William Elliott III, Ph.D., a professor at the University of Kansas recently published findings that "kids with a savings account in their own name are six times more likely to attend college than those without an account."
Dr. Elliott continued, "It's helping them to be thinking of college, to have it on their mind in a more concrete way than simply saying, 'I expect to go to college. They've taken some actions, they've got a savings account, they're saving some money. Positive expectations aren't quite enough."
Would these conclusions have been true for you or your children??
I didn't have a savings account... and it never occurred to me to NOT got to college.
ReplyDeleteIn fact, I was in eighth grade before I realized that some people AREN'T planning on it. I was shocked.
I think it was because both my parents did and it was always talked about as a given that all of us kids would go.
But I think kids having their own savings accounts for college is a great thing. I want to do it with my kids.
I had a savings account knowing that it would go towards my college- money for birthdays grades babysitting went to savings- I even had a cd account (more interest back!) and I'm grateful I learned to save in high school. I hope I can instill in my daughter and other children the importance of education AND money:)
ReplyDeleteI didn't have a savings account and did not expect any financial aid from my parents until I was 17 (my mom's financial situation changed with her 3rd marriage), but I always planned to go to college because it was always talked about in my home. I don't think it would have made a difference in my desire to go, but it sure would have made some things easier. My husband and his siblings, however, each had savings accounts for college. Their parents would match any funds they saved, so it gave them incentive to save and became the way that their parents helped them financially for college. We plan to follow his parent's example.
ReplyDeleteCollege was never a question for us growing up, so we would have gone savings or no. But I had no savings when I went.
ReplyDeleteAnd on that point, a HUGE caution to anyone considering saving for college or anything like that. Having come from a family who didn't really have extra resources for paying outright for college, I applied vigorously for student loans and grants. Contact your financial advisor, but if you do not have the "right" savings accounts/investments when you file your FAFSA and ask for aid, it will count against you. When a friend of ours asked how to save for his son's college, we said, "Put it in property, or cows, or something...just DO NOT keep it in the bank!" Otherwise you're guaranteed not to get the full amount you might otherwise had.
A screwed-up system, perhaps, but real. The poorer you look to the government, the better deal you get. (And subsidized gov't loans are THE BEST interest rate you'll ever have in your entire life.)
My parents had small accounts for their four kids' college funds. It helped a lot to solidify the importance of going (which was good at the time).
ReplyDeleteMy son currently saves 10% for tithing, 10% for his mission fund, and 10% for generic savings. But I am considering adding another account specifically called "education fund" that my hubby and I can also add to whenever we feel so inclined.
I don't like his generic savings to include education because it minimizes its importance. Glad you've brought this to my attention.
It's an interesting discussion, but I also wonder how much of that is that kids in homes that focus on saving are more likely to go to college or kids with families who put a focus on college or kids whose parents attended are more likely to go. For example, college attendance is significantly linked to socioeconomic status, so perhaps there is a stronger link there than to an actual savings account. Still, whatever helps, right?
ReplyDeleteI've heard the story forever--my dad would come in my room when I was still in the crib and say "You are going to college " I think it was subliminal programming =)
ReplyDeletePlease email me! I have a question about your blog :)
ReplyDeleteHeatherVonsj@gmail.com
Thank you so much for your comment Carole; my dress form was made by a local man who is now retired. I think all of his customers would be local people as well, and I doubt he would have ever advertised online. Sorry!
ReplyDeleteI definitely think a savings account instills responsibility, planning, appreciation, and self-worth. I totally believe in letting children take an integral role in their future and a savings account is a great way to let them do their part. I had a savings account starting at the age 8, and even if I didn't have one growing up I'm sure I would still have gone to college, but it was the principles that I learned through saving that helped me better appreciate my education.
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