This past summer I took two boys to a Sky Sox baseball game. I told them if we parked at a friend’s house and walked to the ballpark, we would save $5, and I would give each of them $2.50 which they could spend now or save for college. The 9-year old said he would spend his money now since he was going to college online. My job as a Financial Advisor is to let this boy know that online college can cost lots of money.
Attention Moms and Dads with small children – an important part of your job raising kids is to explain that money must be earned (i.e., it doesn’t just come from an ATM) and to advise them that online college courses for credit are not free. My son takes online classes at Texas State. Tuition runs $1000-$1250 for each course, and it costs $150 additional if the class is online. So online classes can actually be more expensive. Then you must add the cost for books. A friend says her BA degree in graphic design will cost $53,000 (comparable classes at other sites can cost up to $120,000). She adds that pursuing a degree through online courses is very hard; it takes discipline and time management and does not include the very valuable social interaction that takes place on a campus.
There are a growing number of free online classes including a full lineup from iTunes University. Problem is that none of these classes offers credit towards a degree. The state of Minnesota recently banned its universities from offering credit for free online classes. Also, online classes, even from accredited universities, don’t have the impact with companies who are hiring as does a degree from a traditional school. It comes down to the established reputation of a “real” university and the social interaction that graduations receive while attending (Online Universities: Why They Still Don’t Measure Up, Cormac Foster, November 9, 2012.)
Each family needs a plan to get the kids through college, and the kids themselves must participate:
Once the child reaches Middle School, he/she should understand that they must work hard and learn as much as they possibly can. Good grades are essential. Also, AP (Advanced Placement) courses in High School often can count as college credit, free college credit.
If money for college is a problem, encourage your youngster to spend the first two years in Junior College, a considerable cost savings.
Saving for college should start the day after your son or daughter is born. And once your child starts earning money, he must contribute to the college fund.
Look at this picture of me and my 10-week old grandson. I’m telling him, “Education is key to success in life. We want you to go to college, and college will be a joint effort. You must study hard at school. We will put some money aside for college, but you must also contribute.”
