Logic Behind Children Paying for College

I received a great e-mail asking me to explain the logic behind my advice to require children to pay for some of their college education. Let me explain:

First, children can have part of their education paid for by parents; however, they should take responsibility for their obligations. A scholarship, working in the summer, and internships are methods that I observed students use in my 26 years of teaching. Just as a guideline, students should not work more than 20 hours per week while in school, or time spent on studies will be lacking.

Second, students that are required to foot some of the bill generally will have a focus strategy rather than taking six to seven years to earn their sheepskin.

Third, we noticed that students who paid for some of their education were more likely to come to class and be engaged in the learning process.

Finally, too many parents sacrifice saving for retirement until the college obligations are completed. This results in parents starting to invest too late and not having enough time for time value of money to compound.

Note

The annual rate of inflation in 2004 is 4.4 percent. Mr. Greenspan will more than likely use a slow, methodical process to raise interest rates.

Isn’t it interesting that President Reagan was first elected President at age 69? Alan Greenspan could be Federal Reserve Chairman well into his 80’s. These examples are proof that knowledge and wisdom are still valued in society.

My e-mail address is:sullylab@vt.edu

Editors' note: Dave Kohl, The Corn and Soybean Digest Trends Editor, is an ag economist specializing in business management and ag finance. He recently retired from Virginia Tech, but continues to conduct applied research and travel extensively in the U.S. and Canada, teaching ag and banking seminars and speaking to producer and agribusiness groups.

To see Dave Kohl's previous road warrior adventures type Dave Kohl in the Search blank at the top of the page.

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