Parents of students in college are taking on more and more debt for their children and it's crushing their retirement dreams. In this episode we address the importance of honest conversations about family finances, the value proposition of a college education, and other ways for students to pursue their dreams.
In this episode:
As parents, did you know your social security check will be garnished if you sign on your child’s student loans and default? [1:00]
Recognize the true cost of paying back student loans is a multiple of three, when calculating taxes and interest [2:30]
Parents have to learn to say no to their children when it comes to excessive student loans [4:30]
Pew research estimates the value of a degree at $550K, but consider taxes [6:00]
The true cost of being in debt means you miss out on leveraged earnings potential like real estate [7:30]
As a college graduate, are you prepared to house your parents when they can’t afford to live because their social security checks are garnished? [9:30]
Some unintended health consequences of debt [11:00]
Parents will be targets for student loans because they have better credit [13:00]
The value of a college degree strongly relates to the salary of one’s chose career path [14:30]
When all of the family money is tied up in school, what opportunities for investment are you missing? [16:30]
Is it really a good idea for a bunch of 18- and 19 year-olds to be living together? Would the same rules apply at home? [16:30]
Meal plans are essentially like eating at Golden Corral three times a day: not the most nutritious choice! [17:00]
The majority of those taking on student loan debt is sadly those who can’t afford it [21:00]
It’s necessary to do the math and break down the cost. Parents can offer a huge savings by housing and feeding the student [26:00]
Focus on the dream and find alternative routes to get there, rather than what universities are selling you [27:00]
The truth is, you don’t know for sure if your desired school will meet your expectations until you’re there [30:00]
Parents, you’re doing your children a disservice if you’re hiding your finances from your kids [34:00]
There’s no need to be embarrassed by a lack of financial education: it’s sorely missing in our society {37:00]
Resources:
AnnaMaria Andriotis, The Wall Street Journal. Over 60, and Crushed by Student Loan Debt