College bound? Buyer beware!

It's that time of year when Juniors and Seniors in High School are taking their SAT's and contemplating college.  While students are thinking about ivy walls and being away from home, parents are fretting the costs, which can be considerable.

Allow me to share some "20/20" insights from a parent who has gone down the college cost road more than once...(and on my way down again).  There are fewer greater feelings in the world than to be able to send your kid to the college of their own choice; but there are some good reasons why this gift may not be the wisest move.

First, if you are not in a position where you can write a check for all four-five years, then know that you face the possibility of running out of funds before your child can graduate.  If funds fall short, you may find yourself in the horrid position of asking your kid to "come home" and relocate their education.

Second, most students do not contemplate how difficult and different college is from high school, so their expectations are far off from reality.  If your child decides to go away to college, you run the risk of your child succumbing to stresses and failing classes.

Here are some strategies for a more successful outcome...

1. Sit down with your child and prepare a budget.  Its important for them to understand the actual cost of their education--after all, the student loans are in their name and they are ultimately responsible for these monies.  They need to understand the debt they are legally incurring (regardless of your intention to pay off the loan for them).  Also, once your child can appreciate the cost, they can better understand the importance of getting good grades.

2. Going away to college sounds great, but postponing this major step for a year or two may be better.  The first year is spent on prerequisites and general classes that can be taken at a State college for as much as 50% less than that of an out of state college. These classes are also easily transferred to most colleges. Besides the savings, the time will give your child a chance to mature and ease away from the apron strings.

Remember that the only college you list on a resume is the one you graduate from!

Stay tuned for additional advice on how to send your kids to college, while keeping some funds home.