Skip to content

September 19, 2011

There is more to college planning than meets the eye

Today’s Wall Street Journal has an article about how to avoid the cognitive traps.  The approach suggested is similar to the approach required for financial planning.
I will highlight a few concepts from the article.  The first suggestion is to understand how you think.  How the information is presented does influence you.  You can reorganize the information to help make an objective evaluation of the alternatives.
Generally we all are influenced by short-term thinking.  However, college planning is about the long-term.  If you focus on only the cost, you may overlook other information.  In obtaining the lowest out of pocket cost, you may not consider the long term financial ramifications.  Will the monthly payments be affordable?  Will they impact what is available for other children?  Will the required work hours reduce the chances of keeping current with academic pursuits?
Projecting future benefits on first year salaries may dramitically understate the potential benefits.  Starting at a community college with the intent of transferring in the future to a bachelor’s program may reduce the chances of obtaining the bachelor’s degree.
“…for the great majority of students, the time spent in college, forgoing full-time work, has a bigger monetary value than the tuition you pay.”  READ MORE     

Back to Top

Share your thoughts, post a comment.

You must be logged in to post a comment.