graduate education?

Post by Tycoon » Sat Aug 04, 2018 7:27 pm

1st child went for free as an undergrad and now is going back for free as a grad/Phd student. We're paying for #2's education. We promised our children we would pay for their college education as long as they did well in school. We have no regrets.
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daveydoo
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Re: Will you pay for your kids' college/graduate education?

Post by daveydoo » Sat Aug 04, 2018 7:30 pm

^ This. "Sticker price" and out-the-door cost can vary enormously. The actual price paid by attendees has risen a lot less than the more widely discussed sticker price. In fact, this discrepancy accounts for much of the crazy increase in list price -- with the full-freighters heavily subsidizing the discount kids.

Edited to make sense :D. Maybe.
Last edited by daveydoo on Sun Aug 05, 2018 2:42 am, edited 1 time in total.
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Isabelle77
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Re: Will you pay for your kids' college/graduate education?

Post by Isabelle77 » Sat Aug 04, 2018 7:33 pm

It depends on where our kids wind up going to school, but we hope to fund undergraduate completely. Probably not graduate.

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bligh
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Re: Will you pay for your kids' college/graduate education?

Post by bligh » Sat Aug 04, 2018 7:33 pm

Yes.

529 Plan + Cash Flow should hopefully be enough for 100% of undergrad for both kids.

Assisting with any graduate studies will depend on our situation.

marcopolo
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Re: Will you pay for your kids' college/graduate education?

Post by marcopolo » Sat Aug 04, 2018 7:35 pm

We are in the middle of paying full freight for our two sons.
I consider it money very well spent.
Once in a while you get shown the light, in the strangest of places if you look at it right.

HEDGEFUNDIE
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Re: Will you pay for your kids' college/graduate education?

Post by HEDGEFUNDIE » Sat Aug 04, 2018 7:41 pm

livesoft wrote:
Sat Aug 04, 2018 7:27 pm
Contrary to the OP's statement, the cost was not and is not skyrocketing.
+1, true even if you are paying full freight at private schools.

My Northwestern bachelor’s degree cost $37k/yr in tuition 10 years ago. Today it costs $54k/yr. That’s a CAGR of only 4%, barely over inflation.

S&P 500 grew at 14% CAGR over the same time period. If you are wealthy enough to be paying full freight, you surely benefited from the stock market as well.

I don’t see a problem here.
Last edited by HEDGEFUNDIE on Sat Aug 04, 2018 7:42 pm, edited 1 time in total.

ThankYouJack
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Re: Will you pay for your kids' college/graduate education?

Post by ThankYouJack » Sat Aug 04, 2018 7:42 pm

I'll probably pay 100% because we should have the means to easily do so.

But having paid for most of my own college, I think there's a lot of value in that too. I did work studies, got paid internships, got grants and scholarships, took out loans that I was able to easily pay off. Having some skin in the game to assess the ROI of my education was a good thing for me.

livesoft
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Re: Will you pay for your kids' college/graduate education?

Post by livesoft » Sat Aug 04, 2018 7:44 pm

My son's rent for the exact same apartment (he did not move) dropped almost 17% for the 2018-2019 year from the previous year.
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Traveller
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Re: Will you pay for your kids' college/graduate education?

Post by Traveller » Sat Aug 04, 2018 7:45 pm

livesoft wrote:
Sat Aug 04, 2018 7:27 pm
We paid for kids' college/graduate education. Contrary to the OP's statement, the cost was not and is not skyrocketing.
Another +1.

I am paying for 3 kids right now.

Walleyewhacker
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Re: Will you pay for your kids' college/graduate education?

Post by Walleyewhacker » Sat Aug 04, 2018 7:47 pm

Paying for both of our kids, we have known we would do this and planned for 18 +/- years. Both our parents did it for us and we really appreciated it and now we are doing it for our kids. It hurts some but well worth it. Plan a head. Look into grants, scholarships etc.

acegolfer
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Re: Will you pay for your kids' college/graduate education?

Post by acegolfer » Sat Aug 04, 2018 7:55 pm

livesoft wrote:
Sat Aug 04, 2018 7:44 pm
My son's rent for the exact same apartment (he did not move) dropped almost 17% for the 2018-2019 year from the previous year.
Is this a single observation or nation wide trend?

Jack FFR1846
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Re: Will you pay for your kids' college/graduate education?

Post by Jack FFR1846 » Sat Aug 04, 2018 7:56 pm

Yes. Am now.

Yr 1: $27.5k with merit and stafford
Yr 2 tranfer: $59.5k with stafford
Yr 3 $58.5k with stafford
Yr 4 $65k
Yr 5 coming $57.5k with stafford

grad will be his responsibility after becoming a working engineer.

Son #2 will be piece of cake comparatively. Program he wants is only offered at community college: $6k a year plus whatever the nearby state college charges for housing. I expect $20k total a year for 2 years. Transfer program goes to $30k a year. Under $200k all tolled.
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livesoft
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Re: Will you pay for your kids' college/graduate education?

Post by livesoft » Sat Aug 04, 2018 7:57 pm

acegolfer wrote:
Sat Aug 04, 2018 7:55 pm
livesoft wrote:
Sat Aug 04, 2018 7:44 pm
My son's rent for the exact same apartment (he did not move) dropped almost 17% for the 2018-2019 year from the previous year.
Is this a single observation or nation wide trend?
It is certainly a single observation in that my son has learned some negotiating skills.
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Ragnoth
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Re: Will you pay for your kids' college/graduate education?

Post by Ragnoth » Sat Aug 04, 2018 7:58 pm

Parents paid my undergrad, and I was on my own for grad school. I anticipate doing the same for my children.

livesoft
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Re: Will you pay for your kids' college/graduate education?

Post by livesoft » Sat Aug 04, 2018 8:14 pm

And to answer the edited question: We let our college students have our oldest car when they graduated from the college. The cars were/are on their last miles and I think most Bogleheads would not call them reliable, but a 12 to 15 year-old car teaches them something, gets them to places they need to go without getting them to places they don't need to go, and makes them want to get some money to get a better car.
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GoldStar
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Re: Will you pay for your kids' college/graduate education?

Post by GoldStar » Sat Aug 04, 2018 8:22 pm

2 in college and paying for both (with 529 plans). Didnt want to straddle my kids with debt starting out the way I was.
Your definition of "sky rocketing" I don't understand - do you know what a sky rocket is? :)

KlangFool
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Re: Will you pay for your kids' college/graduate education?

Post by KlangFool » Sat Aug 04, 2018 8:34 pm

OP,

Only when my FI is fully funded. Since my FI is fully funded, I am paying for my kids' college education. It is about 30K per kid per year (tuition and living expenses).

KlangFool

acegolfer
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Re: Will you pay for your kids' college/graduate education?

Post by acegolfer » Sat Aug 04, 2018 8:45 pm

KlangFool wrote:
Sat Aug 04, 2018 8:34 pm
OP,

Only when my FI is fully funded. Since my FI is fully funded, I am paying for my kids' college education. It is about 30K per kid per year (tuition and living expenses).

KlangFool
That figure is really good. Any tips?

delamer
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Re: Will you pay for your kids' college/graduate education?

Post by delamer » Sat Aug 04, 2018 8:56 pm

Two kids — so far paid for 2 undergrad and 1 grad degrees. Maybe one more degree to go.

We covered everything except “spending money” which the kids earned with summer jobs.

bampf
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Re: Will you pay for your kids' college/graduate education?

Post by bampf » Sat Aug 04, 2018 9:05 pm

We will pay for 4 years at the top state school including room and board. Out of state would be fine as well, but funding level stays the same. Tuition is about $15K and dorm life is about $15K. Kids will pay for books and extra curriculars (football games and beer or whatever). If they want to move out and or get an apartment we will figure out a way to help with that to a certain extent. Graduate school is a totally different discussion, but, presuming the grades are good enough and the major is a good investment I would be inclined to help to some extent. We have also funded UTMA accounts that are to be used for either graduate degrees or first house or (hopefully) the foundation for becoming FIRE waaaay before I do...

blessed
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Re: Will you pay for your kids' college/graduate education?

Post by blessed » Sat Aug 04, 2018 9:11 pm

Yes, I did pay for all education and all living/other expenses while they were in college. In my case it was my two nieces and they both went to expensive private schools for undergrad with one of them also finishing grad school. I should have made them choose a different more cost-effective route but because of what they've been through in life I wanted them to have the school of their choice, not the wisest financial decision but I don't regret it. They came out of college with no debt, great educations, and each has a gently-used paid-off Honda that should easily last another 10 years. They're both doing really well now and seeing what they're becoming brings my heart a joy beyond description.

The result is my net worth isn't where it should be right now for someone with my household income. Fortunately, both of our incomes are very stable and we can very aggressively plow money into our investments and get back to where we should be.

KlangFool
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Re: Will you pay for your kids' college/graduate education?

Post by KlangFool » Sat Aug 04, 2018 9:17 pm

acegolfer wrote:
Sat Aug 04, 2018 8:45 pm
KlangFool wrote:
Sat Aug 04, 2018 8:34 pm
OP,

Only when my FI is fully funded. Since my FI is fully funded, I am paying for my kids' college education. It is about 30K per kid per year (tuition and living expenses).

KlangFool
That figure is really good. Any tips?
acegolfer,

Live in a state like Virginia that has good in-state public universities.

KlangFool

Scotttheking
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Re: Will you pay for your kids' college/graduate education?

Post by Scotttheking » Sat Aug 04, 2018 9:18 pm

I plan to.

kacang
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Re: Will you pay for your kids' college/graduate education?

Post by kacang » Sat Aug 04, 2018 9:19 pm

Kid#1 was easy, the training he was interested was only offered at community college.

We will fully fund undergrad for Kid#2. He's already halving the cost for us, by doing concurrent enrollment in high school & community college (transferable credits if he stays in-state, which is the plan). Plus he's working part-time and saving aggressively. Grad school is different, we will likely support but not 100%.

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HomerJ
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Re: Will you pay for your kids' college/graduate education?

Post by HomerJ » Sat Aug 04, 2018 9:22 pm

acegolfer wrote:
Sat Aug 04, 2018 7:55 pm
livesoft wrote:
Sat Aug 04, 2018 7:44 pm
My son's rent for the exact same apartment (he did not move) dropped almost 17% for the 2018-2019 year from the previous year.
Is this a single observation or nation wide trend?
Heh, nearly every livesoft observation is strictly personal, but many times stated as a universal truth. It's part of his charm.

This one seems pretty obvious to be a single observation though.
Last edited by HomerJ on Sat Aug 04, 2018 9:36 pm, edited 1 time in total.
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HomerJ
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Re: Will you pay for your kids' college/graduate education?

Post by HomerJ » Sat Aug 04, 2018 9:23 pm

We will pay (and have paid) for 100% of undergraduate.

Graduate school is on them.
Last edited by HomerJ on Sat Aug 04, 2018 9:39 pm, edited 1 time in total.
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camillus
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Re: Will you pay for your kids' college/graduate education?

Post by camillus » Sat Aug 04, 2018 9:26 pm

My first college experience was paid for by my parents. I did not pick a very lucrative major, though it was very meaningful to me.
My wife's college, grad school, and PhD was paid for by merit based scholarships.
My second, accelerated college experience was paid for by the both of us (three part time jobs, etc) at a satellite state school, where I majored in nursing. (Total cost of this degree was $20k plus opportunity cost.) I plan on working my way back to original interests once my family is a bit more established

A few lessons:
1) It's important to emphasize that academics require work and focus.
2) It's important to gear your education to some real world outcome, namely, being able to make a good living doing something meaningful.
3) It's important to have some skin in the game.
4) It's important to have parents who really support you, with money but also with attention and wisdom.

We have two young sons. We are planning to support them financially in a major way, but aren't sure how this will manifest exactly. We do have 529s, but they serve mainly as a place to deposit gifts in their name. What we are doing now is saving as much as we can while avoiding as much taxes as we can, mainly using deferred accounts (403b, HSA, etc). I suppose we do drop money in Roths or 529s every few months as able just for some diversification. We're saving more than 30% of income. House will be paid off before college, should we stay.

Where $$ might come from in our case to pay for our kids' college (we are in the 12% bracket d/t deferred contributions):
1) 529s, distributions early in college for sake of FAFSA
2) Roth contributions, late/last year in college for FAFSA
3) Normal cash flow
4) Cash flow from paused retirement contributions (then $18500 403b, $6900 HSA, etc - that's a lot of money!)
5) Cash flow will have been formerly paid toward private, religious secondary schools
6) Child might actually work :happy
7) Scholarships
8) Discount from my wife being on faculty, now 65% off
9) Parental loans, ie HELOC, 403b loan, etc
10) Student loans

As you can see, there are a multitude of sources for money for paying for college. It might not be smart to get too fixated on any one item, like a 529, at the expense of making decisions now about the best place to contribute relative to tax avoidance & increasing one's net worth.
Last edited by camillus on Mon Aug 06, 2018 9:15 am, edited 4 times in total.

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HomerJ
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Re: Will you pay for your kids' college/graduate education?

Post by HomerJ » Sat Aug 04, 2018 9:38 pm

KlangFool wrote:
Sat Aug 04, 2018 9:17 pm
acegolfer wrote:
Sat Aug 04, 2018 8:45 pm
KlangFool wrote:
Sat Aug 04, 2018 8:34 pm
OP,

Only when my FI is fully funded. Since my FI is fully funded, I am paying for my kids' college education. It is about 30K per kid per year (tuition and living expenses).

KlangFool
That figure is really good. Any tips?
acegolfer,

Live in a state like Virginia that has good in-state public universities.

KlangFool
Most states have good in-state public universities. When I say I plan to pay 100%, I mean State U. If they want to go to private U a thousand miles away, the difference is on them.
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KlangFool
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Re: Will you pay for your kids' college/graduate education?

Post by KlangFool » Sat Aug 04, 2018 9:56 pm

HomerJ wrote:
Sat Aug 04, 2018 9:38 pm
KlangFool wrote:
Sat Aug 04, 2018 9:17 pm
acegolfer wrote:
Sat Aug 04, 2018 8:45 pm
KlangFool wrote:
Sat Aug 04, 2018 8:34 pm
OP,

Only when my FI is fully funded. Since my FI is fully funded, I am paying for my kids' college education. It is about 30K per kid per year (tuition and living expenses).

KlangFool
That figure is really good. Any tips?
acegolfer,

Live in a state like Virginia that has good in-state public universities.

KlangFool
Most states have good in-state public universities. When I say I plan to pay 100%, I mean State U. If they want to go to private U a thousand miles away, the difference is on them.
HomerJ,

I do not know enough to know whether that is true. But, it is irrelevant in my case. I would not live in any of those states in the first place.

KlangFool

gips
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Re: Will you pay for your kids' college/graduate education?

Post by gips » Sat Aug 04, 2018 10:04 pm

We told our kids we’d pay for in-state public universities unless they were admitted to demonstrably better schools. I’m retired,last two in now, no cash flow so it’s painful but money well spent.

We’re thinking about 50 per cent of grad school costs.

bampf
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Re: Will you pay for your kids' college/graduate education?

Post by bampf » Sat Aug 04, 2018 10:07 pm

camillus wrote:
Sat Aug 04, 2018 9:26 pm

A few lessons:
1) It's important to emphasize that academics require work and focus.
2) It's important to gear your education to some real world outcome, namely, being able to make a good living doing something meaningful.
3) It's important to have some skin in the game.
4) It's important to have parents who really support you, with money but also with attention and wisdom.
I really agree with this. Without skin in the game, there may not be a sense of ownership. The question is how much? We really struggled with this. Our thoughts were they should pay 25%. Then there was an assertion that they should put forth effort to apply to scholarships. And then we came down to, the skin in the game for us is books and good grades. If they do the work to get good grades, thats skin enough for me. And, I am not funding a french romantic literature degree. STEM or something marketable. Not saying they can't go get that, but, thats on them if they want it.

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munemaker
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Re: Will you pay for your kids' college/graduate education?

Post by munemaker » Sat Aug 04, 2018 10:18 pm

My parents paid for my college education completely. My wife's parents paid for her college education completely.

We would not think of doing otherwise. We opened a 529 for each of our kids shortly after birth. We fully funded each child's bachelors degree, provided them with a car and gave them a credit card for books and living expenses.

One of them attended graduate school for a masters degree. He was able to complete half of the degree requirements along with his undergrad degree through a program that allowed qualified undergrads to take graduate courses. The balance was paid by his employer.

These were both really good investments for us. Both kids are doing really well in their respective fields and are financially independent of us (require no outpatient care). And yes, we were in the small minority who paid full sticker price.

While we are retired and in excellent financial position today, we sacrificed and struggled to accomplish this. We could have bought a nicer home and fancier cars or retired earlier than we did if we had not paid for our kids' educations. No regrets.

I am often amazed at the diverse opinions Bogleheads have on raising kids. One approach is to do all you can to help them...tutors, test prep courses, private colleges, pay for lavish wedding, down payment on first home, etc.

Then there is the other approach: It is beneficial to junior's character for him to figure it all out on his own. We would be depriving him of his sense of self worth if we helped him financially, or jeez...if we even bought a minivan to make it easier for the kids to be toted around.

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Re: Will you pay for your kids' college/graduate education?

Post by ParamedicProf » Sat Aug 04, 2018 10:22 pm

I have four sons and the oldest two have Masters degrees, the next just finished his Bachelors in Business and the youngest got his Associates in Machining at 17 and is currently in his last two years in Industrial Engineering. I have not paid for any of their education and I told them I wouldn't before any of them went. My parents never went to college and it wasn't expected in rural MS that we go. I joined the military so I could go. One of my sons did the same. The oldest used student loans and Pell Grants while the youngest has had full scholarships the entire time. Seems like a totally different world where I come from than the one where parents foot the bill for everything. Not being critical of anyone that does but I sure don't see where I have injured my sons by making them earn it themselves. What I did do was give each of them a copy of The Total Money Makeover and made sure they didn't major in some worthless degree program that would not allow them to see an ROI for the money spent. When one of my sons looked me in the eye and said "dad it feels good knowing I got this on my own" I must say I was pretty darn proud.

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munemaker
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Re: Will you pay for your kids' college/graduate education?

Post by munemaker » Sat Aug 04, 2018 10:25 pm

bampf wrote:
Sat Aug 04, 2018 10:07 pm
Without skin in the game, there may not be a sense of ownership.
Nice concept, but skin in the game doesn't have any meaning to most college students. They do not understand the value of money. Otherwise, all these students with massive student loan debt who have the most skin in the game would be the most successful students and get the best jobs when they graduate. Unfortunately it is often the opposite.

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Re: Will you pay for your kids' college/graduate education?

Post by Nate79 » Sat Aug 04, 2018 10:30 pm

Yes, we are planning for 4 years of in state college. I believe saddling your kids with student debt is a horrible thing to do and parent plus will not even be an option. Skin in the game instead will be a thorough understanding of the cost of college, how she can contribute to both controlling cost and contributing, along with understanding we are paying for a degree that will lead to a career.

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camillus
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Re: Will you pay for your kids' college/graduate education?

Post by camillus » Sat Aug 04, 2018 10:37 pm

munemaker wrote:
Sat Aug 04, 2018 10:25 pm
bampf wrote:
Sat Aug 04, 2018 10:07 pm
Without skin in the game, there may not be a sense of ownership.
Nice concept, but skin in the game doesn't have any meaning to most college students. They do not understand the value of money. Otherwise, all these students with massive student loan debt who have the most skin in the game would be the most successful students and get the best jobs when they graduate. Unfortunately it is often the opposite.
I think when most parent say "skin in the game," what they mean is that they will do their best to have the child actively engaged in succeeding, perhaps with rewards or consequences depending on effort.

Massive student loans for unmarketable degrees seem to result in a lack of active engagement or understanding what's going on.

spammagnet
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Re: Will you pay for your kids' college/graduate education?

Post by spammagnet » Sat Aug 04, 2018 10:40 pm

acegolfer wrote:
Sat Aug 04, 2018 7:16 pm
I'm curious how much will you support your kids. ... If you are supporting, are you also paying for other expenses?
DW and I were both in the first generation of our families to go to college. We were able to attend only because we got need-based financial aid, minimal loans and family support. (I certainly wasn't anywhere close to getting an academic scholarship.) Both of us benefited immensely from that experience.

We had plans to provide our kids with a full ride to a state university, out of our earnings and savings. If they got into a private school, great - we'd still pay only the state university rate. They'd have to come up with the difference. As it turned out, both earned very generous academic scholarships at a respectable state university.

We provided additional living expenses as needed (including a decent used economy car) and didn't require them to contribute. The older one did occasional babysitting gigs for some pocket money but the younger just didn't spend much. Their undergrad educations cost us far less than we planned, so we were/are willing to support their graduate education.

We provided living expenses to #1 who graduated recently with large 5 figure loans. Now being as a licensed health professional, she has an income that justifies the expense. The loans won't be a burden, assuming she focuses on early payoff. #2 graduated from undergrad a year early, taught for a year in public schools and plans to work another year for experience. After that he'll return to our home town for a graduate degree. He may attend part time so he can work full time. His employer will pay all tuition. He can support himself so we'll pay all other school expenses up to approximately the same level of support we provided #1. He can finish with no debt.

Other families have a different view of if or how to pay their kids' school. Our kids don't need "skin in the game" to apply themselves. They're both smart, motivated and organized, and have a strong work ethic. Both have held leadership positions in a number of organizations in their school careers.

Our generosity is influenced by our being able to offer it without affecting our lifestyle. We're not rich but recognize our good fortune. We're also happy living our modest lives. Other families have more kids, less income, have suffered misfortunes in life, and other reasons for not doing that. But if you have the means to do so comfortably and it wouldn't be wasted on a kid who's not motivated or interested, it seems reasonable to help if it doesn't affect your retirement. Requiring your kids to pay just because your parents required you to pay is something like beating your kids because your parents beat you.

Addendum: we always told our kids that, while college was probably the best way to prepare for a career, we would support them if they took another path. We were clear that they to have a plan and it had to be an organized program (technical degree, low pay during a training program, etc.), not just working menial jobs until you found one you liked.
Last edited by spammagnet on Sat Aug 04, 2018 10:59 pm, edited 3 times in total.

bubbadog
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Re: Will you pay for your kids' college/graduate education?

Post by bubbadog » Sat Aug 04, 2018 10:42 pm

Undergrad is paid for by mom and dad. My two children have plans on attending medical school. Still deciding how much of that cost I am able and willing to cover. The public student loan forgiveness program may factor into this decision.

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Re: Will you pay for your kids' college/graduate education?

Post by Minty » Sat Aug 04, 2018 11:14 pm

We've been funding 529s for a long time, and plan to pay for our kids' college, with them taking reasonable loans. We'll help with graduate school to the extent that we can. All of this is conditional on them doing their part by working hard.
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TravelforFun
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Re: Will you pay for your kids' college/graduate education?

Post by TravelforFun » Sat Aug 04, 2018 11:35 pm

We paid for our kids' in-state undergraduate degrees. Their employers paid for most of their MBA costs.

TravelforFun

UnitaryExecutive
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Re: Will you pay for your kids' college/graduate education?

Post by UnitaryExecutive » Sat Aug 04, 2018 11:53 pm

Yes- it's a core value on my father's side of the family that the parents will provide a fully-funded college education to any school the kid wants to go to so that the kid starts life off debt-free and with a degree.

Osprey
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Re: Will you pay for your kids' college/graduate education?

Post by Osprey » Sun Aug 05, 2018 12:01 am

We paid for our kids’ college education. One went to a small private college which we felt was a better fit than the public options. The second one went to a top OOS public university. Both were given our older cars upon graduating. They both graduated and are both thriving. Having enabled them to follow their dreams has brought us much joy.

HereToLearn
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Re: Will you pay for your kids' college/graduate education?

Post by HereToLearn » Sun Aug 05, 2018 12:11 am

bubbadog wrote:
Sat Aug 04, 2018 10:42 pm
Undergrad is paid for by mom and dad. My two children have plans on attending medical school. Still deciding how much of that cost I am able and willing to cover. The public student loan forgiveness program may factor into this decision.
Are your children in college already? If not, they may want to look at full tuition scholarships to defray the cost of U/G so that money will be available to put toward Med School.

kevdude
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Re: Will you pay for your kids' college/graduate education?

Post by kevdude » Sun Aug 05, 2018 12:49 am

We've told our two kids (entering 11th and 8th grade) that we will pay for highest cost state school, currently University of Washington. If they happen to get into a top out of state school, we may still pay full cost. Will cross the bridge if/when it happens. Also anticipate we will be paying full retail unless they receive any merit scholarships. We have said that grad school will be on their dime, but I imagine there would be some assistance on our part if they pursued this.

daveydoo
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Re: Will you pay for your kids' college/graduate education?

Post by daveydoo » Sun Aug 05, 2018 2:47 am

HEDGEFUNDIE wrote:
Sat Aug 04, 2018 7:41 pm

S&P 500 grew at 14% CAGR over the same time period. If you are wealthy enough to be paying full freight, you surely benefited from the stock market as well.

I don’t see a problem here.
I may be an outlier but I view these as unrelated phenomena. I don't expect the cost of my cars or my food to increase commensurate with a record-setting bull market. "Surely you can afford it" is an unpalatable justification for any price hike.
"I mean, it's one banana, Michael...what could it cost? Ten dollars?"

chipperd
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Re: Will you pay for your kids' college/graduate education?

Post by chipperd » Sun Aug 05, 2018 4:07 am

We pay for most of our kids' college expenses, but they pay 10% to have some skin in the game

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TomatoTomahto
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Re: Will you pay for your kids' college/graduate education?

Post by TomatoTomahto » Sun Aug 05, 2018 6:09 am

blessed wrote:
Sat Aug 04, 2018 9:11 pm
Yes, I did pay for all education and all living/other expenses while they were in college. In my case it was my two nieces and they both went to expensive private schools for undergrad with one of them also finishing grad school. I should have made them choose a different more cost-effective route but because of what they've been through in life I wanted them to have the school of their choice, not the wisest financial decision but I don't regret it. They came out of college with no debt, great educations, and each has a gently-used paid-off Honda that should easily last another 10 years. They're both doing really well now and seeing what they're becoming brings my heart a joy beyond description.

The result is my net worth isn't where it should be right now for someone with my household income. Fortunately, both of our incomes are very stable and we can very aggressively plow money into our investments and get back to where we should be.
I often say that some Bogleheads know the price of everything, but the value of nothing. You are the blessed other side of the saying.

For us, halfway through paying full freight for 2 (and previously paid for 2 from first marriage). Great ROI. Recent graduate knocking it out of the park.
Zero Net Carbon by 2019.

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