College: Your Investment in Your Child

For many parents who help their children pay for college, there is an intense desire to make sure that your child doesn’t waste your money by flunking out, choosing an unprofitable path or becoming a perpetual student. Free Money Finance offered these hints, from the book 25 Ways to Make College Pay Off: Advice for Anxious Parents from a Professor Who’s Seen It All:

1. Try and find the right balance between hands on and hands off.
2. Have your child prepare a plan (written or verbal) about how college will help with career focus.
3. Perform a “focus check” every four months to see how things are going.
4. Require your child to cover at least 20% of the costs of the education.
5. Don’t let fear that your child won’t graduate hold you hostage.
6. Don’t worry if your child’s GPA is at least 3.0.
7. Try to take action if your child’s GPA is headed lower than 2.0.
8. Don’t fight the urge your child has to transfer (but try to minimize costs).
9. Be clear that you won’t pay for more than four years of college, unless it is a longer professional program (pharmacy, architecture, etc).

This makes a degree of sense. If you are paying the bulk of your child’s education, that you deserve to know how your investment is being spent. It’s your money you’re putting in. It is important, however, to make sure that you are clear about the “rules” ahead of time. I knew from the time I was 12 years old that my parents would pay for my housing and provide a food allowance, but that I was responsible for my tuition. I knew that I would need to work hard through high school to earn scholarships.

What are your plans to make sure your investment in your child’s education pays off?