Being a Target - "College the Poor Kids" Way Follow-up

All I can say is wow! Today my traffic exploded to where at 9am this morning I had my biggest day ever all ready!

This is all due to the coverage by msn's MoneyBlog on my piece "College the Poor Kids Way." It obviously stirred up strong emotions as I thought it might.

First off, regardless of your opinion thanks for visiting! I really appreciate anyone who has clicked over to see more about the blog and perhaps read a bit more. If you like what you are reading, or just what to be notified to when I might annoy you again, sign up for my RSS Feed. It is free, and if you signup using your email account you could win FruitfulTime TaskManager software with a MSRP value of $50!

Now for a quick follow-up to the posting:

Some background on me, as some believe this is driven by my background:

• Paid for College 100% by myself, but lived with family (Aunt and Uncle). So no room and board costs
• Parents couldn't afford support other then moral, which was great!
• Worked at minimum wage jobs in LA - Pizza place, Music Stores etc..
• Wife did same
• $150k/yr+ Income - Not a brag, just some said it couldn't be done if you paid your own way
• Just turned 39...so not a late baby boomer that doesn't care
• Don't drive an expensive car
• Nice house, but we can afford it. Bought our first house at 35.
• Support our kids, play with them, at every game, every ballet show. Made decision 6 years ago that wife would stay at home to offer even more support to them
• Kids aren't brats...most of the time :)

I think that answers most of the questions asked.

There was a ton of great input given and great arguments made on both sides of the table on whether or not kids should pay their own way through College or not. There was, for me, great middle ground pitches made on partial pay, tying it to grades, only paying for classes of an appropriate major (ie no Klingon 301!). Regardless of your personal decision, I say, do what's right for you and your kids. Even if you want to pay 100%

One thing to consider for those that were pretty adamant that I was Hitler Jr w/Cheese for not paying 100%: Where does the chain break? College only? I can make your same case for a down payment on a house. And beyond...

Even with this dip in home costs it is very tough to buy a house on a decent starting salary, say $40K in a decent sized city. A $200K house would need a $40k deposit (to be at 20%). Maybe I should do that for the kids? I want them in good housing and living at the level that they did with us. It would be even more if I wanted them to be in a bigger house more like where they live now. Not even taking about furnishing it either.

What about when they are starting subsidizing a bit of their salary? Johnny is only gonna make $40k to start, which is tough. I could supplement another $20k and make it easier on them to not get loaded into debt.

I know this thinking loses people with each step, but at some point kids have to start living their life and not just be an extension of us. Is that point 18, 22, 30?? Not sure, but it probably is different for each kid.

As I said before; Thanks for visiting and come back often!

(picture from fotosearch)

College the Poor Kids Way

Mrs. Micah featured a post recently about a sister who was talked into co-signing for her sister's student loans. Not surprisingly this did not turn out well. But it raises an interest point. Many of us are ill prepared for our financial life when we go off to college, or on our own.

Oh sure we think we are. We get signed up for credit card, and maybe even get a FREE t-shirt for signing up! We probably then only use the card for emergencies...no pizza or beer left in the house! Taking our girlfriend out! Maybe even rent once or twice.

Pretty soon that one is maxed, bummer, luckily you get a second one to help pay the first minimum payments. If you are lucky this ponzi scheme keeps up until you leave school and get a real job. Now you are saddled with big student-loans and credit card bills!

Some kids are "lucky." Their parent fit the entire bill down to spending cash and help with those pesky Credit Card bills. They want their kids to have the best start possible. Unfortunately, either situation sets up for potential failure. You either engage in the workforce with pre-made debt chains, or no real sense of how life works.

Our kids won't be like this. First we have made a conscience decision NOT (and I smell the angry emails already) to pay for their education past High School. We will help them with 100% free rent and food, in exchange for chores if they chose to go somewhere close.

Why oh Why you cheap *#$^ !?

Every single kid we knew that went to college on the parent express left school 100% unprepared for real-life, if they graduated at all. They took basket weaving and Klingon 301. They never worked the menial jobs that give you an appreciation for honest work, honest wages.

No I don't want our kids saddled with an insane amount of debt leaving school either. I would rather see them take 5-6 years to graduate and come out 100% paid.

Everyone that I know paid their own way had it hard. But they studied hard and really wanted it. Guess what? When they did graduate they had a huge sense of accomplishment! They, on their own completed one of life's milestones! What independence!

I call this: College the Poor Kids Way!

To do this you can't just throw then in the deep end at 18. You have to make sure they know what they need to succeed in the world. The whys and hows of Credit. The basics of budgeting and money management. Even a bit about investing.

Their first real investment will be in securing more income by having a college degree. Their investment will be in themselves! And what a great investment to make!

In conclusion:

Don't think for a minute that this means we don't value a college education. There are way to many studies that show the value of post-High Scool Education. We just believe that giving the lifetime gift of independance, through life experience, is worth 5-6 tough, but managable years.

(please throw tomatoes..they are softer!)