Seven Reasons Not to Send Your Kid to College

<p>Seven</a> Reasons Not to Send Your Kids to College - DailyFinance</p>

Imagine a retirement where you could have an extra $1million to $3 million in the bank with basically no effort. Now imagine telling your kids that you aren't going to send them to college. And, you go on, you want them to immediately start a business or get to work as soon as they finish high school.</p>

<p>These are difficult things to imagine because we've been so scammed by the "career industry" that tells us we need college degrees in order to succeed in life, regardless of how much money we spend for those degrees or what we actually do with our lives during the four to eight years it takes us to get those degrees.</p>

<p>But in my view, the entire college degree industry is a scam, a self-perpetuating Ponzi scheme that needs to stop right now.</p>

<p>Here Are Seven Reasons to Say "No College" to Your Kids:</p>

<li><p>More than 60% of people entering college take more than four years to graduate. So whatever you think your kids are going to cost you to go to college, add 20% to 100%.</p></li>
<li><p>The cost of the average college tuition has gone up nine-fold since 1976 versus seven-fold for health care and three-fold for inflation.</p></li>
<li><p>The differential in lifetime income between a college graduate and a non-college graduate over a 45 year career is approximately $800,000 (read on).</p></li>
<li><p>If I put that $200,000 that I would've spent per child to cover tuition costs, living expenses, books, etc. into bonds yielding just 3% (any muni bonds) and let it compound for 49 years (adding back in the 4 years of college), I get $851,000. So my kids can avoid college and still end up with the same amount in the worst case.</p></li>
<li><p>If smart, motivated, ambitious kids (the type of kids who get the most out of college) avoided college I'm sure the differential would be a lot less than $800,000 and may even be negative (i.e. they would make more if they avoided college and started going into the business world earlier).</p></li>
<li><p>The average debt burden of a college graduate is $23,000. Up from $13,000 10 years ago. Students with professional degrees can see their debt burden go higher than $200,000. Total student borrowing has topped $75,000,000,000. It's too much for young adults just starting their careers.</p></li>
<li><p>Alternatives to spending $200,000 per kid so they can waste four years of their lives:</p></li>

<pre><code>* Give them $20,000 to start one to five businesses. Most businesses fail but that's ok. The education from the process lasts a lifetime and the network you build when you start a business will lead to many future jobs and possibilities.
* Travel the world. That would be an education that pays many dividends and is much cheaper. Your kids can then go to college with a much more mature view of the world.
* Work. They won't get the best jobs but they can make money, network, get a "hands-on" education, learn the value of money and go to college in their 20s when they can afford it -- and make every dollar worth it. Plus your kids will have a more clear idea of what they want to do in the world.
* Volunteer. Let them see a side of life that is harder and where they can add value. An education like that is invaluable.
* Do nothing but read. Get the benefits of a college education without paying the $200,000. I'd be happy to support a child that wants to home school a college education.



<p>Here's the college life thread... <a href=""&gt;;/a&gt;&lt;/p>

<p>And anyone here who wants it, pick which point you think is legitimate, and I'll tell you why it's wrong, silly, or irrelevant.</p>

<p>So easy for James Altucher, an Ivy League grad with an advanced degree, to tell others not to bother with education. In his finance-minded world, apparently the value of anythiing (or lack thereof) can be measured solely in dollars and cents.</p>

<p>I'm wondering how many people who have "traveled the world" or "got a home-schooled college education" on their resumes instead of a college degree he's hired lately. Even if he'd hire someone whose major qualification for an entry-level professional job is started "one to five" failed businesses - how many other people will?</p>

<p>I love this one:

* Travel the world. That would be an education that pays many dividends and is much cheaper. Your kids can then go to college with a much more mature view of the world.


So we'll delay starting college and add on the cost of traveling the world. That will make it cheaper!</p>

<p>I can see the traveling and "life experience" bit as long as you are working to support yourself and not exactly mooching off parents or other people.</p>

<p>Wonder if Altucher has any kids and if he actually practices his theorem?</p>

<p>^^ Part of Altucher's personal finance plan is getting paid for writing columns that attract attention. As much of the American media has learned, one certain way to get attention is to offer an inflammatory opinion that runs counter to common wisdom.</p>

<p>the lifetime income differential is based on current 2010 dollars (or even past dollars?) The interest rate on investments reflects the inflation that that the bond market expects. Is it realistic to assume zero inflation in nominal incomes for the next 30 years? And thus in the income differential?</p>

<p>this experiment has been done. </p>

<p>I have relatives who don't go to college as a matter of principle. They are hasidic Jews. Some of them, who have a head for business, have done well. Most of them do okay. A great many do NOT have a head for business, or a knack for one the skilled trades they can fit into, and have ended up on the edges of poverty. As the number of niches where they can do really well (historically the diamond business, photo equipment, and consumer electronics) have become saturated, they have slowly overcome their resistance to college. It has become increasingly common for them to attend comm college, privates with satellite campuses in their neighborhoods (mainly Truro college) and online colleges. I even know of one who has gotten an MA from Truro. None of these people is doing it cause admire the prestige of college, value a college experience, or look down on going straight into business. They go to college ONLY because of the most narrow financial considerations. </p>

<p>They still do not do as well, generally speaking as people on this side of the Jewish cultural frontier, who can be assumed to have similar native intelligence, and no more motivation, but who take the more conventional upper middle class approach to university. And these are not people who have the temptation to take the money saved by avoiding college, and say, spend it on booze or fast cars.</p>