Paid off the student loan

[disneysteve]

I agree with disneysteve. It is acceptable if you can afford it, unacceptable if you have to borrow that much money. I would never borrow $150K for college. There are cheaper options out there.

In terms of the earning potential upon graduation, I encouraged my kids to pick a degree that (in my opinion) will most likely earn them a higher salary.

It's really no different if you substitute something else for college.

Is is acceptable to spend $10,000 for a luxury cruise?
If you can pay cash and not impact any of your other financial obligations, sure.
If you have to charge it and take 3 years to pay it off, not so much.

[Singuy]

It's really no different if you substitute something else for college.

Is is acceptable to spend $10,000 for a luxury cruise?
If you can pay cash and not impact any of your other financial obligations, sure.
If you have to charge it and take 3 years to pay it off, not so much.

This comment nail it on the head. I feel like too many people emphasizes on a college education regardless of degree without a second thought to cost..borrowing or otherwise. A useless degree may not yield you any more earning potential than going on a luxury cruise..of course the chance of the degree earning you more is obviously higher...but just because it's a few percentage point higher doesn't mean people need to put their entire life into financial hardship just to earn it.

If you are going to attend an expensive university for the sole purpose of earning a decent income but unwilling to study something with a good job outlook, I may even argue that saving the 200k for your child and put it in stocks may yield more $$$ in the long run.

[MooseBucks]

If you are going to attend an expensive university for the sole purpose of earning a decent income but unwilling to study something with a good job outlook, I may even argue that saving the 200k for your child and put it in stocks may yield more $$$ in the long run.

If the child is going to be happy with the other career than investing the money does make sense. If they're happy working at a non-profit or in a field that might not pay much then as a parent I'd be happy with their choice. Being financially secure is a significant part of life but it isn't everything. Being happy with your choices and making a positive impact is more important.

[Nutria]

Being financially secure is a significant part of life but it isn't everything. Being happy with your choices and making a positive impact is more important.

Bah.

Who's happy when they're financially insecure? Deluded people, that's who.

[Smallsteps]

Unfortunately too many choose what to study / get degrees in not based on much other then possible salary payoff. I wish I had a dollar for all the people I know who found out after the fact and then felt like they had no choice because they money they spent going down that path.

If people borrow large amounts of money then are miserable in that field what was the purpose??
Financial security over everything else is not everything.

[MooseBucks]

Bah.

Who's happy when they're financially insecure? Deluded people, that's who.

So Drs that devote their practice to helping folks that are leaving in poverty are deluded? Lawyers that devote their practice to helping disenfranchised people are deluded? Social workers, educators etc are in the same boat? I disagree. If my children want to do any of the above I'll view my job as a parent as a success.

[disneysteve]

If the child is going to be happy with the other career than investing the money does make sense. If they're happy working at a non-profit or in a field that might not pay much then as a parent I'd be happy with their choice. Being financially secure is a significant part of life but it isn't everything. Being happy with your choices and making a positive impact is more important.

Bah.

Who's happy when they're financially insecure? Deluded people, that's who.

The median personal (not household) income in the US is about $31,000. The median for those with a Bachelor's degree is about $43,000. And those figures are for people 25 and older so it doesn't include recent college grads.

I think it's easy for those of us with higher incomes (like me) to forget that most people don't earn what we earn. Most people make far less than me. All of my coworkers (office staff, not professionals) make far less than me. But they have houses and cars and families and take vacations and enjoy their lives. You don't have to earn 100K and above to be comfortable. You just need to live within your means, whatever those means happen to be.

[disneysteve]

About 70% of Americans earn less than 50K.
About 84% of Americans earn less than 75K.

If you earn more than 75K, you are in the top 16% of Americans and the top 9% if you earn over 100K.

[Nutria]

So Drs that devote their practice to helping folks that are leaving in poverty are deluded? Lawyers that devote their practice to helping disenfranchised people are deluded? Social workers, educators etc are in the same boat? I disagree. If my children want to do any of the above I'll view my job as a parent as a success.

Huh? Did you misread "insecure" as "secure"?

[Singuy]

The average salary for a bachelor's degree receiptient is extremely deceptive and hence I continue to make my arguments for better major seeking.

Only 60% of grads make more than 25k/year, while 40% makes less than 25k/year after graduation. The engineers and computer scientists are carrying the liberal arts with that deceptive 43k/year number.

http://time.com/100748/new-college-grads-are-about-to-get-a-major-reality-check/

[moneybags]

The average salary for a bachelor's degree receiptient is extremely deceptive and hence I continue to make my arguments for better major seeking.
http://time.com/100748/new-college-g...reality-check/

I agree with your argument. I told my kids they can make a positive impact in their free time.

[disneysteve]

I told my kids they can make a positive impact in their free time.

That's too bad.

I would never tell my daughter to focus on the paycheck first and the job second. I could have earned far more in my career than I have had I made different job decisions but that wasn't what was important to me.

[Singuy]

That's too bad.

I would never tell my daughter to focus on the paycheck first and the job second. I could have earned far more in my career than I have had I made different job decisions but that wasn't what was important to me.

But you are talking about foregoing making 300k/year vs making 90k/year.
Sure, if you are trying to seek very early retirement then this choice is not very optimized but that's not apples to apples comparison vs a new grad with student loans making less than 25k/year...

Once you hit below 25k/year, financial insecurity sets in which causes marital problems, constant stress, and food insecurity for your kids.

[disneysteve]

But you are talking about foregoing making 300k/year vs making 90k/year.
Sure, if you are trying to seek very early retirement then this choice is not very optimized but that's not apples to apples comparison vs a new grad with student loans making less than 25k/year...

Once you hit below 25k/year, financial insecurity sets in which causes marital problems, constant stress, and food insecurity for your kids.

For sure. I agree with that completely. If you're going to go to the effort and trouble of earning a college degree, and go into debt in the process, you need to come out with a reasonable plan. Earning <25K certainly doesn't qualify.

I just don't think that plan needs to be some high-powered, high-income career. There's nothing wrong with earning 40K or 50K doing something you enjoy, especially if you have little to no debt. A young person can live comfortably on that amount in most places. You don't have to be making >100K (which again, would put you in the top 9% of earners) in order to be safe and secure.

If you opt to take out a boatload of student loans, then you had better be preparing for a career that will pay you enough to support that debt load after graduation.

[moneybags]

That's too bad.

I would never tell my daughter to focus on the paycheck first and the job second. I could have earned far more in my career than I have had I made different job decisions but that wasn't what was important to me.

I did not tell my kids to focus on the paycheck. I gave them my opinion, but they ultimately chose their majors. I don't think they will be unhappy with their job options when they are done.

You said you could have earned more if you made different job decisions, but you could not have been a doctor without the degree(s) you chose, which happens to be a decent paying degree. So, my kids will have similar choices with their degrees, based on what is important to them.