dlq04

I just heard a report that said 1/3 (one-third) of all Grandparents, with grandkids in college, paid $50,000 or more (FIFTY THOUSAND or more) towards their grandkids college education. It caught my attention for several reasons. One- I just paid $2,086 towards my grandson's first semester bill today. Two- I dread the second semester bill. Three - Where do the grandparents get all this money, when we hear how low the average income is, etc. Four - I know one thing; no way, am I going to figure into the above stats.

I'm hoping this "kick-starts" my grandson on moving his life forward and I will help to the extent it makes sense to me.... but I've three other grandkids with probably more on the way. I've started a college fund for the other three but it will probably be no more than a "kick-start" for them as well.

As grandparents, how much are you willing to pay it forward?

trapper

Dorothy and I both worked our way through college. She worked year round and I worked two or three jobs each summer. We both graduated with no debt (I actually had $215 in the bank). I also went to the cheapest of the colleges I was accepted at so that my family would have enough money to help send my younger brother to college a few years later.

We have 8 grandchildren. Two have graduated from college and two are currently going. Of our remaining four grandkids, two will probably attend college over the next 10 or so years; the other two are doubtful

All the grandkids are treated the same. They get $100 for their birthday’s and for Christmas and $1000 when they graduate from high school.

The two that have graduated from college each received $3000 when they graduated. Other than that we have contributed nothing else...nor have we been asked for additional help. The others who go to college will probably get the same.

There is, however, a catch to the $3000 gift. They must have worked at least during summer vacations and gotten a degree in some discipline that has a good change of allowing them to get a good job (a degree in buggy whip making or any other useless degree will not qualify).

The cost of a college education is getting ridiculous and we may revise our thinking in the future. What we will not do, however, is jeopardize our financial security.

ralper

Times have changed. I was lucky enough to go to college when the City University of New York was free. The great people of the City of New York felt that everyone would benefit from educating their children. All I had to pay was a $50 per term consolidated fee for a total of $400. I was able to save most of the money I earned working summers and part time during the winter. My wife went to NYU on full scholarship. She only had to pay for her books.

We started putting money away for our kid's college educations when they were born. Both chose to go to state universities, Andrew to Rutgers and Adam to Virginia Tech. Luckily the money we put away for them coupled to some astute investing over the years covered their tuition. Andrew graduated debt free and Adam will graduate debt free. Neither used the full amount that we put away for them. The remaining money will go to them someday when they need it.

Neither son is married yet and we don't have grandchildren. If we did, I would start to put money away for their educations at birth just as we did for our sons and let time help to increase the amounts. I'm sure with the way we've brought up both of them they will put some of the money that they inherit from us away for their kids (our future grand children's)education if we're not around when the grand children are born. One way or the other, I hope to be able to help my grandchildren graduate from college debt free.

I've always felt it to be my obligation to help my kids get a start in life.

An aside to all of this, if you really want to give your grand children a great gift put some money into a Roth IRA for them. Typically a teenager working during the summer or at any time during the year is doing this for spending money or gas money. Generally there isn't much left to fund a Roth IRA. But you can fund it up to the limit of their earnings or $5,500, whichever is less. They might not appreciate the gift now, but when they get to be around retirement years, and with time (and hopefully some wise investing) doing its magic they might have a nice nest egg thanks to you.

skunkworks

It’s always gratifying to help out your loved ones. If you’re financially stable and comfortable looking forward into the remainder of your life, then become as charitable as possible. I’ve helped in the past and will continue, as long as it doesn’t promote complacency or a dependence with the recipients.

gary

cosmomiller

It seems that many strive their lives to accumulate cash/assets and then bequeath them to make heirs wealthy. Lots of studies have shown those heirs do little with their lives.

I have seen a few acquaintances create a trust that instead of making instantly rich kids, it provides a vehicle to pay for all education costs. It lasts through generations (presumably growing) and provides as much education assistance to any heir able to gain admission to any school of their choice, for any advanced or undergraduate degree. That way the heirs can enter the working world debt (at least from an education standpoint) free. It provides an incentive to better oneself without concern for financial ability. No more drinking and drug money for deadbeats.

dlq04

I really like the idea of a trust fund limited to educational purposes. Something we might think about doing, for the heirs of our heirs if there is anything left. I was able to pre-pay my youngest daughter's college education through a state run plan. She still ran up some big debt due to her 'way of life' in school that she is still paying off. I started state run ed-plans for my four grandkids as well. However, the oldest wasn't started anywhere early enough, whereas the other three were at/near birth.

I totally agree with the remark "What we will not do, however, is jeopardize our financial security." As my wife as reminded me, our obligation was to our kids... not our grandkids. And we are still helping one a lot. But, three of the grandkids are his, so we try to do what we can but if any of them are sitting around waiting for $50k - it ain't happening.

Ryuu

GI Bill and I worked my way through after my GI Bill ran out.. when my daughter asked about her college education and told me all about how her friends parents were paying for their children education.. I figure.. that's their business.. I explained... if you work for something, you'll appreciate it more.. she went off, got a job.. putting herself through her college...

boltonblue

wonder where they pulled those stats from?

dlq04

I just caught part of the discussion on NPR. This may have been the source: http://www.wbur.org/2014/06/05/colle...s-finance-cost

Morris

One of the reasons I volunteered for the draft was to get the GI Bill. That, plus working (year-round) plus low cost state college, got me through. I will not give a penny for my kids or grandkids education. I won't even pay for elementary school.
(did I mention I have no children?)