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That article doesn't put in compound interest for the 1000 saved. But it is a pretty good idea and different way of thinking.
Probably best article I've ever read on Huffingsome Paint
http://www.huffingtonpost.com/jeff-b...b_2672873.html
That article doesn't put in compound interest for the 1000 saved. But it is a pretty good idea and different way of thinking.
I recently had a small windfall, so this article is both timely and thought-provoking. I have one kid in 3rd grade and one in 6th. Admittedely, I haven't saved a dime for their college (assuming they are even going). But, is it really money well invested? Why wouldn't the things listed in the article be even better investments -- even if they aren't as quantifyable as compounded interest?
wouldn't present this as a forking path.
the two options aren't mutually exclusive; one can strike a balance between prudent saving and participation.
Hard question to answer at that age. If they develop interests that require formal training, then college may be necessary. The kicker is you have to hedge against that uncertainty by racking back cash now in case they do want to pursue college. My folks had a nice pile put back for me. I went to school on a full scholarship. They bought a motorhome. lol
True. Yeah I got a 1st grader, Prek and a 2 year old and I'm just starting to save. They already have their college paid for but I still want to have something for them. I might do something like in the R. Kyosaki book when they turn 18, where they get the money to invest in something.
I went to community college and then UTSA on part-time work and student loans. Would I have been better off, had I had my ride paid for? Who knows. I don't have anything but my own experience to go on. I would say, that since it took me longer to graduate, and I was an older student, that I valued it more.
Cant really fault that POV, tbh.
My mom did something similar. Well she spent it on bills when times got tough. I went to Jr Co and got a full ride scholarship afterwards so only had like 3 grand in debt I had to repay.
Well, like I said, it was a small windfall. I could put something aside, but I doubt it would be that much in 6-10 years.
I'm trying to do both. The wife doesn't tend to trust babysitters, so we bring our kids to restaurants, hiking trails, movies, museums, etc etc. And being in the military, I'm pretty sure he'll get to see a decent amount of the world. Also, I'm not telling my kid about it... I'm going to make him think he has to do it on his own, and if he chooses a good career, and gets good grades, then MAYBE I'll tell him about it.
I think I had around $10K in loan debt, but I graduated in 1994. I still don't get why students would bury themselves in 6-figure debt over a liberal arts degree from some prestigious university.
My mom did something similar. Well she spent it on bills when times got tough. I went to Jr Co and got a full ride scholarship afterwards so only had like 3 grand in debt I had to repay.
My wife is a military brat, so she got to see a lot of Europe.
The wife said she had a hard time getting the loans because they base everything on your parents' income even though she did it all by herself. Three jobs, four year degree in 4 years and car payments.
I think having your education payed for is a dangerous situation. Especially if said kids also have a savings account funded by someone else.
I didn't know that student loans were based on parents' income. If that's the case, I'm surprised I was ever loaned any money. Might it also be based on the type of degree you are getting? I know people that were loaned tons of money to attend med school.
Federally backed loans and fafsa go by your parents until age 29i think
..and the costs of the school you are attending....not having anything or very little saved is a bigger problem in the U.S.
Emmm...yeah, unless I'm at Apple bees blow me.......kids at movies not rated G ain't cool..I'm trying to do both. The wife doesn't tend to trust babysitters, so we bring our kids to restaurants, hiking trails, movies, museums, etc etc.
True. Med students usually get a waiver based on future potential.
This isn't entirely true. If you are a dependent student then they use your parent's income information for Pell grant qualification and you are eligible for 5500 for your freshman year (6500 for sophmore and 7500 for junior). You are a dependent student if ALL of these are answered with "False".
You were born before January 1, 1990
You are or will be enrolled in a masters or Doctoral degree program at the beginning of the school year
You are married on the day you file your FAFSA
You are a parent
You have dependents other than your spouse who live with you and who receive more than half their support from you at the time you apply
Both your parents are deceased (or were until age 18) a ward of dependent of the court
You are currently serving on active duty in the U.S. Armed Forces for purposes other than training
You're a Veteran of the U.S. Armed Forces
You were a foster child after the age of 13
You are an emancipated child as determined by a court judge
You are homeless or at risk of homelessness as determined by the director of a HUD approved homeless shelter, transitional program, or high school liaison
Also, if I remember correctly, you can qualify for independent money as a dependent student (9500 for freshman, 10500 sophmore, 12500 junior +) if your parents apply for a private loan and are denied and show a proof of denial.
Worst case scenario, you get 5500 on stafford.
The waiver that Med students get isn't based on parents at all. their waiver is for lifetime loan limits.
57,500 for Undergraduate
138,500 for Graduate or professional
224,000 for Health professionals
It aggregates too. If you spend 50 on your undegrad then you have 88500 for your graduate degree.
Ok, just read the article. I like it. I went to Germany for a year as an exchange student when i was 16 and I would say that it was probably one of the most valuable years of my life (learning wise)
Both parents with no post-secondary education
Single-earner household
House in the 'burbs
Summer family vacations the norm
First family member to graduate college & it didn't involve tremendous financial sacrifice/debt/lifelong planning.
I'm glad I grew up in such a period (which wasn't that long ago)
I think the above is the case to be made.
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