It's what everyone is talking about at our age. Do I have enough money to do this? Specifically, COLLEGE. As well are all aware, college is expensive. I hear young parents talk of 'putting this money in little johnny's college funds account'. But is that the best financial option at this point? I found an article that gives reasons and benefits from NOT saving money for your children's tuition costs.
This article doesn't diss on helping your children through college, but it implies that over time, things may change and that money may be put to better use toward something else. The article mentions 'there isn't a loan for retirement'. -- which is true. Their are unexpected expenses throughout ones life that that money may need to help with. I think saving some money can be done, but if a family is suffering financially (especially with the economy in the situation it is) is it worth putting the money in the bank? Also, what about retirement? That is money you will be living off of when you've decided to take the plung into retirement. When you think about the big picture, it seems putting these important dollars in the bank to stay for 18 years seems kind of silly.
It also makes a valid point-- how much appreciation will be shown once someone goes to college-- their parents paying for their tuition VS. the student paying. Does it seem as if a student making their own way through college would take it more seriously than those who do not?
From Chapter 5 in the textbook, the authors describe intrinsic and extrinsic motivations. Intrinsic refers to engaging in one's interests and to one's capacities -- to seek out and master their own personal challenges. Extrinsic motivation comes from environmental incentives-- such as money, awards, etc. In this situation, parents are using extrinsic motivation early in life where it may not be necessary. They want the best education for their children, ultimately wanting a diploma, aka a better than average job for them. These extrinsic goals may need to be put aside, even if they are in their child's best interest. If the person going to college has the desire to fulfill their intrinsic motivation by completing their desired level of education, dont you think they'd find a way to complete school regardless?
I thought this article was interesting, because I believe their is a lot of stress put on parents of children who want to continue their education in a college or unversity. I'm not siding with either, because when parents help with tuition it takes a lot of stress off the student. But should the parents put their own financial situation in jeopardy to do so?
I really liked this article, thanks for posting it. I wish more parents would read this. I know my parents should have. My parents both worked full time while I was growing up (and still do) but were never able to put money away for my siblings and my college funds. I am the youngest of four any my parents always felt a financial burden. If they would have read an article like this I think it would have made them rest easier and not worried so much about us. Of the four I am only the second to go to college, two of my siblings chose to go into careers that paid for their schooling or training and my sibling that did go to college graduated with a double major and has been in the working work for over seven years and isn't even working at a job that requires a degree. My parents wanted to invest in our futures so they chose to help pay for our schooling by taking out parent loans, even though it strained them financially. They are still paying off my sisters schooling, that she isn’t even putting to good use and they are paying for my schooling instead of putting their hard earned money away for their retirement. When I was first starting school I was glad my parents were willing to help out financially, along in many other ways, but as I am older now and see the financial situation they have put themselves in, I wish they would have made me taken on the financial burden myself, and then maybe I would have put more effort in as well. It would have been a win, win situation in my book.
Personally, I think parents should save what money they can for their children's future. That money doesn't necessarily have to be tied down to a specific college fund but they should save money. It seems that the parents who are the most likely to set up college funds and save money for their children are the ones who can afford to do so and the ones who value education. Therefore, their children are more likely to value education and want to go on to college and possibly higher meaning these parents probably couldn't save enough money in the 18 years to support one child's education let alone multiple children. My mother has significantly helped me out with college. She has taken on the burden of more student loans than I have taken and she just paid hers off my senior year of high school because she sees me as a good investment. We are the future and money is just a tool. Something else I'd like to add is in regards to the articles commentary on community colleges. It seems that Ms. Herigstad believes that a community college's education is the equivalent of a university's education and as I have attended classes at two different universities in two states and at two different community colleges I can assure you that they are not the same. It may be cheaper to attend a community college for a couple of years but it felt like a regression to my early high school years considering my latter years were filled with Advanced Placement and weighted classes. In the end, it is all relative, how much money your family has available when your growing up, how many kids are in the family, single parent household or not, is education valued or not, there are many variables to consider when deciding to save money for a child’s education. However, I believe a parent cannot go wrong by investing in their child’s future even if that money is saved for educational purposes and the child chooses to go in another direction the parent can still use that money as a teaching and investment tool.