College decisions!

So much goes into how we guide our children regarding their college decision - what schools to apply to, and ultimately the school they select. And hopefully, cost is part of the conversation. This can be an incredible opportunity to do a crash course on investing and the power of compounding.

Let’s evaluate the cost difference of a common decision – in-state university versus out-of-state university. Perhaps your student has the privilege of weighing a decision between the University of Oregon and California Polytechnic State University SLO – luckily both schools offer the same major/program your student is interested in – although one does offer a bit more sunshine and is further away from mom and dad. Cal Poly doesn’t offer your student any financial assistance so you will have to pay full out-of-state tuition. Living expenses are a bit more in California, but let’s ignore that and just focus on the tuition differential, in today’s dollars:

2023-2024 estimated undergraduate tuition University of Oregon in-state: $15,669

Cal Poly, SLO out-of-state: $31,674

The difference is approximately $16,000/year. What if you agreed, if your child chose the in-state school, to put the tuition difference in an investment account, at the end of each school year, then transferred it into their name when they graduated. What would this look like and what could this do for them in lieu of experiencing the California lifestyle for 4 years?

Our children work hard, and we want to see them fulfill their college experience dreams. For most, the primary reason for going to college is to explore and prepare for their future careers. Including financial considerations along with all the other factors in this big life decision can be powerful. Enjoy the journey with your kiddo!