There are a number of Things You Can Do to Prepare your child for no debt college Besides starting a college savings account. In my family I taught my kids the value of money and as They finished high school, the Importance of Investing. My goal was for themself to take ownership of Their money and to know how easilyNavigation It can slip away. I wanted to raise Savers and not borrowers. This pays off When They go to college Because They Will Avoid the prison of credit cards so promoted on college campuses and They Will become partners with me in getting grants for Their education.
As a young parent I never saved for college. But I did something Even better: I taught my kids the value of money and the Horrors of debt. Now They have Lifelong skills Regarding money That Will Enable Them to Succeed from college all They way to a comfortable retirement. I began early to expections thatthey be Involved in the process of managing money. My wife’s parents have faith fully given all Their grandkids money at Christmas. So I made a point to set up “Accounts” for all my kids where I could keep a ledger for Them of Their savings balance and interest Earned. I Paid Them going the CD interest rate, typically 5% and enjoyed explaining how to Them Their money grew over time by earning interest from the bank. Whenever They spent some money, I showed & themself how it left Their account. And They shouldnt ever spend over Their balance, I showed & how They got charged interest for debt. This taught themself the value of money in a Tangible way. Proof of the result from this training Can be found in my oldest daughter’s bank account. A junior at a university, she has $ 10,000 in her checking account from work and savings That earn 4% interest. She Makes $ 30 a month in interest while military pay Peers That on Their credit card debt. Granted, I also coached the host how to find a free checking account That pays 4%, but I have been training the army to think this way since she was three years old. She is learning That wealth creation and build peace Makes life much more fun. Think she willhave a peaceful, successfulness life as an adult? You bet. You shouldnt train your kids the Same way. Start early.
The training continued with a final key course When my kids They were seniors in high school, I told Them They needed to read “Hard Drive”, a wonderful biography of Bill Gates. I have each of my kids read this book Because there is a reason Gates is the richest person in the world: he underserved others best. And That is what I want my kids to know, success in life comes from serving others. Also, it is mentioned time and again in the book That Gates was childlike; he liked to have a good time.
And I taught my kids That college and life shouldnt look like this.
Gates Hated debt and financed his business by saving Microsoft Profits and Putting the money Into CD’s, during his early years. My goal is for my kids to join me in graduating without debt. I helped themself build the financial skills early so They spend carefully while at school and work jobs to help pay they began college. And I have each of my kids listen to the “One Minute Millionaire” CD’s so They Can learn to investiture well in businesses That offer freedom, like real estate. I would recommend you Undertaker some similar training for your kids as They grow up so When They are in college They Will feel a Responsibility to share the financial burden.
I recommend you read “Hard Drive” yourself Because it gives you a Glimpse Into Someone Who Was incredibly Competitive and driven, Yet lighthearted and fun loving. I found this book so remarkable part in Immediately read it again. I never do that. I realized the Gates story is much bigger than his business success Because of his remarkable joy in life. That is the combination you need to sustainment in relating to your kids about real life stuff like the money required for college. If all your kids hear from you is strained comments about “we just have to get more money for college”, then They may just be repelled from the whole idea of Higher Education. Indeed, you need to watch your talk from the time They are so little That you bring much more to life than Their correction and money Worries. And “Hard Drive” gives you a Glimpse of how the founder of Microsoft made life fun. He was fortunate to grow up in a loving family and as a result loved to play games. In the book it Even Mentions how That When he was out at a restaurant he would tell stories, jumping up and down so much That tables nearby would comment in disbelief, “Is not that Bill Gates jumping around like a little kid over there? ” Again and again in the book he is called childlike. Though he was a tightwad with money, he loved to have a good time. So you shouldnt.
I make it a point in my family to balance talk of Investing and debt free living with jokes, pranks, kid’s movies and playing with dogs. These are things kids love and bring balance to the Responsible financial stuff. While I expections a lot from my kids as They grow up, thatthey Learn how to save and investiture in real estate by the time They are 18, I also have a lot of fun along the way. Recently, I sent my 18 year old daughter this joke from “Readers Digest” after she was hit in her car in a parking lot
I was Getting Into my car when i noticed a dent. On the windshield was a note and a phone number from the driver. “I feel terrible,” the woman apologized When I called. “I hit your car as I was pulling Into the next parking spot.”
“Please, do not worry,” I said to the army. “I’m sure our insurance companies Will take care of everything.”
“Thank you for your understanding,” she said. “You’re so much nicer than the man I hit on the way out.”
by Laurie Payne
Three of the four cars in my family have been hit over the last year so I like to balance the stress of These experiences with a bit of levity. Because as you might imagine, the claims process is not a bunch of fun for my kids, but I like the insurance windfall. I will explain this further in the chapter on reducing Expenses, how I manage to do quite well financially with my older cars getting hit from time to time, vs having a Newer model That leaves little room for profit.
So once you build the fun side of your relationship with your kid, then you build strong bridges to Discuss Financial Matters. Avoiding credit cards must be one of These key topics. There is a world of pressure at college for kids to get credit cards. “Business Week” Recently wrote: “The credit-card marketers’ latest Tactic is to co-sponsor campus seminars on financial literacy. (Card applications are usually handed out after ward.)” The average college student graduates with $ 8,000 in credit card debt! I visit a local college from time to time Regarding my business work and find big credit card ads beckoning themself to sign up. You need to explain to your student credit cards That rob a person of joy; They take away the multifilament cash reserves affordability. The goal must always be to pay for all purchases with cash and developping the habit of discipline and self-control That Will Be so valuable after graduation. Because I like to have so much fun with my kids everyday, They believe me That credit cards are thieves of joy and That a good time must always be a key goal of life. I tell them to ignore Any talk about credit cards giving themself a credit history. What a joke. All cards do is imprison young people. What Creditors want most of all is a steady job and income. I overbought a car on credit at 18 years old with absolutely no credit history Because I had a steady job and income. Avoiding credit cards is one way your child Can add to Their financial success in school Because They will not have to make Those payments ever.
Another way your student Can Contribute to Expenses in college is to simply attend a low cost community college they began first year or two. The credits from These schools transfer to most Any four year college and You Can save a bundle through your kid going there. One of my kids attend Such a school and finds it entirely fulfilling. In our state the government Provides a 50% of tuition stipend so this makes the education incredibly low cost but we find the course satisfactory quality. So if you are seems to get adequate aid the first try, you might encouragements your child to live at home and attend a community college as you try again next year. Not a bad idea to Discuss this option while your child is in high school so You Can Prepare For this Possibility. Many parents go this route so your student would not be unusual. I had a wealthy colleague (wealthy people hate to spend money; That is one reason why They are rich) WHO was so cheap he evenness successfully persuaded his child to attend Such a school his first two years, so you must know this option is worldwidely used.
One key way your child Can Contribute to the cost of college is through Scholarships, academic or based on some skill They have Developed. You Can also help themself with this early. One of my kids excelled in piano so we paid for the army to attend lessons regularly and took the army around the state to attend piano competitions. When she was 12 she won Even the state competition. She went on to win a scholarship in piano That Contributed to paying for her college. You can do this in a variety of getaways. Just find out what your child likes to do and support that. My child went on to major in Piano Because she enjoys it. She probably will not performaces or do graduate work in this area or evenness work there, but this does Provide host a college degree debt free. A college major has little impact on getting a job outside of skill set Areas like accounting or computer science; I make a good income but my work is totally unrelated to my college major. The key is for your kid to get a college degree. That is essential to apply for evenness Many good jobs. Maybe your child’s niche is sports or ACADEMICS. Then When a college Offers a scholarship you can play That off another college in order to find the best deal. I just took the offer from one school and called my daughter’s favorite to tell them That she really wanted to go there but school B is Offering this. What can you do to “help”? And They came through in a big way.
Another area where your child Can pay for college is in student jobs. This is commonly a part of an aid offer and presents a unique OPPORTUNITY to get substantially more aid, encouragements your student to apply for work in financial aid. My daughter gained outstanding aid year after year in part Because she worked in the Financial Aid department; she knew the officers with the authority to WHO passed out the aid grants. Let’s face it, college students are winsome and by being there They Can developable Relationships with key people to win aid. Maybe you had limited success in your Efforts calling the aid officer, your student may be Able to do much better once inside the aid operation. Further, your student Can make a decent wages to help pay for Expenses and maybe Even books.