Should I pay for my children college education?

Question

Rich Dad · Accepted Answer

If you pay for your kids’ college blindly, you might be buying them a degree — and selling them ambition.
Let’s get one thing straight: college is not an investment — it’s an expense unless it produces cash flow. If you’re writing $200,000 checks for a degree that leads to a $55,000 salary, that’s a terrible ROI. Would you buy a rental property that costs $200K and only pays you $4K a year? Of course not. Yet parents do this every day with degrees in fields that have weak income prospects.
Now, am I saying don’t support your kids? Absolutely not. I’m saying don’t subsidize comfort — subsidize growth. There’s a massive difference. When kids have skin in the game — scholarships, part-time jobs, student loans they must repay — they choose majors more carefully. They hustle harder. I’ve seen it repeatedly: the kid who works 20 hours a week while studying business often outperforms the fully funded kid who treats college like a four-year vacation.
Here’s a smarter play: instead of just paying tuition, consider investing that same $200,000 into assets. Put it in index funds averaging 8% annually for 18 years — that’s potentially $800,000+. Or buy rental property that cash-flows $1,500 a month. Then use the cash flow to support their education. Now you’re teaching them how money works, not just how to spend it.
And let’s talk alternatives. Trade schools can cost $20,000–$40,000 and produce electricians earning $80,000–$120,000 annually within a few years. Coding bootcamps at $15,000 can lead to six-figure tech jobs. Entrepreneurship? Zero tuition, unlimited upside. The world has changed. College is no longer the only gateway to success — it’s just one option.
Counterpoint: what about doctors, lawyers, engineers? Fine. Those degrees often justify the cost. But even then, I’d structure it strategically — match their effort dollar-for-dollar. You get scholarships? I’ll contribute. You maintain a 3.5 GPA? I’ll help more. Turn it into a partnership, not a handout.
Because here’s the danger: when you remove financial struggle entirely, you may also remove hunger. And hunger builds empires.
Pay for opportunity, not entitlement — and always make sure the money is building a future, not just funding a campus lifestyle.

Poor Dad · Answer

Education is one of the few investments that no market crash can take away from your child.
Let’s be careful here. A college degree still significantly increases lifetime earnings. On average, bachelor’s degree holders in the U.S. earn about $1 million more over their lifetime compared to high school graduates. Unemployment rates are consistently lower as well — often nearly half. That stability matters, especially in uncertain economic times.
Now, college costs are high — I won’t deny that. Tuition at a private university can exceed $50,000 per year, and even public schools can run $20,000–$30,000 annually including housing. But there are responsible ways to manage this. 529 savings plans grow tax-free when used for education. Starting when your child is born and investing $400 a month at a 7% return could grow to over $150,000 by age 18. Planning reduces burden.
We must also consider the emotional and practical side. At 18, many young adults are not financially mature. Expecting them to take on $100,000 in student loans can delay homeownership, marriage, and financial stability for years. I’ve seen graduates paying $800–$1,200 per month in student loans well into their 30s. That kind of pressure can limit life choices.
That said, I don’t believe in unlimited blank checks. Children should contribute — perhaps through part-time work, applying for scholarships, or attending an in-state public university for the first two years. Community college for two years can cut total costs nearly in half. There is nothing wrong with being practical.
And remember: some careers still require degrees — medicine, law, accounting, engineering, education. Without formal education, those doors simply close. We shouldn’t gamble with our children’s future access to opportunity.
If you are financially stable and can pay without sacrificing your retirement or taking on dangerous debt, helping your child graduate debt-free can give them a powerful head start in life. Just do it wisely, within your means, and with expectations attached.
A paid education is not spoiling your child — it can be the foundation of their security, if you plan responsibly.

Should I pay for my children college education?

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