Financial Advice from a Softball Dad

[jonriv]

About a decade ago I started tracking our expenses on Quicken- it was eye opening!

We spent more on lanscaping than food(had just moved into a new house)

The real eye opener was how much we spent going out to eat- it was scary!!

My wife and I decided to have certain criteria when eating out-it had to fit one of these criteria:

-while travelling
-something special that we could not make better at home

Huge help in savings!! AI is right in minimizing your payments and controlling expenses can be huge. Think of it this way, if you save for Colleg and tehn get a scholarship-what a windfall!

[Sam]

Met with my financial planner a couple of years ago. He is a dear friend and a golfing buddy. He asked me how much money I wanted every month when I retire. The exchange went like this:

FP: How much money do you guys want every month when you retire?
Sam: I want $XXXXXX so that we can be comfortable, travel, and do whatever we wish.
Wife: We don't need that much. My mom does great on just her social security.
Sam: I don't want to live like your mom.
FP: Yeah, you don't want to be eating Alpo burritos when you are retired.
Wife: Well I do like my mexican food.


No arguing with that logic.

[PDad]

Ironically- several schools have found it beneficial to raise tuition in order to attract more students(makes them seem more desirable) If you see most colleges- they are not cutting costs, but building more and more. They keep raising tuition(not so much due to financial aid) but that there are more students chasing the same number of slots. You are right, at some time point something has to give if the cost/benefit is no longer there.

Would love for student loan/financial aid to put limits on the coast (if you want the $$ you need to lower costs.

I believe there is a college bubble that 's fed by easy student loan money - it's similar to the recent housing bubble and bust, They've only been able to raise fees because people have been able to borrow money to pay them. I would like to see limits put on what students can borrow and that would affect what colleges charge.

It's unbelievable the obligations that are being put on kids - parents' retirement, student loans and now subsidizing older/sicker people's health care.

[Pale Rider]

...actually...IMHO...if college finances were a primary issue...That person wouldnt be reading a fastpitch softball site anyway...

[jonriv]

Some views on the Bubble

http://www.forbes.com/sites/jeffreydorf ... derpriced/

http://abcnews.go.com/Business/bubble-t ... d=15987539

[jonriv]

Imagine if financial aid and loans were only available to public college-

I do do not feel sorry for someone who choses to borrow more to pay more? I went to a SUNY school because that was what we could afford. No loan. If you want to borrow to go to a more expensive school- go ahead, just don't look for any sympathy. Look at the ROI of the school- do the math

[PDad]

Some views on the Bubble

http://www.forbes.com/sites/jeffreydorf ... derpriced/

http://abcnews.go.com/Business/bubble-t ... d=15987539

Thanks for the articles.

I find the first one to be contradictory with it's title. It begins by positing that colleges are under-priced based on the demand in the marketplace and then acknowledges that the marketplace is gamed by public money (aid/loans). Colleges would be forced to become more cost efficient if demand is reduced by tightening the money available. It makes a lot of good points - I just don't agree with its title.

[fasterpitch92701]

Listen to JONRIV.... it's the truth....

[Diesels_dad]

Dave Ramsey-- old school math. Envelope for every expense. If there is no money left over for eating out stay at home n eat beans n rice. Sell everything until the kids think they are the next thing to be sold. There is no entitlement or credit cards.

“If you will live like no one else, later you can live like no one else.”

http://www.daveramsey.com/home/

https://www.youtube.com/watch?v=ze29EqWia6M

https://www.youtube.com/watch?v=mTt61hzShL8

[PDad]

Imagine if financial aid and loans were only available to public college-

I do do not feel sorry for someone who choses to borrow more to pay more? I went to a SUNY school because that was what we could afford. No loan. If you want to borrow to go to a more expensive school- go ahead, just don't look for any sympathy. Look at the ROI of the school- do the math

I missed this post while reading the articles you posted and I came up with a similar idea.

How about the underwriting criteria factor in the value of the specific degree from the school - sort of like the loan-to-value criteria in mortgage lending? It certainly applies to the ability of the student to repay the loan on their own.