Well if you have kids in Cal Poly (avatar), you’ve made one very wise investment choice for sure. I think that school is one of the absolute best values in the country, if you’re in state.
Truth. We’ve sent one to cal poly slo and one to a WUE school so far. Even making economical choices, we’ve already spent 250k with two kids still to go. We’ve mostly spent it in cash as we were paying off our own student loans until about 10 years ago and only had a small bit saved for each kid, about 25k per. Again, there’s nothing I’d rather invest in than my kids, but being full boat is no joke.
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I don’t always agree with you on these topics, but here I do. There is a systematic bias against people who earn paychecks, as opposed to those with generational wealth.
Generational wealth is protected far more than paychecks from taxes, and generational wealth counts for less when calculation EFC.
A lot of money goes for mortgage for families who did not inherit or receive a house from their parents, dividends from inherited funds are taxed less, etc. When calculating EFC, only 12% of inherited wealth is considered to be available for paying tuition, whereas at least 25%, and up to 47%, of the income from a paycheck after taxes is considered to be available for paying tuition.
So it sucks most to be poor, no question. But it is a lot better for a family to have generational wealth than to be the ones who are pulling themselves out of poverty.
The USA pays lip service to the idea of “self-made”, and “pulling oneself up by one’s bootstraps”, but, in reality, the entire economic system privileges people who inherit their money over people who are making their money.
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No, the tax code favors investors over consumers, and this is something people who inherit money almost never understand until they are broke. Athletes and celebrities too. There is a reason most extremely wealthy people are both self made and extremely frugal.
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All true. I grew up poor, truly poor. Immigrant single parent, rough part of town. Truly, I’m living the American dream of pulling myself out of that cycle of poverty, but the system is not set up for me.
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I too grew up poor, single mom, violent area. This was a great blessing in disguise. I learned how to manage money, take chances, and live without fear of failure, because I had nothing to lose. I was fired from my first job out of college, also the best thing that ever happened to me. My boss said I was an ‘argumentative and disrespectful employee’, so I thought, maybe I should be the boss!
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Thanks everyone for your thoughts here. Posting this because it seems like there are some on here that are stuggling with what these concepts truly mean -
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A great illustration. We have always stressed to our kids how lucky they are. Stable family, loving and supportive extended family. Educated parents, grandparents, etc. Live in a city with limitless educational and cultural opportunities and parents who are able to pay for all of it and ferry them around. It is up to our kids to take these opportunities.
So yes, compared to our family, others at their school who are 1st generation college students, suffer from structural inequities, etc. are not starting at the same point.
Having said all that and being in total support of thumb on the scale, it does not feel great when my child wonders about other children whose college acceptances are in a different league. And yes, know what the grades are, ECs, etc. It is hard to walk the walk when it comes to equity and access. All I can say and keep saying is that children who come from a different background are in a different applicant pool altogether. My child is in the hyper competitive full pay, educated, non-diverse group with other children who also have had the same opportunities and maybe made more of them.
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Kaitlyn didn’t get into McCombs business school so she took the money and went to an OOS b-school.
With a 1550 SAT and top 3%, she could have been admitted to SMU Cox b-school with possibly $35k per year and some other financial aid if she’s needy. Without need, it would still cost $40k per year.
Rice b-school is new but will be amazing. Their students are already going to top I-banks and consulting firms without an undergrad b-school. Rice generously covers COA if families make less than $125k. Kaitlyn may have found that challenging if her family makes over $125k or has has considerable home equity resulting from rising north Texas prices.
I don’t know if it’s extraordinary but a local kid who is now at MIT went through the entire Kumon curriculum is eight weeks in the summer when she was around fifth grade. My kids had been slogging around with it for years. She was also top three in her HS class and an all state musician.
The issue is parents and students have bought into the myth of the ‘elite’ college as a prize for hard work, a place where all the worlds geniuses reside, and the roads of the future paved with gold. Nothing could be further from the truth. There are indeed at least 200 colleges in the top 20!
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You previously posted the following…
“I’ve been extremely fortunate financially and my kids have benefited by attending ‘elite’ schools etc.”
It seems conspicuous that your kids benefited from attending “elite” high schools but you now conclude the benefits of “elite” colleges are a myth. Was this a result of disappointment in their college applications or an actual first hand experience at an elite college?
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Both my kids are in ‘elite’ colleges. Frankly, no rational or sane parent should ever be disappointed by any college their children choose to attend. I conclude the benefits of an ‘elite’ college are a myth, because I live in the real world, and I see the real world outcomes.
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Congratulations on your kids!!
Do you believe their elite HS played a role in getting them into their elite colleges? If you don’t believe there are any incremental resources or benefits why are you paying up for elite colleges?
Hadn’t noticed anyone suggesting otherwise. I have a kid at an elite and one that attended a non elite. I wasn’t disappointed in the least. Fit was right for both kids. I did however observe, recognize and appreciate that there was a wealth of differences in the quality of the education, resources and opportunities between the two schools. In our experience the benefits of an elite were very real and not myth as you suggest.
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I have no problem with the reality that not all colleges are created equal. Some are simply better than others, and a few of these can be considered elite. I also believe that for every kid out there, there is a college that will work for them. It may not be an elite, but for any given kid that probably doesn’t matter.
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I believe the thousands of hours my wife and I joyfully spent reading, playing music, and talking to them played the largest role in their academic and personal success. I believe it will be their character, effort and hard work that will play the largest role in their future success, not the name brand of the college or the title of their job.
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So why waste the money on expensive elite high schools and continue to spend hard earned money on elite colleges if the benefits are a myth?
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My kids went to an ‘elite’ public school, didn’t cost me anything other than an incredible property tax bill. And now go to an ‘elite’ public university (in state). I actually had them do an ROI analysis, which they presented to me, to understand the cost/benefit of private and out of state colleges. They made a good decision, and should have enough money in their 529 even after grad school to fund their kids college educations.
More importantly, both are studying subjects that should lead to employment and a productive life, if they put in the effort.
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So I would suspect we could agree that I am not qualified to comment on what an elite public HS or elite state school experience is like given my kids attended private HS and private colleges. I certainly wouldn’t disparage the experience and I have said previously ultimately the quality of the student is what will determine success as an adult.
I would suggest however you have a similar blind spot when it comes to elite low single digit acceptance colleges and what advantages or opportunities it might offer. If you haven’t experienced it how can you possibly conclude definitively it is a “myth”.
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My wife went to the elite college everyone in the world seems to want to go to. Also for med school. I went to the college likely no one would want to go to. Together, we have a pretty good perspective.
She must be very young to have graduated so recently that her experience is current.
It also sounds like her super elite undergrad served her extremely well if it got her into her super elite med school. That sounds like a perfect example of enhanced opportunities at elites.
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