Personal Finance Advice

Tell them.

Here is something you may not realize: Even if your family struggles financially on a day to day basis, your kids may still assume that you are stashing money away regularly for their college educations. It is just the way that most school-aged kids figure that it should go; they get through high school and then head off to college without any financial hiccups along the way. Unless your kids are privy to the family’s finances, and you have been frank with them about your inability to shoulder the cost of sending them away to college, it may be a safe assumption that they think you’re planning on funding their education when it comes time to head off to college.

Maybe you figure that your kids already know you expect them to get a job and give community college a try for the first couple of years. You might think that it would be a ridiculous notion if your kids think that there is any way you can squeeze college tuition, books, room and board into your already-tight budget, but think about it from your kids’ perspective. If you haven’t told them that you aren’t paying for college, and they don’t really know much about how money works, why wouldn’t they just assume you will be footing the bill?

You might be embarrassed about admitting that you haven’t set any money aside for your kids to attend college, but there are several reasons why you still need to approach them and let them know about the lack of funds:

• The sooner, the better: They can start saving on their own or find a part-time job that will sustain them financially into college.
• Picking a school: If they have their hearts set on prestigious universities, this reality check will steer them toward less expensive options.
• Getting scholarships: Without a college fund, your kids may turn to financial aid and scholarships. The earlier they realize this as a necessity, the sooner they can start researching their options.

If you still have a few years before your first child heads off to college, you may be able to save up enough money to at least offset some of the costs associated with the first year. Really, some money is better than no money, so if there is a way for you to set something aside, start doing so now. Research your options for college savings to find out how you can maximize whatever money you can put away for your kids to someday head to college.

If you just aren’t able to put any money aside because of financial difficulties, present other options to your kids. Suggest part-time work, scholarships, student loans or even military service because the Armed Forces offer impressive educational benefits.

Don’t be surprised if your initially kids react badly to the news that their college isn’t paid for, but consider how much worse it would be if you waited to drop this news on your teen after he or she receives an acceptance letter to the university of choice. It may not be a pleasant conversation, but it is a conversation that should be had nonetheless.