Kids Should Have a Stake in Education
When kids pitch in financially for their schooling, they take it more seriously. Plus: The consequences of a teen's speeding ticket.
I'm writing in response to your recent columns on who should pay for college. I am a firm believer that having a parent fully fund a child's college education creates an entitlement mentality in the child's mind. If children have a stake in the outcome (their money) they will be more motivated to perform and graduate, as well as find a job.
We have two sons who attended private colleges and earned engineering degrees. Both worked in a factory for two summers and earned money during the school year through co-op engineering jobs; they worked and attended school in alternating semesters.
Sure, it took five years to complete their degrees. And, yes, we supplemented the cost of college from education funds that we established at our sons' birth and funded regularly through their first 18 years.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But they both graduated debt-free -- no mean feat from a private school. They had a large stake in funding the cost of their education and have put it to good use through productive jobs.
Thanks for sharing your experience. I wholeheartedly agree that kids take their education more seriously when they have a financial stake in it.
Consequences of a speeding ticket
Last December my 16-year-old daughter got a speeding ticket coming from a pizza pickup. She was doing 40 mph in a 30 mph zone. I used the experience as an education: took away her keys, and made her go downtown and pay the fine in person from her savings. My goal was to teach her a lesson -- not to speed -- and so far it's been successful.
Unintended consequence: In June the renewal for our car insurance came due, and my company increased the rate for my daughter and her 1997 Camry by $250 a year. When I contacted the company, I was told that the risk for a teen driver who gets a speeding ticket is significantly higher and that my daughter will have elevated insurance rates for the next three years. So teaching her a lesson instead of fighting this traffic ticket is costing a cool $750, in addition to the fine.
My advice to all parents out there: Traffic tickets are not learning experiences. Go to court, talk to the traffic judge, do what you can to get them dismissed ... or stand by for significantly elevated insurance costs.
I can appreciate your reluctance to pay the additional premium. But I think you're to be commended for how you handled the situation. If your daughter turns into a safer driver, $750 will be a small price to pay.
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
Should You Renew Your CD?With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.
-
7 Ways to Plan Now to Save on Medicare IRMAA Surcharges LaterUnderstand the critical two-year lookback period and why aggressive planning before you enroll in Medicare is the most effective way to minimize IRMAA.
-
Smart Strategies for Paying Your Child an AllowanceBy giving your kids money to spend and save, you’ll help them sharpen their financial skills at an early age.
-
How to Motivate Kids to Savepersonal finance It's not easy teaching your child to save. Here are some ways readers have incentivized their kids to keep track of their finances.
-
Lessons for Kids From the Crisissavings One of the greatest opportunities presented by the pandemic is to give children an appreciation for the workings of the economy.
-
Why Financial Education Workscollege Money skills learned young will pay off in the long run.
-
The Tooth Fairy Is Leaving Less Under Pillows These Dayssavings The average amount that the Tooth Fairy gives kids is down 10% from last year.
-
The Value Test: 300 Colleges That Pass
College Rankings All the schools on our list, from 1 to 300, are best values.
-
6 Ways to Get Your Kids to Do Chores Without Paying Themspending Kids shouldn't be paid for doing routine tasks, but for doing extra jobs that parents define as above and beyond.
-
Save $1 for College, Cut $2 in Debt
college Paying for college doesn't mean you have to take out thousands in student loans.
