Hello, my name is Jacob and I am currently a high school senior. My ultimate goal is to hear people’s feedback on my situation to better weigh the advantages and disadvantages of going to college. First, a little about me. By graduation I will have a 4.1 GPA with a 1400-1500 SAT score. While both of these are pretty good, it still doesn’t make college free at the schools I’m looking at. I have roughly $25k in a 529 right now, and estimate $30-35k by the time I would enroll in college. I’m looking at public 4 year schools in Colorado with a good business program. Most schools I’m looking at have sticker prices of $25-30k/year. After financial aid would be awarded, I would be looking at $15-20k/year. Unfortunately merit scholarships will be the only ones I get most likely (I’m a white, third generation student). If we assume that the total cost will be $70k, I could pay $35k from savings, and probably another $20k as I worked throughout college. That would leave me with $15k in debt if all goes well. As I mentioned, my goal is to go into business and ultimately own my own business which does not require a degree. My goal is to use coasting FI/RE to save enough money in my 20’s and 30’s to semi-retire before 40. Financially speaking, I’m wondering if it would be better to take the 35k in the 529 and invest it, work while others are in college, and avoid student loan payments of $200-300/month. I know that a graduate might make more money post-graduation, but the opportunity cost of those loan payments could help catch me up. I know that it’s good to get the education, have the experience, network, and get a degree. The reality is that with my GPA and test scores being so high, I would almost feel like I was wasting all of that hard work if I didn’t go to college. I’ve read/watched a lot about this topic and over and over again I see people regretting their financial decisions in their early years. That’s why I’m trying to seek advice from the older generation and avoid those mistakes. I sincerely appreciate you all taking the time to read this and comment your thoughts. Thank you!
Should I go to college or try FI/RE?
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brewer12345
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Go to school, study hard and get a useful degree.
.. I say plumber or hvac and open your own business... but if you dont want to try for that follow brewers advice.. I regret doing the school/comp sci thing but it was the safe option and i will be able to FIRE.
projectmaximus
Recycles dryer sheets
You are in a great position. Definitely keep positive and look on the bright side of things. You have a small chunk of savings and you're already thinking about your finances years before many people do. It's a good dilemma to have.
That said, I do feel bad for you that college costs are so ridiculous these days. I'm almost 20 years older than you and in my day (my God did I just say that phrase
) options for college were far better and it was a much more obvious choice.
I'm not sure if I can be of much help but I have a couple thoughts:
1) If you already know what business you want to own, then figure out what the best path is for you to get there. It may be that there is a clear and sensible career path that does not require college. If that's the case, I'd say go for it. You can always go to college later on if you decide to.
2) Consider a community college for an associate degree first. I believe that if you transfer to the state school to finish the bachelor's then it will yield the same results but with significant cost savings for the first two years.
3) Consider a European education. This one may be a bit too out there, but imo definitely worth looking into. There are quality universities in Europe that offer English-instruction degrees at a fraction of the cost of US universities.
Oh and for what it's worth, I was kinda in your shoes (college fund, good academic record). And I really wish I had your maturity, awareness and drive. Like I said it made a lot more sense to go to college back then, and in fact I got a full ride (and then some)...but in hindsight I would have been way better off if I had been thinking about the things you're thinking about at your age. Asking the questions you're asking. It took me at least 10 more years to get there...
That said, I do feel bad for you that college costs are so ridiculous these days. I'm almost 20 years older than you and in my day (my God did I just say that phrase
) options for college were far better and it was a much more obvious choice. I'm not sure if I can be of much help but I have a couple thoughts:
1) If you already know what business you want to own, then figure out what the best path is for you to get there. It may be that there is a clear and sensible career path that does not require college. If that's the case, I'd say go for it. You can always go to college later on if you decide to.
2) Consider a community college for an associate degree first. I believe that if you transfer to the state school to finish the bachelor's then it will yield the same results but with significant cost savings for the first two years.
3) Consider a European education. This one may be a bit too out there, but imo definitely worth looking into. There are quality universities in Europe that offer English-instruction degrees at a fraction of the cost of US universities.
Oh and for what it's worth, I was kinda in your shoes (college fund, good academic record). And I really wish I had your maturity, awareness and drive. Like I said it made a lot more sense to go to college back then, and in fact I got a full ride (and then some)...but in hindsight I would have been way better off if I had been thinking about the things you're thinking about at your age. Asking the questions you're asking. It took me at least 10 more years to get there...
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Sunset
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Get a degree, like brewer12345 said that is useful, (IMHO - avoid History, English, psychology, Art, etc. degrees).
Do you have an option to go to a local free College for 2 years , and then switch to a 4 year College for the last 2 years ?
As for your problem of "(I’m a white, third generation student)" , the odds are long, but you could check with with grandma or your mother, as there could be a family secret
Do you have an option to go to a local free College for 2 years , and then switch to a 4 year College for the last 2 years ?
As for your problem of "(I’m a white, third generation student)" , the odds are long, but you could check with with grandma or your mother, as there could be a family secret
Ronstar
Moderator Emeritus
Lots of good advice above. Get your degree. From a financial standpoint, you will make far more than enough $ to pay off your student loans - if you get into a field where you can make good money. The key is to get the right degree and get the right job in order to make serious money. Make yourself as valuable as you can to employers and customers.
Amethyst
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Figure out what degree is going to be in demand and go for it.
If you want to take a year off and try your other plan(s), 2021-2022 would be the year to do it. With all the confusion over COVID-19, college is going to be a mess for a while.
Meanwhile, learn from the stupidity and selfishness of your elders, as displayed on the public stage. I am in my 60's, and I have never seen so many old people in "responsible" positions behave so childishly as is going on right now.
If you want to take a year off and try your other plan(s), 2021-2022 would be the year to do it. With all the confusion over COVID-19, college is going to be a mess for a while.
Meanwhile, learn from the stupidity and selfishness of your elders, as displayed on the public stage. I am in my 60's, and I have never seen so many old people in "responsible" positions behave so childishly as is going on right now.
njhowie
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What have your parents advised?
That would be a financial mistake, since the funds you take from the 529 which are not used for educational purposes will have the capital gains portion taxed.
That would be a financial mistake, since the funds you take from the 529 which are not used for educational purposes will have the capital gains portion taxed.
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Even if you don't enter your field of study in a lifetime job, a degree will open up doors that you never considered, or expected. Businesses/employers view a degree as a willingness to learn, and a confirmation that you put forth the effort to finish it, much more than what you learned in those classes.
Midpack
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+1. Your odds of success over your entire adult life will be much better if you have a useful degree. If you skip college, you’ll be competing for the good jobs against degreed candidates, and those odds are essentially insurmountable. Even if you’re capable without a degree, it’s unlikely you’ll ever get the chance to show it without a degree. Why would a hiring manager take a chance on you when he/she has plenty of degreed candidates to choose from?
That said, it’s important to choose something you’re good at and might enjoy. There’s no point in choosing a degree in a field you really don’t like even if you’re good at it.
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Bryan Barnfellow
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Go to university. Get an education from your classes and your interactions with your community of fellow students. If you are planning to open your own business and it doesn't require a college degree at present, it won't later either. That leaves you very free to explore the world through your classes. In any case, never exclude history, literature, art, philosophy, the sciences. These are the things that allow you to better understand, appreciate, and contribute to the world! They make you a more complete human being and will be the foundation of a more enriched life.
First of all congratulations for being this mature and forward thinking in high school.
I like to say that " I could barely tie my own shoes" at your age let alone think that far ahead.
I spent the first 2 years at a community college then took 2 years off(bad idea) then got a bachelors in biology then decided I wouldn't make much money with just a bachelors in that field so spent another 3 and a half years in engineering school.
I finally became an engineer at age 28 which paid well and gave me satisfying and steady employment and allowed us (my wife was a registered nurse) to retire early even though not starting a "real job" until I was over 28. Heck I had enough college credits to have probably continued the biology path and finished a medical school program but never really considered that because I liked engineering and design type work more.
If it were me I would probably get the degree but do it in some field that would serve you well if you do start your own business such as finance ,accounting, business admin etc. If those don't suit you then as others have said try to get into computer sciences , engineering or medicine etc
I like to say that " I could barely tie my own shoes" at your age let alone think that far ahead.
I spent the first 2 years at a community college then took 2 years off(bad idea) then got a bachelors in biology then decided I wouldn't make much money with just a bachelors in that field so spent another 3 and a half years in engineering school.
I finally became an engineer at age 28 which paid well and gave me satisfying and steady employment and allowed us (my wife was a registered nurse) to retire early even though not starting a "real job" until I was over 28. Heck I had enough college credits to have probably continued the biology path and finished a medical school program but never really considered that because I liked engineering and design type work more.
If it were me I would probably get the degree but do it in some field that would serve you well if you do start your own business such as finance ,accounting, business admin etc. If those don't suit you then as others have said try to get into computer sciences , engineering or medicine etc
We have a few very early FIRED folks on this board. May find some advice from some with very similar paths if they better understand your goals for yourself.
What do you mean by “coasting FI/RE”?
What business do you plan to get into?
Have you estimated funds you’d need to save to retire on your schedule?
Do you see family with kids in your future?
What do you mean by “coasting FI/RE”?
What business do you plan to get into?
Have you estimated funds you’d need to save to retire on your schedule?
Do you see family with kids in your future?
street
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You are a very gifted individual but not knowing your interest in a career, makes it difficult to a course of action. If you have an interest in a business or some dream job, then that would be key to see if college would help or not.
College doesn't mean you are going to make a lot of money or even be successful in your career.
I know many people that never went to college and have started business after getting some hands on in a profession that they like, and went on their own and have the world by the tail.
In business it isn't all that you know or your degree, it is the high quality people you hire and being surrounded by people that know the business, that will make your business a success.
I for one had only 3 years of higher education don't have a degree but have been very successful in my career. I got their, with hard work, long hours and I willed myself to where I am today. Taking a gamble here and there has been very beneficial for me.
College doesn't mean you are going to make a lot of money or even be successful in your career.
I know many people that never went to college and have started business after getting some hands on in a profession that they like, and went on their own and have the world by the tail.
In business it isn't all that you know or your degree, it is the high quality people you hire and being surrounded by people that know the business, that will make your business a success.
I for one had only 3 years of higher education don't have a degree but have been very successful in my career. I got their, with hard work, long hours and I willed myself to where I am today. Taking a gamble here and there has been very beneficial for me.
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I think if your entire life's goal is to retire early, you will be significantly disappointed when you get there. Find something that interests you and that pays well, and once you achieve what you want to achieve in life's value, you should secondarily accumulate enough to RE, as an option.
Given your background, I would go to a good university and try to get as many scholarships as possible. I would also work to graduate without the chain around your neck.
I think saving early enough to achieve coast FI by 30 and lean FI by 40 seem reasonable financial goals, so that you have flexibility in your life. As you get older, you'll realize that life is not so straight forward and narrow (e.g. I will do A, B, then C) especially when you have kids, so have a flexible plan. Lastly, please please please enjoy life and not let this money thing be your sole determinant of your life's success.
Given your background, I would go to a good university and try to get as many scholarships as possible. I would also work to graduate without the chain around your neck.
I think saving early enough to achieve coast FI by 30 and lean FI by 40 seem reasonable financial goals, so that you have flexibility in your life. As you get older, you'll realize that life is not so straight forward and narrow (e.g. I will do A, B, then C) especially when you have kids, so have a flexible plan. Lastly, please please please enjoy life and not let this money thing be your sole determinant of your life's success.
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Go to school. And don't write off the idea of scholarships - there are a lot of them out there.
The time and effort it will take you to find them won't be inconsequential, but you might find a lot of smaller grants that add up.
But maybe look at a local community college for the first two years? Then after you graduate with a degree, and minimal debt, you'll have far better earning power. You'll also graduate into a bull market most likely. A degree will open far more doors than you can imagine. And lack of one will keep them closed no matter what else is on your resume.
The time and effort it will take you to find them won't be inconsequential, but you might find a lot of smaller grants that add up.
But maybe look at a local community college for the first two years? Then after you graduate with a degree, and minimal debt, you'll have far better earning power. You'll also graduate into a bull market most likely. A degree will open far more doors than you can imagine. And lack of one will keep them closed no matter what else is on your resume.
EastWest Gal
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In your situation I recommend community college to start. You’re going to need Gen Ed classes anyway, so why spend money on a 4 year college. You don’t need an associates degree.
My parents insisted on community college even after I was accepted at UC Berkeley. I was worried going to community college would hurt my medical school chances. It ended up working well. The huge amount of writing I did in those early courses ended up being helpful. I also got a job on campus in the chemistry department, prepping materials for the classes.
You also don’t need to be a business major to own a business. Too many business majors. Your writing skills will vastly improve in college. Friend of mine was an English Major. He became a bank VP and retired early. Learning to communicate well is important in any field.
I’m curious-what are you going to do after you retire at age 40?
My parents insisted on community college even after I was accepted at UC Berkeley. I was worried going to community college would hurt my medical school chances. It ended up working well. The huge amount of writing I did in those early courses ended up being helpful. I also got a job on campus in the chemistry department, prepping materials for the classes.
You also don’t need to be a business major to own a business. Too many business majors. Your writing skills will vastly improve in college. Friend of mine was an English Major. He became a bank VP and retired early. Learning to communicate well is important in any field.
I’m curious-what are you going to do after you retire at age 40?
ivinsfan
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I wish I could take you and mix you together with a couple of youngsters on my side of the family, together you would be very well rounded. College is not just about the degree, it's a time of personal exploration.
To be brutally honest starting a business and making enough to ER is rare and extremely difficult. It will require countless hours of work on the front end and the risk reward ratio is not always fair. It takes a certain type of personality to put up with all the hassle that "being your own boss" entails.
Get a degree and be darn sure you get it in 4 years...
Don't be reckless with your money but enjoy the school experience. See what's out there and I for one don't see a thing wrong with a business degree from a good school. A business degree is one that is fairly easy to get in 4 years if you keep at it.
On the CC front some of them are fine but I certainly wouldn't rule out a 4 year school just because of the money side of it. Some of the better business schools are very difficult to transfer into.
When you say HS senior I assume you are graduation in Spring 21.
To be brutally honest starting a business and making enough to ER is rare and extremely difficult. It will require countless hours of work on the front end and the risk reward ratio is not always fair. It takes a certain type of personality to put up with all the hassle that "being your own boss" entails.
Get a degree and be darn sure you get it in 4 years...
Don't be reckless with your money but enjoy the school experience. See what's out there and I for one don't see a thing wrong with a business degree from a good school. A business degree is one that is fairly easy to get in 4 years if you keep at it.
On the CC front some of them are fine but I certainly wouldn't rule out a 4 year school just because of the money side of it. Some of the better business schools are very difficult to transfer into.
When you say HS senior I assume you are graduation in Spring 21.
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HawkeyeNFO
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Find a college with the best looking females, in the location where you want to be, look for scholarships, get a useful degree, and make sure you have some fun. Don't go in to debt.
ivinsfan
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Hawkeye seeing your name pop reminded me of the military option for this young man..
OP think about it you'd be a great asset to our country. And Psst..GI Bill for college.
OP think about it you'd be a great asset to our country. And Psst..GI Bill for college.
brewer12345
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I don't get the concern about cost. The amount of debt you will come out of school with is chump change. It is less than most people spend on a car and you can pay it off in a couple of years. Get the degree. Go to one of the state schools and do the work.
MRG
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I took the non-college route i.e. The School of Hard Knocks as the old man said.
My life would have been significantly better had I gone to college and received a degree. Instead I had to work harder than the folks who had the education.
My life would have been significantly better had I gone to college and received a degree. Instead I had to work harder than the folks who had the education.
ERD50
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Two problems with going right to starting a business - one is the outcome can be anything from very positive to very negative. The other is, how do you do this w/o experience and a degree (which can help get a job to get experience).
One alternative is the plumber/HVAC or other trade. They generally pay well and won't be outsourced, and you would have the experience/background to go into a business if that seems right.
Don't dismiss college on cost alone, but there are alternatives. You need a plan.
-ERD50
Hi all!
I sure wasn’t expecting this many responses. Thanks for the great feedback! I think that I may have left a few things out of original message that should be addressed.
1. I already have some college credits that would allow me to graduate in 3 years if I wanted, but parents have encouraged me to not rush it and do 4 years.
2. There are community college options, but I haven’t really considered them, as I feel like it’s not the real college experience.
3. I’m well aware of how my parents, peers, and society as a whole seem to push the idea of college. While it can be beneficial, there are many people who do just fine without a degree using an alternative path.
4. My passion is business/finance, that is most likely what I will study.
5. I don’t know what type of business I want to run, I just know that I want to run one.
6. By coasting FI/RE, I mean working and saving a lot early on to be able to lessen my work load between 30-40 and coast until 50-60 when I would fully retire by letting compound interest accumulate.
7. Yes, I plan on starting a family around age 30. That’s around the time when I would look to lessen my work load and move to a part time position to spend more time with my family.
8. When I say retirement I mean the flexibility to do what I want. I would be shooting for more of a semi-retirement where I work when I want and for who I want. I would spend time with family, travel, and do other things with the extra time.
9. I understand that many things will change and life may not work out how I would have liked. Nonetheless, I still think it’s important to think about these things and come up with some kind of plan.
10. I understand that owning a business is a lot of hard work. I’ve ran quite a few businesses already, and I understand the hard work that goes with it, and I enjoy the process.
10. One thought that I have had is that I could use those college years to travel and get experience in the world by traveling.
Once again, I appreciate all of your feedback!
Thanks,
Jacob
I sure wasn’t expecting this many responses. Thanks for the great feedback! I think that I may have left a few things out of original message that should be addressed.
1. I already have some college credits that would allow me to graduate in 3 years if I wanted, but parents have encouraged me to not rush it and do 4 years.
2. There are community college options, but I haven’t really considered them, as I feel like it’s not the real college experience.
3. I’m well aware of how my parents, peers, and society as a whole seem to push the idea of college. While it can be beneficial, there are many people who do just fine without a degree using an alternative path.
4. My passion is business/finance, that is most likely what I will study.
5. I don’t know what type of business I want to run, I just know that I want to run one.
6. By coasting FI/RE, I mean working and saving a lot early on to be able to lessen my work load between 30-40 and coast until 50-60 when I would fully retire by letting compound interest accumulate.
7. Yes, I plan on starting a family around age 30. That’s around the time when I would look to lessen my work load and move to a part time position to spend more time with my family.
8. When I say retirement I mean the flexibility to do what I want. I would be shooting for more of a semi-retirement where I work when I want and for who I want. I would spend time with family, travel, and do other things with the extra time.
9. I understand that many things will change and life may not work out how I would have liked. Nonetheless, I still think it’s important to think about these things and come up with some kind of plan.
10. I understand that owning a business is a lot of hard work. I’ve ran quite a few businesses already, and I understand the hard work that goes with it, and I enjoy the process.
10. One thought that I have had is that I could use those college years to travel and get experience in the world by traveling.
Once again, I appreciate all of your feedback!
Thanks,
Jacob
