Send in the double negative police; my headline is a disaster. A bigger disaster, however, would be a family delaying a student's entry into college or pulling a student out of college because of economic concerns. Everything we know about what it takes to find opportunities in today's world revolves around education, credentialing, competing in a global and knowledge-based economy. Those with limited education are likely to find their earnings limited, not to mention fewer doors opening.
I received a call last week from a very articulate woman who had lost her job as a telephone operator. She spent 13 years in that job, yet knew she could not afford the luxury of sitting around and feeling sorry for herself. She was looking for direction in identifying an educational path, knew that her current skill set would not suffice, and was prepared to further her education to make herself employable in today's marketplace. When we finished talking, she was ready to look into community college options for certificate programs in her field of interest.
My traditional-age college advisees seem more focused than ever on their choices and application work this year. And in recent weeks, a number of media reports have pointed to greater numbers of applicants to graduate programs in fields like law and business. Historically, we have seen an inverse correlation between economic opportunity and higher education: when the economy shrinks and employment opportunities grow scarce, people with foresight return to or continue in school to expand their skill set or deepen their professional knowledge.
Invest in yourself and in your children's future
Years ago, as a young professional, a colleague offered some of the wisest counsel I have received in my life: invest in yourself for the best future returns. That's right; if you have funds to invest, plow them into further education or seeding a venture you have dreamed of. If you have time to invest, think of how you can spend it to improve your own life, and thus the lives of others. Can you imagine a successful business that does not invest in research and development, or a professional practice that does not invest in continuing education? Of course not. Why should we view our own lives any differently?
The corollary of this formula is, of course, invest in your children. Invest in their future, rather than squandering small sums that add up to larger sums in the present. Imagine what might have accumulated had you said no to even half of your teenager's requests for new jeans, new shoes, new cell phones and other expensive trinkets.
Don't be afraid to discuss the cost of all of these things with your children. Help them see what's important to you and how to make intelligent choices for the long term. Teach them that the "purchase" of education may be the most pivotal choice of their lives.
About investing for college
This column was conceived in September, which was National College Savings Month. At that time, the Kentucky Higher Education Assistance Authority and TIAA-CREF were publicizing new enhancements to the Kentucky Education Savings Plan Trust (KESPT). I took part in a wonderfully energizing meeting, involving staff from each organization and a nationally known personal finance writer.
We discussed KESPT's new investment options, as well as 529 college savings plans generally. We shared a vision about the importance of investing for the future. Since then, the bottom has dropped out of the stock market. Many families contemplating college costs are frightened. Those who invested in stocks or stock funds are flabbergasted by their diminishing statement balances. Colleges are also facing the possibility of financial exigency as endowment returns shrink and financial aid requests grow.
Do not let the stock market's tumble deter you from saving for college. KESPT offers five options, ranging from an active equity fund all the way to an option that guarantees your principle and a conservative return on that principle. They have staff to answer questions for you, and to guide your investment choices. Whether or not you choose to invest in a 529 savings plan, don't give up saving. Don't give up the dreams you and your children have for their future.
You're concerned that you can't afford to have them go on to college? They can't afford not to go.
Jane S. Shropshire guides students and families through the college search process, drawing on over a decade of college admission experience. Send questions or suggestions to JShrop@att.net or visit Shropshire Educational Consulting, LLC at www.ShropEd.net.