As I've shared this idea around the country, I have found that I'm not the only parent who has decided to avoid spending tons of money on unsettled youth with whimsical aspirations and no financial responsibilities.
And the truth is that most people facing retirement years just can't afford to flush multi-thousands of dollars, no matter how much they love their children. Education money must be well spent.
Some parents have told me about a "first lap" plan in which the child pays for his or her freshman year. If they end that year with a decent GPA, the parents pay the additional three years. Not a bad idea, especially considering how many freshmen select a major not in liberal arts but liberal parties.
With so many kids dawdling through five or six years of undergraduate work, some parents offer bonuses if their children finish early.
Many parents are frustrated that their child doesn't take much interest in his or her expensive education if Mom and Dad paid for it. One parent told me that since his children didn't contribute toward college, they didn't feel any urgency to get a job. He wasn't thrilled about having 28-year-olds at home.
With my own family, our journey through college is not yet over. But we have learned that our plan has encouraged our kids to develop a good work ethic, to be more prepared when they enter college, to remain focused on courses that will be valuable to their lives and to understand why they are there.
Hardworking, focused and prepared ... I don't know of a college course that teaches those life skills. Perhaps it is something you can learn only if you have skin in the game.
©2010 Mitch Anthony. All rights reserved. Mitch is the president of the Financial Life Planning Institute and Advisor Insights Inc. He is an industry leader in training advisors on building life-centered relationships.