<p>Hi,</p>
<p>I will be going to college in September, and tuition is $40K. My parents didn't get any financial aid, and so they are paying full cost. I was wondering how you guys would suggest that I repay them in the 4-10 years following college (adjusting for inflation).</p>
<p>Suppose I get 90K first year, 100K second year, and then 120K next two years. How would you recommend I divide this into living expenses/massive savings (so I can pay back my parents)?</p>
<p>Much depends on where you live and what your expenses are. The easiest thing to do is just have a certain amount of your pay automatically deducted and put into some sort of mutual fund or other interest-bearing account. Then it will grow and you'll be able to repay your parents.</p>
<p>And I think it's wonderful that you want to do so!</p>
<p>Thanks! I live in Texas, go to school in Princeton. When I graduate, I want to go to NYC. Would mutual funds grow quick enough to get to 160K eventually (I don't know how much that will be in five years)...also, what's a good rule of thumb of how much to save?</p>
<p>Astrofan, I think your desire to pay back your parents is lovely. And you can begin paying them back immediately by taking the fullest possible advantage of your new opportunities at college - getting terrific grades, engaging in activities, trying out new courses and really fully experiencing college life.</p>
<p>Long term, you may want to consider paying it forward - in other words, saving and investing your money in order to ensure that YOUR children have sufficient funds for college. </p>
<p>I don't know how other parents feel, and I especially cannot guess what your parents may most desire, but personally, I don't want any money back from my child. It has been an honor and a priviledge to support her financially while she earns her degrees, and I am very grateful to have had the opportunity. The best possible thing she can do is make sure my grandchildren, if any, all get to go to college. And if there aren't going to be any grandchildren, then, if she has surplus funds and wishes to do so, I would prefer to see some money go to help someone who wants and deserves to go to college very badly, but who cannot afford to do so. </p>
<p>Each family is different, but I have no need for a bigger house, more cars, etc., and I can pay for my own retirement, therefore, I wish for my child keep her money, save and invest wisely, and "pay it forward".</p>
<p>You'll know what to do when the time comes.</p>
<p>All I can add to latetoschool is while you take fullest advantage of Princeton that you also share your experiences, and your excitement with your parents. Call them often. Tell them about your friends, your teachers, your classes. For many parents that is far more precious than any financial gift you can offer.</p>
<p>LateToSchool is right.</p>
<p>If the time comes, you may be able to pay your parents back - by helping them through retirement or helping out other siblings who are not as bright or successful as you.</p>
<p>I agree with what the others have said. Keep in touch with your parents while at college, let them know how much you appreciate their help, keep them involved in your life, and take full advantage of the opportunities the college offers. Before you worry about paying them back financially, however, make sure it is what they want. When I finished college, I asked my mom how I could pay her back. Her answer: Just do the same for your kids. And now I am doing that.</p>
<p>I don't expect our sons to pay us back for college either. I am just happy that I can help them with expenses and make it possible for them to pursue their dreams. It is nice, however, when they express appreciation for our help. I remember we had just left our second son at college for his freshman year and were driving off to the airport to head home, when I got a text message on my phone. It was my son, telling me he loved his new college and was really grateful that we were making it possible for him to go there. That repaid many thousands of dollars right there! :)</p>
<p>Thanks for all the suggestions. I think I will indeed tell my parents about everything going on at Princeton...also, I'll try to pay for my kids' education...if I can afford to :)</p>