When you look at your kids growing up, what do you want for them? Limitations, mediocrity, unnecessary stress...indentured servitude?
What's the old mantra?
Go to school,
get a degree (or two)
Get a good job.
Often this is through the uses of student loans. (The forbidden fruit I have partaken)
The number of education loans has currently our paced consumer credit debt, and soon many more will be in bondage. It is sad to see how many in the middle class are digging ditches for those they love to climb out of. Is this what love looks like? I thought love pays for debts, not encourages them.
I suggest while your kids are young, you rethink how you set you kids up from life. Take a look at information shared in FORBES magazine this summer about how the rich keep their kids in higher financial positions than the average person does. Remember its not about quantity of life, but quality of life...and how you steward over what you have. Part of that is looking out for the future of those you care about, especially the children.
From FORBES (how to make you kid a millionaire)
1) Don't over educate.
That masters degree your son or daughter wants my be a bad investment (Laurence Kotlikoff Boston Univ) "Pursue academics if you love hitting the books, Don't do it for money"
2)Find a cheap B.A.
More prestegious univiersities don't mean automatic success, personal ambition and drive do. Lower the cost of Education as much as possible, with grants and scholarships. The new strategy is going to community college you 1st 2 years
3) Fund a ROTH
TELL YOU KIDS YOU WILL MATCH EVERY DOLLAR THE EARN WORKING, PROVIDED THAT YOU DOLLARS GO INTO A RETIREMENT ACCOUNT THEY PROMISE NOT TO TOUCH FOR 50 YRS. Then be blessed by tax code preference and the POWER OF COMPOUND INTEREST.
4)Shun credit card debt
5) Shop for a 529
6)Give them Grandpa's IRA
7)Start them YOUNG
Not small allowances, but larger ones and require them to pay for clothes and other things.
8)Give Stock
9)Put You kids in a house
10)Hire you Offspring
