When I started college, the price was very reasonable – about $1,500 per semester. My first 2 years were paid for with scholarships. My last 2 years, I received financial aid. I graduated from school with no student loans. But times have changed, and things are no longer so simple for young people attending college today. I fear for my children’s financial futures. They shouldn’t start their adult lives straddled with a mountain of debt.
I frequently ask myself if we’re saving enough for our children’s education. The cost of college has been steadily rising, and at this point, it’s completely unrealistic to even consider the notion of paying for 5 college degrees. But even so, we would like to be able to help them. My goal is to give each child $15,000. That is a descent sum of money, but it won’t get them far in today’s world. Currently, that will pay for 1 year at our local University.
As a parent, it kills my soul to imagine my children struggling. Since we can’t give them a free education, I want to make sure we guide them in the right direction. My oldest child is 13. We’ve already been talking about her plans for college. I have told her multiple times that attending a community college to finish her general studies would be the smartest plan. My hope is that John and I can pay for the 2 years of community college, and still have a little left over to help with her first year after transferring to the university.
I am also going to encourage my kids to apply for scholarships. I applied for every scholarship I was eligible for during high school. And it paid off! I was awarded numerous scholarships. This money help keep me motivated. I distinctly remember feeling ambivalent about college during my first semester. I wanted to go to college, but I was so tired of school. Despite my lack of desire, I stuck with it because of the free tuition. I am so glad I did. I truly believe that education breeds confidence. And I want my children to know that they are capable of doing anything.
So how does our family save for college? Starting at birth, we save $10 per week for each child. At age 13, we up the amount we save to $25 per week. I wish we could do more. After paying off our mortgage, I strongly considered trying to save more for the kids. But ultimately, I know that saving for our retirement is even more important than paying for college. I’m sure you’ve heard the saying, “You can get a loan for college, but you can’t get a loan for retirement.” We don’t want to be a financial burden to our children in the future, so retirement savings has to take priority over college savings. For now, we are going to continue plugging along with our current saving plans.
Like most parents, I want my children to follow their dreams. However, I am committed to helping them make smart financial decisions. My kids are not going to graduate from college with 6 figures worth of debt. We’ll face this financial obstacle together, and we’ll make smart decisions with our money.