Blog disclosure: This post is sponsored by the Florida Prepaid College Board. All thoughts are my own.
Back in February, I was giving a keynote at a Fortune 500 company called “Making Money Magic.” The idea was to get the employees more engaged in their personal finances and I started them off by getting clear about what they think and feel about money.
As you can imagine, the audience had lots of questions to ask me at the end of the keynote. And one thing that kept coming up was student loans.
I asked the question, “How many of you in the audience have student loans? Raise your hand.”
More than half the hands in the room went up.
But that wasn’t the most shocking part.
The most shocking thing was when a woman who has student loans asked me whether or not she should tell her kids to go to college because it doesn’t seem worth it.
Now, I have compassion for the woman and I totally understand why people are asking this.
There are lots of parents out there who are really struggling under the burden of student loan debt. Naturally, they don’t want their kids to go through the same thing.
I wouldn’t want my kids to go through it either so I don’t blame them one bit.
However, it may not be the smartest idea. Here’s why:
Higher Education Still Pays
According to data from the U.S. Department of Labor, Bureau of Labor Statistics, graduates with bachelor’s degrees nationwide earn on average 65% more per year than those without.
Higher Education Still Leads to Higher Employment
- A 2018 study from Georgetown University found that since 1991, good job opportunities declined by 1.8 million jobs for those with just a high school diploma – while they rose by 18.2 million for those with a bachelor’s degree.
- Georgetown University projects that by 2020, 65% of jobs will require post-secondary education.
- In 2018, the unemployment rate for bachelor’s degree holders was nearly half of those with only a high school diploma (2.1% vs. 3.9%), according to the Bureau of Labor and Statistics
As you can see, telling your child to completely opt out of college may not be the wisest choice.
(Of course, as I said to this woman, it totally depends on the kid and the kind of job they want. Just don’t throw the baby out with the bathwater.)
There are also options available to help pay for the cost of college that don’t require student loans.
There are scholarships and grants. Your kid also doesn’t need to go to the most expensive school in the country. And depending on where you live, your state might have a college savings plan.
Why Floridians Are Blessed
If you live in Florida, you have less to worry about when it comes to paying for your child’s education.
We’re lucky enough to have Florida Prepaid College which is the longest running college savings plan in the nation.
It also works!
How do I know this?
Because my brother and I both graduated from college debt free thanks to Florida Prepaid.
My parents opened accounts for us when we were born, saved money every month and then used that money when it came time for us to go to college.
And by the way, the program was so affordable that they were able to continue saving for our education even when our family fell on some hard economic times.
Quite frankly, if you are a parent in Florida there are no excuses. Your child can go to college debt free. And you can start saving as little as $46.61 per month.
Check out the plans below to see what options you have available to you:
What Being Debt Free Has Done For Me
My lack of student debt allowed me to use my hard-earned money to invest into my own business which is now grossing multiple six-figures in revenue annually.
And my brother has an amazing job, savings and has enough cash left over from his paycheck to invest and save for retirement. He is financially solid.
In fact, I’m convinced part of the reason why my brother and I are good with money is precisely because my parents refused to have us go into debt for college.
But they didn’t see not going to college as an option. Instead, they found a way to save for our education so we could go to school without the burden of student loan debt.
Florida Prepaid College helped them do that.
Open Enrollment for 2019 is ending April 30th! Plus, get some perks!
Open Enrollment for Florida Prepaid College is ending in April 30th. Do not wait another year to get this sorted out. It only takes 15 minutes to enroll and choose a plan.
Plus, Florida Prepaid is sweetening the deal.
- Deal #1: Get $30 off the application fee by using code AMANDA19
- Deal #2: Florida Prepaid has partnered up with LEGOLAND® Florida! Any family who enrolls in a prepaid plan during this Open Enrollment season will receive a 50% discount on LEGOLAND® Florida tickets for their family! (3 tickets only, including beneficiary. Tickets must be purchased by October 27, 2019. )