College is getting more expensive every year. With high costs, it might be hard for your child to pay for school. As a parent, you want what’s best for your child. But some parents question whether or not they should fund part or all the cost for their offspring. With an uncertain job market, many parents aren’t sure if a degree is even worth it anymore. On the other hand, a degree might help your child get a higher salary and make it easier to enter a career field.
Why You May Want to Help Out
If you foot part or all of the bill, your child may still have more opportunities than they would otherwise. Many jobs, such as those in the business or finance world, require more than just a high school diploma. Plus, that gap may be widening. Your child may also earn more with a college degree. Graduates often get a significantly higher salary than someone who skipped a university degree. Over time, that difference can add up. In some cases, students might be better equipped to finish school when they don’t have to worry about paying the bills. Between demanding classes, stress about money, and potentially a job, some students might just find it’s a little too much for them. Especially in some degree paths, it’s much harder to attend school while holding down a job. For example, students who get a nursing degree often have challenging coursework to complete.
Why You May Not Want to Fund Your Child’s School
No matter how you look at it, helping your child get a degree can cost you. And if you don’t have enough in savings for your future student, you may end up raiding your retirement fund. Unfortunately, this can be a big mistake. While it’s possible for them to borrow money to pay for school, you can’t take out a loan if you use your retirement fund. Even if you believe there’s still enough time to replace the funds, you could be required to retire early because of a job loss or illness.
If you fund everything for your child, they may feel more entitled. If they have to work for it, they’re more likely to appreciate it. When a student gets financial aid or a job to pay for school, they’ll better understand how much their education is worth. In turn, this can make them more likely to apply themselves to their classes. On the other hand, students whose college is paid for them may not feel like they have to work hard. They just see this as something they have a right to.
What’s the Solution?
It isn’t always a good idea to pay for your student’s education yourself. However, that doesn’t mean your child doesn’t deserve an education. Co-signing on a student loan can help your student pay for their educational expenses. At the same time, they will be responsible for paying it back. That way, they’ll be more likely to work hard while keeping you from paying for something you can’t afford.