Re: Need a category called, "Rebuildin
g Your Savings"
11-11-2012 01:36 PM
AND paying for college with cash is a must. There was never any thought otherwise. Our gift to the kids is to have up to four years of college and come out (hopefully) with a degree and no student loans or debt that we know about. It justs we are paying cash as we go (ouch). The youngest started a tuition high school which was not in our budget or plans. So we had to start paying for him four years early and we didn't have the cash saved up to pay for that and four years of college. (We had four years of two kids in schools that required money.) I hope that makes sense.
Thinking a bit different here. Instead of saving to assist the kids with paying of the student loans/education, why not assist them by helping buy their first property. Perhaps by providing the down-payment. Then let your kid(s) rent out part of the home they don't use to use as an income source. This teaches them how to manage a home.
If you have money left over THEN contribute to the tuition. By forcing them to pay for their tution it puts the onus and decision making on them to either get a part time job, or save up from their summer employment and make their own discretionary spending decisions. This empowers and teaches them they have the responsibility to budget plus after their 4 years of school they have a tangible asset they can either keep for their residence OR sell and relocate.