Just a 47-year-old mom of 2 in Northern California. My kids are Monkey Monkey(MM) and Drama Llama (DL). I am married to Monkey Hubby (MH). I read this article and couldn't help but think, "How many people out there regret taking on too little debt?"
Get Smart About College
Parents and students like to think they're rational when it comes to picking a college and paying for it. They aren't.
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As a whole, was an interesting article.
But, then there was this sentence: "The way people think about debt, for instance, may leave them borrowing too little, rather than the right amount."
& this one:
"But it's just as important not to take on too little debt."
I don't know - I just don't know what that is supposed to mean. I come from a family who has managed college just fine with NO DEBT. Our parents. Our cousins. Our siblings. Us. & that didn't just fall out of the sky. It was a VERY conscious decision and mindset.
It's not as simple as a debt debate though. I've borrowed money to buy a home. Clearly I am not 100% debt adverse.
So, I think I know what bothered me about this article. It was all about investing in a college education, and how important that is.
Fair enough, on some levels. BUT, is investing this kind of money in a 17 or 18-year-old child, using debt, really that wise? Personally, I think it is a pretty terrible investment in majority of cases.
For reference, I graduated high school at the top of my class. Most of the kids I graduated with were going somewhere and attended prestigious colleges. Most of them spent their late 20s trying to figure out what they really wanted to do and how to pay for the education that had decided they really wanted and needed. Because, they had blown all the money they had, and probably money they didn't had, on an undergrad degree they didn't use.
Could just be a coincidence of circumstances, but everyone I know that went to State actually hit the ground running in their careers, really knew what they wanted to do, etc. Sure, I have a friend who went to Stanford and is very successful, but for the most part all that comes to mind is classmates who were working at Target when they turned 30. MANY of them still lived with their parents. & these are the *bright* ones.
I kind of see it a lot with my wealthier clients. They hand their kids whatever, and they live at home, don't work, take it for granted, etc. I just don't see a lot of people paying the big bucks for college and doing much with it.
I am personally committed to not tying up all our resources when our kids are 18 - leaving them in a position that leaves them with severely limited options down the road.
It's not just that I am so debt adverse that it is crippling. It's kind of like I don't see the point to pour all that money in such a young person. I am very open to feeling differently and being very supportive if my child REALLY knows what their passion and career goals are. BUT - I don't see why I can't plan to pay cash for that. *shrugs*
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But it also begs the question... Have you ever regretted taking too little debt? Just curious. Can't say I have any regrets of that variety.
September 19th, 2011 at 11:15 pm 1316474148
September 20th, 2011 at 03:30 am 1316489445
September 20th, 2011 at 02:43 pm 1316529784
Yeah, so the article was not all bad, but the financial parts were pretty terrible.
September 20th, 2011 at 09:32 pm 1316554349
But it's written pretty unequivocably in a way that says if you don't take on enough debt, you're making a mistake. And that's just not a sentence that makes logical sense. If one can achieve what one wants without taking on a lot of debt, would you take on more than you needed just so you fit within certain parameters of indebtedness? If I'd been editing this article for WSJ, I'd be sending it back with angry red marks all over it.
September 21st, 2011 at 07:43 pm 1316634197
September 21st, 2011 at 07:54 pm 1316634874