The College Plan

Paying for college is something to think about. So many American families live pay check to pay check. College five to ten years from now seems an easy financial obligation to put on the back burner. "There is lots of time." "We'll be in better financial shape then." "Precious is a 4th grade genius, I know she'll get a full scholarship when she graduates." "Did you see the way Little Jr. slammed that baseball? Colleges will be lined up for him to play for them."

Unless your statement begins, "Peggy Sue's trust fund......." do not assume money will magically appear when the time comes. It does not. Do not assume the astounding figures you see for four years of college is all it will cost. It isn't. Do not assume grants and scholarships happen just because your child is smart, or talented, or athletically gifted, or a minority, or a girl, or a boy, or handicapped, or whatever else is floating around out there. A friend of mine tells the story of his first day at Trinity University in San Antonio. The Freshman Dean stands before a room full of eager beavers and asks, "How many here were Valedictorian of their Senior class?" Pat proudly holds up his hand.........along with at least 80% of the audience. There are many worthy and outstanding 18 year olds, all vying for a limited number of scholarships and grants. Your child may catch the brass ring, and many do. But many others are welcomed by their university with open arms and a bursar bill.

This subject is near and dear to my heart. My son Tom is graduating from The University of Oklahoma this year. He is the last of four Wagner's to walk across the stage at Owens Field. When Tom graduates, we will have had at least one and sometimes 2 children in Norman for 15 straight years. My husband and I are very familiar with Bursar's bills.

Has it been a struggle? Sure it has. Have the sacrifices been worth it? Unquestionably.

Take it from someone who knows. Start saving now. Find ways to sock money away in a college savings plan as early as possible. Say, on your way home from the hospital after giving birth. Encourage your child to save toward college, not toward a new truck or a cell phone or a sound system or $125.00 tennis shoes. Make education a priority in your home. Make saving for college a focus.

I don't want to dissuade anyone from setting goals to attain scholarships. Academics, activities, leadership, service, all of these increase your child's chances of getting financial assistance. There are also lots of local scholarships that really help that first year. Encourage your senior to write the essays, fill out all the forms and apply for everything. Even a relatively small $250.00 scholarship goes a long way to cover first semester text books or student activity fees.

The college experience is broadening and enriching. Campus life offers new experiences and activities, exposure to new ideas and thought provoking intellectual debate. Lifelong friends are made and goals and aspirations are set. A positive four years opens up the world for a young adult. After graduation, that college degree opens up career choices, the vehicle to realize dreams, and the tools to make dreams come true.

When your children are small, don't make college a "maybe." Make it a "given." Make it the natural and assumed next step after high school. Include your kids in the loop. Let them know the sacrifices made, so higher education will be available when they graduate. Academics, financial planning, discipline and responsibility, long term goal setting, social skills, community involvement- these are all components that will make your home a setting for true "college prep." It's been a hard week or so....glad to be back. Chrissie

One Last Word...

School has just ended and area seniors have graduated. Two-and-a-half months of hot fun in the summertime (to quote Sly and the Family Stone) are just beginning. I value that freedom from books and schedules and rules.

But always in the back of my mind is a plan that takes discipline and schedules and rules. A plan for how to stay afloat in the wake of a billowing wave of higher food and gas prices. Higher college tuition. Higher everything. So, even though seniors graduated last night, today they still need a plan and so do you (and so do I!).

Anu, a blogger mother, left a comment for us. Her sons are 8 and 6, and she wanted to know how to save more than they currently save for their sons' college expenses. Their current disciplined savings plan is $100 per child every month. That is a fantastic start, especially since there is still ten years until her oldest child graduates. At that rate, they will have, at current savings interest rates, somewhere over $12,000 for their oldest son - or, the cost of one year of college at today's prices.

Additionally, the family earns more than $100,000 per year. There are other saving instruments available that earn a higher return than a savings account, but I am not a financial analyst and can't give that advice with a guarantee (can anyone?). This is the surest advice to Anu and others making between $70,000 to $110,000 wanting to up the odds on paying for college:

Bad news - at your current income level - and surely that will rise significantly over the next 10 years before your oldest is in college - the tuition deduction on income taxes is almost nil and so are need-based scholarships. Unless you are willing to not buy any new clothes, turn your heat and air way down, take fewer showers or put a brick in the toilet tank, and use leftover meatloaf as the base for spaghetti sauce, I can't tell you any way to get more money out of your salary. Live on less. I can't say it enough.
There is a savings instrument called a 509 Savings Plan into which any family member can contribute and the good news is it's tax deductible without having to file the long form, but you will have to check with your state to see if it participates in the plan and if it's tax deductible.

My best advice in light of your stated income is:
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Make your boys study every night - have a place or time specifically for studying and monitor that they are doing it and continue to do it through their teen years (that's when people relax and stop studying/monitoring), so that it is a habit.
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Practice for the ACT and SAT (but not right now at 8!). Take it several times. It has been my students' experiences that colleges start looking at 27 - 29, but 32-33 is preferred for scholarships at prestigious schools.
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Mold your boys into active participants in school, from course work to extracurricular activities and enrichment opportunities such as fieldtrips, summer programs, music lessons, sports teams, etc.
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Now, when they are little, make them save half of all the money they get from birthday presents, yard work/chores/allowance. It doesn't have to be half, but there is a great story about Rockefeller (I think) who taught his children the secrets of financial independence that way. Pay yourself first, in other words, and live on less than you have. I have had so many students who have tried hard, earned good grades, been magna cum laude, only to find there is no scholarship money for the middle class, unless one has a knock-out ACT or SAT score. So, save, strive for excellence, and make sure your children understand the goal.
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Know your own goal and continue saving.

So, school's out for the summer. Put that hectic schedule on the back burner, but keep the pot simmering on ways to advance the little ones' opportunities. As much as there is ever a guarantee, this will ensure many great summers for the rest of your lives!

Hallowed Halls and Ivy Walls

mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

Melony's information about paying for college is something to think about. So many American families live pay check to pay check. College five to ten years from now seems an easy financial obligation to put on the back burner. "There is lots of time." "We'll be in better financial shape then." "Precious is a 4th grade genius, I know she'll get a full scholarship when she graduates." "Did you see the way Little Jr. slammed that baseball? Colleges will be lined up for him to play for them."

Unless your statement begins, "Peggy Sue's trust fund......." do not assume money will magically appear when the time comes. It does not. Do not assume the astounding figures you see for four years of college is all it will cost. It isn't. Do not assume grants and scholarships happen just because your child is smart, or talented, or athletically gifted, or a minority, or a girl, or a boy, or handicapped, or whatever else is floating around out there. A friend of mine tells the story of his first day at Trinity University in San Antonio. The Freshman Dean stands before a room full of eager beavers and asks, "How many here were Valedictorian of their Senior class?" Pat proudly holds up his hand.........along with at least 80% of the audience. There are many worthy and outstanding 18 year olds, all vying for a limited number of scholarships and grants. Your child may catch the brass ring, and many do. But many others are welcomed by their university with open arms and a bursar bill.

This subject is near and dear to my heart. My daughter Catherine is graduating from The University of Oklahoma in two weeks. She is the third of our four to walk across the stage at Owens Field and the 4th Wagner is on target for 2010. When Tom graduates, we will have had at least one and sometimes 2 children in Norman for 14 straight years. My husband and I are very familiar with Bursar's bills.

Has it been a struggle? Sure it has. Have the sacrifices been worth it? Unquestionably.

Take it from someone who knows. Start saving now. Find ways to sock money away in a college savings plan as early as possible. Say, on your way home from the hospital after giving birth. Encourage your child to save toward college, not toward a new truck or a cell phone or a sound system or $125.00 tennis shoes. Make education a priority in your home. Make saving for college a focus.

I don't want to dissuade anyone from setting goals to attain scholarships. Academics, activities, leadership, service, all of these increase your child's chances of getting financial assistance. There are also lots of local scholarships that really help that first year. Encourage your senior to write the essays, fill out all the forms and apply for everything. That $250.00 scholarship goes a long way to cover first semester text books or student activity fees.

The college experience is broadening and enriching. Campus life offers new experiences and activities, exposure to new ideas and thought provoking intellectual debate. Lifelong friends are made and goals and aspirations are set. A positive four years opens up the world for a young adult. After graduation, that college degree opens up career choices, the vehicle to realize dreams, and the tools to make dreams come true.

When your children are small, don't make college a "maybe." Make it a "given." Make it the natural and assumed next step after high school. Include your kids in the loop. Let them know the sacrifices made, so higher education will be available when they graduate. Academics, financial planning, discipline and responsibility, long term goal setting, social skills, community involvement- these are all components that will make your home a setting for true "college prep."