College or car

[LivingAlmostLarge]

I have to ask and maybe I'm thinking about this incorrectly. But a friend's daughter got into to her top choice school a small liberal arts college. Cost of attendance is $92k a year. In state at a low ranked school is $38k a year. There are other schools in between. But she was rejected by the in state flagship.

So i get not paying outrageous amounts for college. And feeling $90k is too much for college. But here's my issue and problem with my friend saying it is unaffordable. And I sort of pointed it out and maybe I'm wrong.

Her husband in October 2025 bought a new $160k porshe and she drives a leased BMW SUV $120k. And they have always driven nice BMWs cars.

If college at $92k a year is ridiculous and it is, I guess I feel like then if you didn't buy a $180k porshe after 10% sales tax you could pay for 2 years of University.

I get not borrowing and feeling its a rip off. But really I am struggling with any family suing college is expensive and unaffordable and you drive nearly 400k in cars.

Or am I not getting that the parent deserve to drive luxury cars and her husband drives it daily and is so happy with his purchase? I guess I would say that I differential between in state and lac is $55k and if you scale back to a lesser car shouldn't college become more affordable?

Or is it that you should never pay that much for college?

[srblanco7]

My 2 cents - I would not use a “poor” decision regarding how much to spend on depreciating assets (cars) as a means to justify another poor decision (spending $90k+/year for college).

I say that without any insight into their overall financials. Just my quick reaction. That being said, as a parent, I’d struggle to justify splurging on fancy cars for myself and DW and then draw a line in the sand on investing in one of my kids. Just not who I am.

[Fishindude77]

This is not really a matter where your opinion counts for anything.
If another family wants to make dumb decisions, leave them alone and let them do their own thing.

Also - An 18 year old kid is an adult. Many of us were moved out and on our own at that age. The kid is free to move on and do their own thing if they are unhappy with what mom & dad want to pay for.

[ua_guy]

A little of both columns, sacrifice and affordability. I agree that an outsider opinion doesn't count in their decision making, but we can still judge.

$92k/year is a lot for an undergrad program if there's no specific direction. And I'd argue that any degree, public college/university, or private is better than no degree. Obtaining a degree or a direction for the future can be obtained for much cheaper. An AA typically doesn't come with any prestige, that would be like talking about where you obtained a GED. Nobody cares. Even bachelor programs these days, having one is more important than where it's from, and of equal importance is what the student actually accomplishes with it.

Families who agree to fund their kids' educations have to decide how much they can spend, and how much they are willing to spend. You see the families who are making college educations happen no matter what the cost. I'd say this family is on the opposite end and the parents are spending on themselves more. That's not wrong, necessarily, but I think it serves as a visual descriptor of where their priorities lie. I guess we'll have to see what they end up paying for.

[riverwed070707]

Sounds like they are passing their irresponsible financial decision making onto their kids.

That said, I've been upfront with DD since she started thinking about college that we're not contributing to her cost and that should be taken into account when choosing college. I hope she will make a financially sound decision, but I also accept that it's out of my hands to have an opinion about it when I've opted out of the financial responsibility. Other parents can judge all they want, but ultimately it's my decision how to spend my resources.

[bjl584]

I suppose this falls into the "none of my business" category

If the parents are bankrolling college, then yes, it's a bit odd to complain about the price if they are driving expensive cars on lease.
But, I don't know their financial situation either
Maybe they are good for it and are just cheeping out or griping about this one particular thing.

If I was going to go to a school that had a $92K per year price tag, then I'd want to make sure I'm getting a good ROI on it.
Choose a major that is in demand and pays well.
I wouldn't want to spend that much if I wasn't picking a marketable major.
If I didn't really know what I wanted to do, then maybe I'd pick a community college to get the basics out of the way while I "found my way", or maybe just join the workforce and see if you can get tuition reimbursement from a company that you enjoy working for and could see yourself being at long-term

[myrdale]

You're comparing apples and oranges, and not very well! (No offense.) So let me see if I understand and fill in the blanks.

Your friend and her husband both drive cars valued around $150k.

The daughter has been accepted into a private school which cost $90k per year ($360 to $400k for 4 years).

It is a liberal arts school.

The actual problem is the friend has complained in passing that "school is unaffordable". There is no actual "car or college" question. Honestly I thought it was going to be a question of private school and no car, or state school/no school and car.

We don't know their annual income.
We don't know their debt.
We don't know if they paid cash for the cars.
We don't know what the daughter wants to major in.

I will assume they are in debt on their cars.
I will assume they are in debt else where.
I will assume the daughter will graduate with a job earning $50k or less.

These people are normal. No plan. In debt up to their eye balls and they are going to drown the daughter in student loan debt that will haunt her for the next 30 years.

Is there something wrong with driving $150k cars? No, but that is assuming you can afford the car / insurance / taxes. To afford those cars, they need an annual income of $500-$600k. I'll bet they aren't there, else school wouldn't manner.

Is there something wrong with going to a private liberal arts college that is outrageously priced? No, but that is assuming you can afford the tuition. Under normal conditions, what should your income vs tuition be? I don't have a good number for that but I would guess your starting income should be close to your total tuition cost. I started at $55k with my parents paying roughly $50k for a degree in Chem Eng in 2005. Do you think she will be earning $360k starting off?

My opinion? They should sell the cars, and the daughter should go to an in state school and major in engineering / law / medicine .

[LivingAlmostLarge]

No i think it's more that if you have $300k in cars is $92k really that outrageous to spend on college? Whether cars are worth it is a different opinoin. Whether the university is worth it is another opinion. But isn't it all the same pool of money? You are spending either $300k on cars or a college education so it's a wash?

[myrdale]

No i think it's more that if you have $300k in cars is $92k really that outrageous to spend on college? Whether cars are worth it is a different opinoin. Whether the university is worth it is another opinion. But isn't it all the same pool of money? You are spending either $300k on cars or a college education so it's a wash?

The money for the cars is already spent (unless they sell them).

It is my opinion that if you can afford $300k in cars, $92k (per year) shouldn't be an issue.

Also keep in mind, just because they can afford $300k in cars, and "should" be able to afford $92k/yr tuition, doesn't mean school has to cost anything if the daughter as scholarships.

[ua_guy]

No i think it's more that if you have $300k in cars is $92k really that outrageous to spend on college? Whether cars are worth it is a different opinoin. Whether the university is worth it is another opinion. But isn't it all the same pool of money? You are spending either $300k on cars or a college education so it's a wash?

We also don't know how they afford $300k in cars. We'd prefer to think they paid cash but that is almost improbable. It may be a cash flow issue with a couple of $3000/month car payments or leases plus a nice house, property taxes, and high income comfort expenses.

College tuition is generally due quarterly and they'll take cash or check. They don't offer leases or promotional 60 month financing...

[Fishindude77]

Nothing mentioned about what kind of a degree the kid is seeking at this expensive college either.
If I was paying, it would have to be some sort of degree with very high potential of high income employment.
This could be a factor in the decision?

[anhtuvp]

It’s a classic case of "lifestyle over legacy." People will drop $160k on a depreciating asset like a Porsche without blinking, but suddenly get frugal when it’s an investment in their kid's future. It’s not that they can’t afford it; they just value the status of the car more than the prestige of the degree. Honestly, if you’re rolling in $300k worth of German engineering, claiming "unaffordability" is just a convenient excuse to not change their spending habits.