Additional Coverage:
- I can afford my daughter’s college tuition, but I’m having her take out student loans. I want her to be financially independent. (newsbreak.com)
Local Parent Encourages Financial Independence Through Student Loans
A local parent has made the unconventional decision to have his daughter take out student loans for college, despite having a college fund set aside. He believes this will teach her valuable financial lessons.
College presented new challenges for this family, who had enjoyed a predictable routine throughout high school. The biggest hurdle? Paying for college.
While financially prepared, the father reconsidered using their savings. Reflecting on his own upbringing in a middle-class family with six siblings, he recalled the drive instilled in him by his parents’ reliance on loans for his education. He wanted to impart similar financial responsibility to his daughter.
He believes that taking out and repaying loans will offer a crucial real-world lesson in money management. This experience will teach her budgeting and debt repayment, vital skills for adulthood.
The family discussed the decision openly, setting realistic expectations for loan repayment and post-graduation finances. They agreed she would work during semester breaks, saving a portion of her earnings in a dedicated “loan payment” account.
After some initial surprise, the daughter is now in her second year of college and manages her loan applications independently. She maintains both a personal bank account and the loan repayment account, learning to divide her income and live within her means.
While some might consider this extreme, the parents believe it’s a necessary step towards fostering financial independence. They hope this experience will equip their daughter to handle future financial challenges.
Unbeknownst to her, the college fund remains untouched, a safety net for the future. The parents’ primary goal is to empower their daughter to navigate the financial realities of the world.