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Can               any               parent               imagine               hearing               their               16               year               old               teenager               say:               "Mom               and               Dad,               I               want               to               be               an               architect;               I               researched               schools               and               ABC               University               has               the               best               program               at               the               lowest               cost,               it               is               not               too               far               away               so               travel               won't               cost               much,               and               they               are               willing               to               give               me               a               part               time               job               on               campus               to               give               me               spending               money?"
               Now,               I               am               sure               this               conversation               may               have               taken               place               at               some               point               in               history               in               some               household.

I               highly               doubt               that               it               is               the               normal               conversation               about               planning               for               college.
               Does               this               describe               the               more               likely               college               conversation               you               had               with               your               teenager?
               Parent               -               "So               Junior,               what               do               you               think               you               would               like               to               do               with               your               life?"
               Junior-               "I               dunno?
               Parent               -               Do               you               want               to               go               to               college?
               Junior               -               "yeah,               I               guess"
               Parent               -               Where               do               you               think               you               would               like               to               go               to               college?"
               Junior               -               "XYZ               college"
               Parent               -               "why               there?"
               Junior               -               "the               rest               of               the               gang               wants               to               go               there"
               Now               that               the               Baby               Boomers               are               and               have               been               sending               their               young               Darlings               of               Gen-X               and               Gen-Y               to               college               or               university,               it               is               amazing               that               we               are               shocked               to               hear               the               latter               conversation.

Why?

The               Baby               Boomers               pampered               the               hell               out               of               their               kids.

As               a               Baby               Boomer               myself,               I               am               not               here               to               criticize               how               we               brought               up               the               kids               or               why               they               do               not               have               much               direction.

The               Gen               X               and               Gen               Y               participants               will               get               their               just               dessert               when               their               kids               become               teenagers               who               are               even               more               apathetic               about               their               future               plans.

What               I               am               here               to               discuss               is               the               financial               ramifications               of               these               conversations.
               Leaving               the               College               Selection               Decision               up               to               Junior
               What               I               did               not               put               into               the               conversation               above               was               the               parent's               answer               to               Junior's               last               comment               of               "the               rest               of               the               gang               is               going               there".

I               run               through               this               conversation               in               the               Adult               Education               classes               I               teach               and               ask               the               class               members               to               finish               the               conversation.

I               really               should               not               do               this               since               their               answers               always               put               me               in               a               bad               mood.
               Common               Baby               Boomer               parent               response               to               Junior:
               -               "Have               you               applied               to               the               school               yet?"
               -               "Are               your               grades               good               enough               to               get               in?"
               -"That               should               be               a               nice               school"
               Not               one               class               participant               asks               about               tuition               or               programs               of               study               or               academic               standards,               etc.

Why?

Because               the               Baby               Boomers               appear               to               be               under               the               impression               that               junior               should               go               to               whatever               school               he               or               she               wants.

It               is               their               right               to               pick               the               school,               and               our               responsibility               to               pay               for               that               selection.
               A               Financial               Planner's               View               of               the               College               Selection
               You               can               understand               why               I,               as               a               Financial               Planner,               get               in               a               bad               mood               after               hearing               the               above               responses               come               out               of               the               mouths               of               grown               people               who               have               trouble               making               ends               meet               every               month.

College               or               University               tuition,               and               related               cost,               is               many               times               the               largest               expense               parents               will               experience               in               their               lifetimes.

To               repeat,               College               Tuition               will               be               the               largest               expense               parents               well               face               during               their               lives.

This               expense               will               be               larger               than               the               cost               of               buying               a               house.

We               will               be               paying               for               college               tuition               costs               for               many               years               after               our               Darlings               graduate.

It               can               eat               into               our               401k               assets,               smother               us               in               long               term               loans,               and               delay               our               own               retirement               dates.
               The               biggest               issue               I               have               is               not               that               Junior               is               going               to               college               or               that               we               are               paying               for               it.

These               days               the               kids               have               to               go               to               college               to               have               any               decent               shot               at               getting               a               good               career               job.

My               issue               is               that               we               leave               the               largest               financial               decision               of               our               lives               to               a               17               year               old               who               wants               to               go               to               college               just               to               get               out               of               the               house               and               have               a               good               time.

From               a               financial               viewpoint,               the               parents               must               be               involved               early               when               Junior               is               15               or               so               to               ensure               that               he               or               she               understands               this               is               a               big               decision,               that               the               parents               will               send               Junior               to               an               "affordable"               college               (if               such               a               place               exists)               and               that               the               parents               have               the               final               decision               of               where               Junior               will               go               to               college.
               Controlling               College               Costs
               The               normal               article               on               Financial               Planning               for               College               deals               with               scholarships,               grants,               financial               aid               and               FAFSA               or               Federal               student               loans.

These               are               important               in               how               to               pay               for               college.

There               is               one               age               old               idea               that               I               want               to               address               here               which               involves               loweing               the               tuition               expense.

If               your               Darling               is               not               very               mature,               has               no               current               long               term               pursuits               in               mind,               and               is               just               following               his               friends'               suggestions               about               college               selection,               consider               sending               Junior               to               the               local               Community               College               for               2               years.

Accounting               101               class               or               Basic               English               class               is               pretty               much               the               same               whether               taken               at               the               Community               College               or               Harvard.

The               cost               will               be               80%               less               at               the               Community               College.

The               deal               with               Junior               will               be               that               if               he               keeps               his               grades               up,               he               can               choose               the               College               or               University               to               attend               in               his               3rd               and               4th               year,               AND               you               will               get               him               his               own               car.

This               last               item               will               many               times               be               enough               for               him               to               agree               to               this               proposal.
               The               advantages               of               having               Junior               stay               home               for               the               first               two               years               of               college               are:
               From               the               parents'               viewpoint:
               •               Junior               will               be               2               years               more               mature               when               he               makes               his               final               college               selection
               •               Junior               may               have               a               better               idea               in               his               sophomore               year               of               what               he               wants               to               learn               in               college
               •               The               parents               will               save               roughly               30%-40%               of               the               cost               of               sending               Junior               to               college
               •               The               parents               can               monitor               Junior's               progress
               •               Junior               will               still               get               his               "college               experience"               during               his               last               two               years,               which               appears               to               be               a               major               concern               of               mothers               I               poll               in               the               Adult               Education               classes
               From               Junior's               standpoint
               •               He               gets               a               car               of               his               own
               •               Junior               has               the               freedom               to               come               and               go               as               long               as               his               grades               are               satisfactory
               •               Odds               are               Junior               will               not               flunk               out               of               Community               College               and               be               forced               to               go               out               and               get               a               menial               job
               Can               the               Baby               Boomer               parent               consider               such               a               suggestion?
               The               feedback               I               get               from               Baby               Boomer               parents               after               making               this               suggestion               vary               considerably.

Some               say               "Not               a               bad               idea".

Majority               say               "No               way               -               my               Junior               deserves               the               best".

We               would               rather               concentrate               on               how               to               get               a               scholarship               or               loan               than               cut               the               expense.

I               will               not               argue               the               latter               response               from               parents               who               cannot               really               afford               to               pay               for               an               expensive               college.

To               these               parents,               I               can               only               say               that               allowing               a               17               year               old               to               determine               your               long               term               financial               future               is               not               sound               Financial               Planning.






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