We start by sharing our college stories, which were very different from a financial perspective. Maggie went to the University of Georgia, had a full state-funded tuition scholarship, was given a smaller amount of money from her parents to help cover costs, and worked multiple jobs. Mike went to the University of Michigan, paid full-price out of state tuition, was given a very large amount in college savings from his parents, and did not work though he played on the lacrosse team which was a big time commitment.
In this episode we discuss:
- Is college worth it? Do you need to go to college to be successful in life?
- Is there any benefit to going to a more expensive or higher-ranked college?
- You should trust your gut and make decisions based on the reality of your kid(s) and their capabilities and unique needs. Even consider the ROI of a college investment and what your child is planning to do with that degree after college.
- How should you pay for college? There are scholarships, credits your kids can earn while still in high-school, loans, kids working during school, and more.
- How can you plan for it now? Save early by starting a 529 plan. Contribute as much money as possible as early as possible, so that it has as much time to grow as possible.
- Mike explains the pros and cons of choosing your own state’s 529 account vs. another. 529 accounts from different states and how that all works.
Our top 3 takeaways for this episode:
- College is worth it, so plan for it.
- But make sure the specific situation is worth it for your child: rank of school, cost of school, benefit for the kid, cultural fit, ROI of the cost of their education vs. what it’s going to help them with in life.
- Don’t saddle your kids with debt. This doesn’t mean you have to pay for your kids college, but you do owe it to them to educate them about their options, trade-offs, and what debt means.
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Follow friends on FIRE
Leave us a voicemail or text us: 404-981-3370
eMail us at: friendsonfiremm@gmail.com
Visit our website: www.friendsonfire.org
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Other Links
Maggie’s Blog: Mostly Minimal Life
Mike’s Book: Your New Relationship with Money