Should Kids Pay Their Own College Tuition?

Posted September 24, 2010

2 |

I found this helpful Thank You! Your vote will be tallied soon!

Posted Friday September 24, 2010 by Jackie Morgan MacDougall

Change is good.

Take autumn, for example. For those who enjoy a new routine and attitude, it's the perfect season. Sweaters are pulled out to enjoy the cool and crisp fall mornings... there's a new appreciation for nature, ordinary trees barely glanced at all year suddenly become inspiration for long drives and weekends in New England. But for millions of college students, fall is about a different kind of change -- specifically the chunk of change a new school year will cost 'em.

According to the College Board, who surveys 3500 colleges across the country before releasing its Trends in College Pricing report every fall, a four-year public college for in-state students could run around $20,000 annually, over $30,000 for out-of-state students. *Based on tuition, fees, room and board. You can expect to shell out quite a bit more at a private college, almost $40,000 a year.

Holy smokes! Are parents supposed to pay all of that?

Well, that depends on who you ask and when you ask them. Take Maggie, for example. Her parents weren't able to pay for her college education so she took it upon herself to not only get her degree, but go on to law school. "I never thought it was a problem that I should have to get my own loans and pay for it myself." But now Maggie sees things differently, years later still spending much of her family's dual income to pay back student loans. "[Parents] who choose not to [pay for college] should know that they are putting their kids at a big disadvantage," Maggie says. "I know a lot of people who are starting their adult lives and careers in a much better position than I am, who are able to start saving for retirement, buy a home, and save for their kids because their parents paid for college. Meanwhile I'm struggling just to pay the bills and can't even image being in a position to buy a home, much less save any money at all because my parents couldn't afford to pay for college for me."

In an article in Daily Finance, Zac Bissonnette, a college junior and author of Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching off My Parents, says paying for college shouldn't be parents' priority -- not burdening kids during your golden years should be. "As much as they love you, your son and future daughter-in-law would probably prefer that you not crash on their couch because you took out a HELOC (home equity line of credit) to pay for his education and then couldn't afford to make the payments."

6 percent of parents withdrew money from a 401(k) or IRA to pay for college last year, something that Bissonette strongly suggests moms and dads avoid at all costs. "Restrict your financial support of your kid's educational expenses to sacrifices in the present, rather than pledges to a lender or depleted retirement account that you will make sacrifices in the future." In short, skipping meals out or avoiding the temptation to buy yet another pair of shoes in order to save -- GOOD. Taking out loans or pulling money out that you need to live on later -- BAD.

Robin, mom of two boys, agrees and questions the motives of some non-saving parents. "We have 18 years to save, so, in most cases, there is little excuse not to have college funds for your kids. I think too many people these days get too caught up in the moment--wanting expensive cars, bigger houses, expensive vacations, etc. and they put saving for college at the bottom of the list."

For Melissa, the college fund is there, but that certainly doesn't guarantee that her three kids will actually get the money. "Only if they are deserving, work hard, get good grades, stay out of trouble during high school and plan on continuing with these same ethics in college. If they think college is just a place away from the folks where they can 'pa...rty', stay up all night, sleep in and ditch class, then guess... you're on your own!"

For me, the good news is that my kids don't start college for 12 more years. Of course by then, what would cost us a quarter of a million dollars right now is expected to increase 6 percent per year. YIKES! I better start looking to make more money -- fast.

I wonder how much I can get for writing this post...
 

Jackie Morgan MacDougall is a TV-executive turned parenting blogger who lives a crazy life with her husband and three small kids. Her dreams of climbing the corporate ladder have been replaced by the dream of one day having a nap. You can find more of her musings at The Silver Whining.

Related Articles on Family.com:

How Much Should Kids Know about Family Finances?

How to Set Up a Family Budget

Teach Kids about Money