Merit scholarships versus need-based financial aid effect on students, parents, and colleges

I think most would be shocked at how many people (raw numbers, as a percentage of population it would be very small) can pay college costs out of pocket. There are a lot more than most of us would think.

I agree completely with @blossom that saving gives more options and we don’t regret our choice to save at all.

At the same time, I try to not look at what other people have consumed over the years as a proxy for what they could have been saving. Trips to Disney, Hawaii and the like could have been funded by other family members or could have been put on credit (and still be in the process of being paid off), same as with expensive cars or any other consumer product. What someone chooses to buy/consume doesn’t always track with actual money available that could have been saved.

The only person’s money situation I know well enough to judge the saving rate of is my own. And I’ve made plenty of money ‘mistakes’ over the years, I think the big difference between our family being able to save is we’ve had a consistent, good-enough income that hasn’t been negatively affected by layoffs combined with a lot of luck of not having any kind of catastrophic bill/money need come up.

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