• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Photo From Shutterstock

WOMEN RETIRE Photo From Shutterstock

Photo From Shutterstock.com

  • WOMEN RETIRE: HOW TO BUILD THE WEALTH YOU NEED TO RETIRE THE WAY YOU WANT
  • ABOUT ME
  • Contact
  • Blog Post Index
  • Privacy Policy
  • Disclaimer
  • INVESTING VIDEOS
  • FINANCIAL STRESS VIDEOS
  • RELATIONSHIPS VIDEOS
  • FINANCIAL PROBLEMS VIDEOS
  • SIDE HUSTLE VIDEOS
  • INCOME VIDEOS
  • FINANCIAL SECURITY VIDEOS
  • FINANCIAL FREEDOM VIDEOS
  • SPENDING VIDEOS
  • TEENS VIDEOS
  • OTHER GREAT WEBSITES

COLLEGE CAN CHANGE EVERYTHING (FOR PARENTS)

May 31, 2021 · wpx_womenret · 60 Comments

By Craig Erwin, Ph.D.

At a wedding yesterday, I spoke to a man with three daughters about how expensive it is to raise children. I joked that Mr. Smith’s (not his real name) three daughters would cost him and his wife a fortune (compared to my two sons) because he would obviously need to pay for three weddings for such beautiful daughters. But as we talked, I learned that some of his decisions and actions were likely to have an even bigger financial impact on the Smith family.

Mr. Smith teaches at a state university in Connecticut, like I do, which should enable him to save a fortune on college costs, because his daughters are able to attend any of four state universities or any of twelve state community colleges tuition-free. My older son, Stefan, is currently attending a private university tuition-free because his mother works there. Stefan lives at home and drives one of our old cars, but, since he has a job, the most noticeable expense Stefan’s mother and I have had during his two years at the university are his student fees, which amount to roughly $1000 per semester.

So, which state university is Mr. Smith’s oldest daughter attending? The University of Wisconsin in Madison. Why? His daughter not only refused to live at home and commute; she wanted to attend a university far from home, not a local one. Her parents agreed to foot the bill, but gave their daughter an ultimatum; she had to choose a state school, not a private one, to keep expenses down. Unfortunately, in assuming that state schools would be inexpensive, the Smiths forgot that their daughter would have to pay out of state tuition. The total annual cost to attend the University of Wisconsin for a nonresident is $53,613, not the $26,553 that residents pay. Of course, she could have attended a Connecticut community college or university practically free if she lived at home and commuted because there are several Connecticut schools near her home.

Instead of paying relatively little (e.g., daily commuting and lunch costs, student fees, and textbook costs) to send their daughter to a Connecticut school, Mr. Smith and his wife will end up paying $214,452 for four years. And they still have two younger teenage daughters to send to college. The total cost to send three children to the University of Wisconsin as nonresidents (without considering inflation) would be around $650,000.

Many college graduates have painfully high student loan debt, which can take decades to pay off. But transferring the college debt load from students to parents (as the Smith family is doing) is a terrible solution. It means that parents may approach retirement with sizable student loan debt taken on to send their kids to school.

Although the Smith’s daughter is likely to graduate from college with little or no debt, her parents may be saddled with plenty. If they also pay for her sisters to attend the university of their choice, Mr. Smith and his wife will enjoy a much less comfortable retirement than they might have otherwise and may even have to postpone retirement for years. Even without considering inflation (and higher education has seen consistently high inflation for many years), if the Smiths send all of their daughters to schools with costs similar to UW Madison, they will have to fork over more than a half million dollars more than they would have if their daughters had received free tuition and lived at home. In contrast, the average 401k balance in the USA, according to Fidelity Investments, is $123,900, far less than the college bill for just one of the Smith’s children.

If there was an easy way for me to avoid spending a half million dollars, I would jump at it because it could mean a lot more than an extra half million dollars to spend in retirement. If instead of spending a half million dollars on college, you invested it in the stock market over a twenty year period (assuming an 8% return), you could expect to end up with $3,029,622. That amounts to an extra $151,481 a year to spend in retirement (assuming a twenty year retirement). $151,481 is an awful lot of money compared to the average annual social security payment of $18,516 that retirees receive.

A few years ago a colleague of mine investigated why so few faculty at the University of Connecticut have sufficient retirement savings. He found that frequently, instead of having their children attend the University of Connecticut tuition-free, faculty send their children to expensive private schools. As a result, many faculty accumulate student loan debt when they should have be accumulating retirement savings. The end result of these actions is likely to be either delaying retirement, retiring with significant debt, or living far more frugally than necessary in retirement.

Wanting the best for your children is only natural. Of course you want your children to prepare for rewarding careers at the best schools and achieve their potential, but it is naive and short-sighted to fail to consider carefully the consequences of sending your children to expensive schools. It may cost you the ability to retire comfortably and may even cost you the chance to retire at all.

Tweet

EDUCATION, FAMILY, RETIREMENT

NEVER MISS A POST

Lorem ipsum dolor sit amet, consectetuer.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recipe Rating




Comments

  1. http://tinyurl.com/265lzta5 says

    June 12, 2022 at 5:10 AM

    1 star
    I will right away clutch your rss as I can’t to find your e-mail subscription hyperlink or e-newsletter service.

    Do you’ve any? Kindly permit me understand so that
    I could subscribe. Thanks.

    Reply
  2. tinyurl.com says

    June 11, 2022 at 7:14 PM

    1 star
    Hello there! This post could not be written any better!
    Looking through this post reminds me of my previous roommate!

    He always kept preaching about this. I will forward this information to
    him. Pretty sure he’ll have a good read. Many thanks for sharing!

    Reply
  3. tinyurl.com says

    June 11, 2022 at 11:01 AM

    3 stars
    Fantastic beat ! I wish to apprentice while you amend your site,
    how could i subscribe for a blog web site? The account helped me a acceptable deal.
    I had been a little bit acquainted of this your broadcast provided bright clear idea

    Reply
  4. tinyurl.com says

    June 8, 2022 at 7:59 PM

    3 stars
    I do not know whether it’s just me or if perhaps everyone else encountering issues with your blog.
    It seems like some of the written text in your content are running off the screen. Can someone else please comment and let me know if
    this is happening to them too? This might be a issue with my web
    browser because I’ve had this happen previously. Cheers

    Reply
  5. tinyurl.com says

    June 7, 2022 at 9:56 PM

    5 stars
    I have read so many articles on the topic of the blogger
    lovers but this post is genuinely a nice article, keep it up.

    Reply
  6. http://tinyurl.com says

    June 6, 2022 at 11:23 AM

    5 stars
    Your style is very unique in comparison to other folks I’ve read stuff from.

    Many thanks for posting when you have the opportunity, Guess I will just book mark this site.

    Reply
  7. http://t.co says

    June 5, 2022 at 3:00 AM

    2 stars
    I was suggested this web site by my cousin. I am not
    sure whether this post is written by him as no one else know such detailed about my problem.
    You are incredible! Thanks!

    Reply
  8. tinyurl.com says

    June 3, 2022 at 1:41 AM

    3 stars
    I loved as much as you’ll receive carried out
    right here. The sketch is attractive, your authored subject matter stylish.

    nonetheless, you command get bought an shakiness over that you wish be delivering the
    following. unwell unquestionably come further formerly again since
    exactly the same nearly a lot often inside case you shield this increase.

    Reply
  9. Andrewsuelt says

    May 30, 2022 at 9:22 PM

    cialis self life tadalafil cialis and dapoxetine

    Reply
  10. Andrewsuelt says

    May 30, 2022 at 7:53 AM

    generic cialis testimonials tadalafil 20mg best price .99 for cialisis

    Reply
  11. Andrewsuelt says

    May 29, 2022 at 6:29 PM

    viagra cialis levitra trial pack price of cialis 20 mg cialis lilly rezeptfrei

    Reply
  12. Andrewsuelt says

    May 29, 2022 at 3:55 AM

    buy cialis generic version of cialis canadian meds cialis

    Reply
  13. Andrewsuelt says

    May 28, 2022 at 10:55 AM

    buy cialis on line without presciption best price for daily cialis does cialis work

    Reply
  14. Andrewsuelt says

    May 27, 2022 at 8:47 PM

    new cialis commercial 2010 cialis geneneric cialis aus

    Reply
  15. CraigSkich says

    May 27, 2022 at 2:56 AM

    viagra without a doctor prescription usa sildenafil 100 mg viagra price

    Reply
  16. CraigSkich says

    May 25, 2022 at 5:26 PM

    generic viagra walmart pfizer viagra 100mg price best place to buy viagra online

    Reply
  17. Jamesasymn says

    May 24, 2022 at 9:46 PM

    stromectol for humans for sale stromectol lice is ivermectin safe for cats

    Reply
  18. Jamesasymn says

    May 24, 2022 at 6:09 AM

    ivermectin empty stomach stromectol for sale stromectol for sale

    Reply
  19. Jamesasymn says

    May 23, 2022 at 5:03 PM

    stromectol tablets for humans stromectol 12 mg tablets stromectol tablets for humans

    Reply
  20. MichaelKef says

    May 22, 2022 at 8:22 PM

    ivermectin without a doctor prescription stromectol prescribing stromectol

    Reply
  21. MichaelKef says

    May 22, 2022 at 7:37 AM

    sildenafil 100 mg lowest price viagra tablets for men viagra pills

    Reply
  22. MichaelKef says

    May 21, 2022 at 6:55 PM

    clomid for sale buy clomid clomid tablets

    Reply
  23. MichaelKef says

    May 21, 2022 at 3:48 AM

    stromectol stromectol for humans for sale stromectol

    Reply
  24. MichaelKef says

    May 20, 2022 at 12:12 PM

    lowest price tadalafil cialis cialis pills

    Reply
  25. MichaelKef says

    May 19, 2022 at 7:29 PM

    ivermectin without a doctor prescription prescribing stromectol stromectol without a doctor prescription

    Reply
  26. CanadaFaura says

    May 18, 2022 at 9:43 PM

    stromectol 12 mg tablets stromectol without a doctor prescription stromectol for humans for sale

    Reply
  27. CanadaFaura says

    May 18, 2022 at 5:43 AM

    best ed pills at gnc cheap ed drugs cheap erectile dysfunction pills online

    Reply
  28. CanadaFaura says

    May 17, 2022 at 1:13 PM

    stromectol for sale buy stromectol online stromectol price usa

    Reply
  29. tinyurl.com says

    May 16, 2022 at 3:56 PM

    5 stars
    Nice post. I used to be checking constantly this blog and I am inspired!
    Extremely helpful info specially the remaining part 馃檪 I
    care for such information much. I was looking for this certain information for a very lengthy time.
    Thank you and best of luck.

    Reply
  30. CharlesWIZ says

    May 16, 2022 at 2:55 AM

    ivermectin for dogs with mange ivermectin for tapeworms in cats ivermectin injectable

    Reply
  31. CharlesWIZ says

    May 15, 2022 at 2:13 PM

    erection pills viagra online top erection pills medications for ed

    Reply
  32. CharlesWIZ says

    May 14, 2022 at 11:35 PM

    buy prescription drugs without doctor best online canadian pharmacy best ed pills non prescription

    Reply
  33. CharlesWIZ says

    May 14, 2022 at 6:26 AM

    ivermectin side effects in humans ivermectin covid trial how long before ivermectin works

    Reply
  34. CharlesWIZ says

    May 13, 2022 at 2:08 PM

    propecia without a prescription propecia without a prescription buy propecia no prescription

    Reply
  35. CharlesWIZ says

    May 12, 2022 at 2:40 PM

    finasteride 1mg propecia buy without per finasteride no prescription

    Reply
  36. CharlesWIZ says

    May 11, 2022 at 6:45 PM

    ivermectin for ferrets ivermectin for cats dewormer liquid ivermectin for humans

    Reply
  37. tinyurl.com says

    May 11, 2022 at 2:04 PM

    5 stars
    Thank you for sharing your thoughts. I truly appreciate your efforts and I am waiting
    for your further post thank you once again.

    Reply
  38. WilliamKig says

    May 10, 2022 at 4:43 PM

    buy prednisone online canada cheap prednisone prednisone purchase online

    Reply
  39. WilliamKig says

    May 10, 2022 at 4:46 AM

    erectile dysfunction remedies male dysfunction pills ed pills online

    Reply
  40. tinyurl.com says

    May 9, 2022 at 11:31 PM

    1 star
    certainly like your web site however you need to take a
    look at the spelling on quite a few of your posts.
    A number of them are rife with spelling problems and I find it
    very troublesome to inform the truth then again I’ll definitely come back again.

    Reply
  41. WilliamKig says

    May 9, 2022 at 7:42 AM

    how much is ivermectin ivermectin cream for rosacea does ivermectin kill tapeworms

    Reply
  42. WilliamKig says

    May 8, 2022 at 3:46 PM

    stromectol cvs ivermectin mites ivermectin dosage for humans lice

    Reply
  43. WilliamKig says

    May 8, 2022 at 3:07 AM

    3000mg prednisone order prednisone 10mg prednisone daily

    Reply
  44. WilliamKig says

    May 7, 2022 at 11:11 AM

    buy prednisone from india prednisone for sale prednisone 10mg tablet cost

    Reply
  45. WilliamKig says

    May 5, 2022 at 8:32 PM

    ivermectin warnings ivermectin steroids how can i get ivermectin

    Reply
  46. MonteWhare says

    May 3, 2022 at 3:21 PM

    [url=http://cheapdrugs.store/#]reasons for ed[/url]

    Reply
  47. gamefly says

    April 10, 2022 at 3:36 PM

    3 stars
    Hello there, I discovered your blog by way of Google while looking for a similar topic,
    your website came up, it seems great. I’ve bookmarked it in my google bookmarks.

    Hi there, just changed into alert to your weblog through
    Google, and found that it’s truly informative. I’m gonna watch out
    for brussels. I will appreciate for those who continue this in future.
    Many people will likely be benefited from your writing.

    Cheers!

    Reply
  48. gamefly says

    April 6, 2022 at 11:39 PM

    1 star
    Fascinating blog! Is your theme custom made or did you download
    it from somewhere? A theme like yours with a few simple tweeks would really make my blog shine.

    Please let me know where you got your design. With thanks

    Reply
  49. Queenie Mousel says

    April 6, 2022 at 6:32 PM

    Fact: 99 of all articles and website content online is regurgitated and rewritten material from some original piece of literary or artistic work.. . So, isn’t it true about web content copyright that as long as you reword or rewrite a piece of content from a site’s copy online, then it’s not theft or copyright infringement?.

    Reply
  50. flight ticket says

    April 6, 2022 at 10:15 AM

    2 stars
    Hey there! I know this is kind of off topic but I was wondering if you knew where I could get a captcha plugin for my comment form?
    I’m using the same blog platform as yours and I’m having problems finding one?
    Thanks a lot!

    Reply
  51. find cheap flights says

    April 6, 2022 at 1:56 AM

    1 star
    An outstanding share! I have just forwarded this onto a coworker
    who has been conducting a little homework on this.
    And he actually ordered me dinner due to the fact that I stumbled upon it for him…
    lol. So let me reword this…. Thanks for the meal!!

    But yeah, thanx for spending the time to talk about this matter here on your internet
    site.

    Reply
  52. cheap flights says

    April 4, 2022 at 8:04 AM

    3 stars
    Do you mind if I quote a few of your posts as long as I provide credit and
    sources back to your webpage? My website is in the exact
    same niche as yours and my users would genuinely benefit from a
    lot of the information you present here. Please let me know if this
    okay with you. Many thanks!

    Reply
  53. cheap air tickets says

    April 4, 2022 at 12:29 AM

    5 stars
    I have been exploring for a little bit for any high quality articles or blog
    posts on this kind of space . Exploring in Yahoo I ultimately stumbled upon this
    site. Studying this information So i’m satisfied to convey
    that I’ve an incredibly just right uncanny feeling I discovered
    just what I needed. I so much for sure will make certain to don?t forget this website and provides
    it a look on a continuing basis.

    Reply
  54. air tickets cheap flights says

    April 3, 2022 at 9:46 AM

    1 star
    Thanks for sharing your thoughts on cheapest flight tickets.
    Regards

    Reply
  55. cheap one way airline tickets says

    April 2, 2022 at 10:29 AM

    2 stars
    Hi there friends, its enormous article concerning cultureand
    completely explained, keep it up all the time.

    Reply
  56. http://tinyurl.com/ydeke2mp says

    March 27, 2022 at 5:01 PM

    2 stars
    You’ve made some good points there. I checked on the web for additional information about the
    issue and found most individuals will go along with your views on this site.

    Reply
  57. tinyurl.com says

    March 27, 2022 at 11:06 AM

    1 star
    Hello, Neat post. There’s a problem along with your website in internet explorer, would check
    this? IE nonetheless is the marketplace chief and a
    large component to other folks will miss your magnificent
    writing because of this problem.

    Reply
  58. tinyurl.com says

    March 26, 2022 at 8:16 AM

    5 stars
    Simply want to say your article is as surprising. The clearness on your publish is just excellent and i can assume you are an expert in this
    subject. Well with your permission let me to snatch your RSS feed
    to keep up to date with impending post. Thanks
    1,000,000 and please carry on the enjoyable work.

    Reply

Primary Sidebar

CATEGORIES

SEARCH THIS SITE

Copyright © 2023 路 Recipe Blogger Theme 路 Genesis Framework 路 Privacy Policy 路 WordPress 路 Log in