Here’s a good question – Who should pay for college? Parents? Grandparents? The kids? Well, here’s my answer – hopefully, the children are going to be academic geniuses and they are going to win scholarships. Maybe they are going to be athletic geniuses and are going win athletic scholarships, but what happens if they don’t?
I think we have to look at it in the following manner. I call this my “Mercedes Educational Plan.” In one of the sectors of the Mercedes symbol, I put parents and grandparents. I think parents and grandparents should start saving for education as soon as a child is born and continuing saving along the way. In another section of the Mercedes symbol is the children. I think it is important for children to understand how expensive it is to get a higher education today. They should have to work for their college funds also. The third sector holds the possibility of scholarships. There are a lot of working and special types of scholarships that the entire family could research to try to get at least a piece of the total education paid for. If you put all three together, you may be able to have college costs taken care of for your family, but start working on it early and often. Remember, college costs and educational costs will, most likely, increase every year. In fact, the only thing going up more each year is healthcare costs. A recent survey states that the cost of a state college for a child born this year could be as much as $100,000 a year.
And that’s my Money Minute.
The interpretations and organization of these ideas do not represent the opinions of Berthel Fisher and Company Financial Services, Inc.