No one is smarter than my wife, she came back home to our homeland Philippines to get Nursing Bachelors worth $10k, for 3 years. And Come back to Cali with Nursing Bachelors. Avoided $100k+ student loan. Lol
I’m working 2 jobs because I don’t want to have student loan debt hovering over me. I’m also going to a 2 year college so it shouldn’t be too expensive!
That’s what I did. Went to a 2 year and got my associates and transferred to a state university for my bachelors. Worked out great! Graduated with about 25k in loan debt. Not too bad.
I did a 2 year college I needed one more semester to graduate but transferred to a 4 year college I struggled staying 4 years yes about six years dropped because I failed miserably. Long story short I went back to school got help from a job for undergrad went to grad now in terrible debt I am focusing on very heavily on trying to pay off as fast as I can.
ESA is a bad move, its entire thing is taxable while a 529 isn't. ESA has a max contribution of 2k while a 529 has a limit of 75k (you can open the account with up to 150k). 529 plan have the option to control how the money is invested. It's a false statement from what Dave Ramsey, I setup funds to purchase. If you're concerned about the future of student loans, you can always pull out all of the money from the 529 and only pay a 10% tax, ONLY on the earnings, the rest you contribute is free and clear. ESA mature when the beneficiary turns 18, you don't control the fund (parent) only the beneficiary (child). Also, you have 30 days to withdraw the money once the child turns 18 while a 529 can keep it as long as you live and pass it down to your kids and grandkids. I went with a 529 because its future proof and it does act like a roth, I think its better than a roth since roth has a contributing limit of 6k as of 2020 and can only pull money out @ retirement age without any heavy tax penalties.
Actually this is not true. You have until the beneficiary turns 30. You can also roll over the funds into a College 529 plan. For people with disabilities, the deadline could be longer. ESAs are good because you can pick individual stocks, bonds, funds, etc.
*"The government should get out of the business of hurting its own people"* -Dave Ramsey basically my unwanted, un-asked-for opinion on the student loan crisis in a nut shell.
@@ambitiousmuslimrecordings3451 Moneyology is a term I thought of meaning the interdisciplinary study of economics, finance, and accounting (notwithstanding others perhaps using moneyology prior to me to mean something completely different, as i later found out) Training MMA taught me at a young age there are benefits to mixing skills especially related ones. I find economics, finance, and accounting to be very interrelated, and often times 2 or all 3 of them are overlaping to the point that any dichotomy or trichotomy is completely arbitrary(in my very humble opinion). And since they are all pretty much related to how resources have been or will be used, especially money, I thought they are each basically the study of money(and other resources of course). So to study all three together would be money -ology(the study of) and philosophy because I don't want my channel to just be about financial topics(plenty of youtubers already doing that) when there is so much more to life I'd like to talk about.
@@ambitiousmuslimrecordings3451 thanks man, people underestimate how much hate/disrespect one gets once they put themselves in the public eye. So comments like this motivate me to improve
Seriously we need to cut the obsesion with going to college. Attending college does not equal having a good job anymore. You know what my parent's saving for college was? "Study hard in high school so you can get a scholarship". You won't find anything better than that.
Dude you are so right. I remember as a kid there was always an obsession about going to college. You were made to believe you could only be successful going to college. But the world is changing today on how you can make money
I highly disagree. College is very important, I have decided to go back myself. I cant find a decent paying job anywhere without a degree. The best I can find and with experience is a job that pays $20-$22per hour, but you get worked so hard thats its just not worth it. Quality of life is compromised. Due to high levels of stress, over time, high volume and heavy work loads. Plus you will always be struggling to make ends meet, and goodluck with the mortgage. I have a friend who is a nurse. They make $70.00 dollars the hour and only work 3 days a week. Its a big difference...
@@mikesanchez2731 Many people have great jobs without college. I work in the oil and gas industry as an artist and my position didn't require college. Many of the operators I meet on the field just have high school and were trained to be operators when they were hired, they make around 60k a year. That is just but one example of the many out there. If you live in a 3rd world country like I did, yeah you do need college over there.
@@MR3DDev 60K a year is nothing. After health insurance, taxes, and retirement you're looking at 40ish take home. I went back to school and now make $120K+
Can attest. I have a single parent working at Wal-Mart and 3 siblings. Combined with a merit scholarship and another private need based scholarship, I hardly pay anything for tuition at a 4 year private university.
Brothers ans sisters you gotta be idiots if you think the govt pell grant program and some need based programs handle all your Bill's at a 4 yr university and lets not talk about if you have the grades to get into a top notch program but not the $$$ 😂😂😂😂 There is that privilege again...😆
1:42 - 1:54 - Hmm...I'm in my state's 529 program for both of my kids. I'm not seeing the kind of numbers in returns that Dave briefly outlined in this video now that we're 6 years into it. Our gains have only amounted to $5,500 and our 5 year annualized rate of return is 6.5%
@Jokeasterfe Yea, not sure about that. The plan allows me choose and adjust my investments up to twice a year. We're also getting back 20% of the invested amount per year on our taxes. But 6.5% over the past 6 years in this market is low.
His numbers are if you put in $2000 per year for all 18 years of the child's life until college. Compound interest at his assumed rate of 12.11% per year (1.009% per month) will get your $36,000 total invested into $128,000.
So Dave is against free college, against slashing away the student debt, against federally backed and private student loans, and against tuition costs being so high. So what is he for? I legit wonder what is his solution for a student from a low income background supposed to do if his parents could not open a college savings account for him/her.. no college for them?
He's addressed this plenty of times. He's not against forgiving the existing student loan debt, just that there's no point to doing so if the government keeps backing more loans. So it's fine to eliminate the outstanding debt, if the federally-backed student loans stop first. Plus, with no government-insured guaranteed loans, college tuition costs would probably have to drop, so it should become more affordable. Besides, there are still grants and scholarships available as well.
@@chrisstaub5880 You did something Dave does, and avoided the only question that Christian had. He wants to know how you tell a kid to pay for college who has zero college fund and no help paying for college. The answer used to be, get a job and save up. However, I don't see that as a good answer with in-state colleges charging $90k after all of the merit scholarships for good GPA and ACT score. I just spent the past year researching all of this for my kids and even in our mid-west state, the price is too high to be able to afford with a pre-college job.
@@BradColemanisHere I wasn't avoiding anything, I was simply addressing one of the particular claims they made about what Dave is supposedly "against". As for the question of what a potential college student is to do, there may not be an easy answer. Loans may very well be the only option, at least for now, but at the same time that would just encourage the problem to continue.
You wonder what his solution for a student from a low income background is supposed to do if his parents could not open a college savings account for him/her? You are wondering? Isn't it obvious? When people tell you who they are, believe them the first time.
I get paid $5,000(excessive financial aid) a semester to attend an elite university. Already have 2 minors and working on 2 majors currently. I receive about 23k a year in financial aid. In order to achieve that, you need to have broke parents in which you are dependent on them, and enlist in the national guard. OR, you can take out student loans and graduate with only 1 degree and around 50k in debt lol.
I went to college without debt by working full time for a financial institution and taking advantage of the tuition reimbursement. Nonetheless, I am saving for my daughter’s colleague with a 529. I do not want her to ever have to take a loan.
@@christiancalderon3821 if you open the 529 as an individual account it gets counted as the parent's asset and NOT the student's, check your state and type of account.
@@sydney45 not sure. Google didn't really help me. Found a video of a lady talking about 529 how you can move it to other relatives or can take out the equal amount of scholarships earned tax free. But nothing on esa really. Was hoping to get an answer here but in the 2 months I've watched they've never replied, prob too big of channel lots of comments. Probably just going to talk to an investor when I'm ready I'm still 2 maybe 3 months away
@@TargetTime They usually don't respond to most comments. You can speak with a SmartVestor Pro (a DR vetted financial adviser) to talk you through the options and help you choose the best one for you.
Dave. I just took the FPU and had step one down and then my car needed work so back to building It up. My daughter will be a high school grad 2020. Is It worth It to start and ESA for her even though I don’t have but a year to save?
Consider becoming an entrepreneur if u wanna work for urself and build ur own empire. Disclaimer: U need it to be something your passionate about and have a crazy work ethic. Good luck to your future endeavors
Has anyone ever considered skipping college for a much more simplistic lifestyle? Money is always at the center of everyone’s dreams and decisions, however consider minimizing possessions, resist borrowing money, and working towards self employment, seasonal work and complete mobility and self reliance. Credit based economy is gonna collapse on itself sooner or later.
@C B . Other ways to get an education besides college. You want to be a chef see if you can work with a place hiring with no or little experience. An apprenticeship, work at Dennis as a cook. This is just one example.
Jokeasterfe Money is NOT the key to a simple life.....YOU are the key to a simple life, and what you value! Watch a RUclipsr named Tim Ward.....money is important only when you complicate your lifestyle with debts, stuff, obligations and traps people put on you for how THEY think you should live your life!
everyone having access to a higher education and not be tens or hundreds of thousands in debt would NOT be a disaster. Ramsey i respect you but you are out of touch if you think our population is better off not being more educated.
The problem with student loans starts with corporations and the economy. General speaking, you can't find a decent job making more than $50k without a degree. To be competitive in the market, you must get a master's degree since now a bachelor's degree is the new high school diploma. I make $50k in a warehouse and I only have an associate but I do not want to work in a warehouse for the rest of my life wearing an overall, a hoodie, and steel toe boots. Therefore, the economy is pushing me in continuing my education and get a bachelor's degree hoping to get a better job.
Or you can look into learning a trade and spending a very small fraction of what a normal tuition is and getting a job making over 60k year starting out with no debt. The alternative is opening your own business which doesn't always work out for most people.
After five years of marriage i found out the one thing that makes it difficult is financial struggle, its not like my husband and i aren’t making money it’s just we barely have time for each other and there’s no amusement or new event it’s just work and the kids and that was fine but i wanted more..then i heard of a financial advisor on the radio who basically makes money for me and right now i have close to 100grand with her in my portfolio. now we pay for our vacation without breaking a sweat or losing sleep
I am a liberal and I like this show. My brain dease of wanting to care about my fellow human beings haven't stopped me from seeking financial knowledge.
Josh S obvisouly you are not informed on how they would pay for higher public education.. they would start taxing CORPORATIONS their fair share in taxes 😴
As a Norwegian, its hard to wrap my mind around the fact that someone would opposite ” free edication”. As we all know, nothing is. The goverment gives us money for books, etc, however we pay nothing to the university. This loan has a max yearly limit. If you graduate/finish yearly, 20% of the loan is awarded to you for free. The rest is on a fixed interest rate of 1% for the rest of your life. So its easy to pay it back. This applies wheter you are studying to become a dentist or a historian. We have a high restribution of wealth. What I can see from these videos is a load of people making an enormous amount of money, and the rest almost nothing. Its weird to see that this is a system anyone would like to have and live under. Its like insanly strict laws, at the point you have nothing left to loose, you start seeing dangerous development.
I love the financial info Dave provides and have utilized some to achieve debt freedom, but saying liberals have a brain disease and the way he insults entire sects of people is so off-putting sometimes. I wish he could be a bit more “Christian” in his speech since that’s what he professes to be.
Not a fan of 529s-never did any. Just invest fully in your 401K or IRA with deferred taxes. You can use money from those accounts for education, with the amount based on what you actually need or want to do. No withdrawal penalty, and it often qualifies as tax deduction or credits.
@JokeasterfeFund Roth if you are in low tax bracket. But 401K lets you put the most in yearly, enough to cover college after 18 years and retirement-keeps it very simple. If you income is high, you can fund college regardless of your investment choice and don't need to ask Dave for help..
There are many excellent jobs that don't require a college degree. Obviously, everyone's different but there are some great options to consider. I just made a video of high paying jobs that don't require degrees.
I agree. A friend was making 120K in a computer field without a degree before he turned 30. He completed his degree later taking night classes. Another friend built a business that employs more than 50 people prior to earning his degree at night (in his 30s). Find a lucrative path or vocation and pay for college as you go. In most fields employers don't care if you went to an expensive private university or earned an AA in community college and finished at a state university.
You can give sound advice without dwelling negativity into politics . I respect what you had to say until you called being a “liberal a brain disease.” Really Ramsey ??
Saving for college is not a good investment if your child belongs in college they will be be paid to go ie full scholarship otherwise your child is going only have a 13% chance of getting a good paying job.
@@JK20239 I sort of agree with you. Find a specialized track that you want to excel at. Bypass the general stuff and become really good at a niche skillset that is highly sought after and valuable. There is too much fluff in college that is just flat out useless and at the same time costs you a lot of money.
I like Dave’s advice but when he gets religious or political then I tune out. The whole “liberalism is a brain disease” comment was stupid, but the financial advice was sound. Pick your battles, people.
Stephen Hooper I guess reading comprehension isn’t your forte. I said I enjoy Dave’s advice, but I do not care about his political or religious ravings. I’ll still listen to his financial advice.
Mr Ramsey, i consider myself a person with an economical ideology align with yours. But i think we shouldn't cap the amount a student can borrow to go to school, nor refuse to lend money for school, yes we should put a hold into the madness the student loan is. There are some degrees that require you to study full time (and by full time i mean 40+ 40 hours a week) you have to get a loan for that, and also when credit hours cost you 2.5k per credit hour and the final cost of tuition for a program of 4 semesters is 55k, you can't humanely afford to pay that upfront (that's when the student loans kick in) And who knows, maybe Her highness can find a way to solve it (or at least put a hold into the exorbitant APR).
It shouldnt be federally insured. If someone wants to borrow money for school, have them get private loans. Private institutions would put limits on what you could borrow for what degree and the default rate would go down.
@C B if the debt is discarded with bankruptcy that will cause another crysis. But on the other hand the student loan program is there to help people get out of poverty, not forcing people into default. The interest rate should be near to 0, and the schools held accountable for unnecessary fees and costs (administrative and fraternities)
@@Ray-md9nr There will always be crises. The way a capitalistic system deals with these crises is through bankruptcy. In other systems those crises just keep going and going. I know it seems counterintuitive, but this merciful gift of death for failures is capitalisms great strength. And so it is here: if lenders knew that they could lose all their money, they would suddenly think twice about lending 200.000 $ to someone studying interpretive dance. The schools would then have to think about their prices and the actual value of their courses relative to these costs. And any individual who had dug themselves in a hole due to bad luck or stupidity, could get out from under as if their bad luck or stupidity had happened outside of the education field.
I hate how he falsely demonizes liberals or democratic socialism, yes your entitled to your “opinion” but keep it to your self jeez I work 40 hours a week , school full time , I’m not “entitled” , “spoiled” , or any other terms I see him use through out his show against liberal views or young ppl in general
So what happens if you save in a ESA or a 529 and you got all this money saved and your child get a scholarship.... do they lose the scholarship because they have money set aside for them in one of these savings account???
You don't lose unused money in a 529 plan. ... You can withdraw the amount of any scholarship awards from your 529 without penalty; federal and state income taxes on the earnings still apply.
@@ksanders6166 the is is relative based on person from person but I think that we can agree on key features of a good student or what's not a good student
because politics plays a major role in her question about what it will look like in 18 years. Because the politicians will make legislature to spend government money related to her questions.
Came here for factual information on the different savings programs. Got some old fart’s unsophisticated opinion on policy. It’s almost impossible to get away from the debate, even when it’s got nothing to do with it.
Ryan K. You are right BUT the topic of the video is not economics. It’s about college savings plans. The author just can’t help overshare his opinion on a topic he knows little about (ie: economics) when we are here for information about personal finance, something he is actually knowledgeable about.
Mr. Carroll Ware he says that all the time. Normal is broke. He encourages people to live like no one else so later they can live and give like no one else
The best method for getting into a good college and not have debt is to save a ton of money then bride someone to cheat on her ACT/SAT so she gets into a "prestige" (I use that loosely) college. Win win!
Moses Yang By cheating on ACT/SAT you will be expected to perform exceptionally well at a “prestige” and you obviously won’t be able to, causing you to drop out and waste time
Dave is cool but he’s kinda ignorant. How is moving around our government money to help fund education a bad thing? I knew kids who got into d1 schools or got opportunities to go to good schools that couldn’t go because of the financial cost. How is helping them out a bad thing? Not very Christlike of you ask me. Oh, but to send our kids to war? No problem -_-
@B B Germany France I mean all other countries educate their students at a much cheaper price and more effectively than us. The problem is not only that college is not free but it's way over priced. I'm just saying free college can be good when done right. A higher population doesn't effect that, the politicians and corrupt school officials create the high costs
Dear lord. I just wanted an answer to a legitimate financial question. I couldn’t stick around for the answer while he flapped his political yap trap. Keep politics in politics. The ceaseless stream of political bitching is why nothing gets done in this country anymore. Stay in your lane and I’ll stay in mine.
The idea between federally insured student loans wasn't a bad one but the execution was horrendous. First of all student loans should be limited so people can not borrow more than they can pay back. This would also mean people would be required to fully explore other options. I have heard of scholarships that have too few applicants to even pay out their minimum requirements. If you want to really help people to be able to afford college than you should not secure loans with private banks that charge higher interest and make the loans undefaultable. Instead create your own program, where the loans are given out directly by the government.
@B B don't devalue my knowledge just because you don't agree.... your only argument was the amount of people as though that meant something lol p.s I am college educated with a political science degree so yea...
As long as there is a State and the rulers behind them, there will be colleges. Great propaganda machine, not to mention a great tool to get people more into servitude.
Student loans are a serious problem, not only for those in debt but for our economy.
No one is smarter than my wife, she came back home to our homeland Philippines to get Nursing Bachelors worth $10k, for 3 years. And Come back to Cali with Nursing
Bachelors. Avoided $100k+ student loan. Lol
1:33 if you want to get past all of the babbling
Thank you
I’m working 2 jobs because I don’t want to have student loan debt hovering over me. I’m also going to a 2 year college so it shouldn’t be too expensive!
Very smart
That’s what I did. Went to a 2 year and got my associates and transferred to a state university for my bachelors. Worked out great! Graduated with about 25k in loan debt. Not too bad.
When you are 30 you will be proud of yourself in your 20’s if you can graduate debt free or close to it. Avoid long term debt as much as you can.
I did a 2 year college I needed one more semester to graduate but transferred to a 4 year college I struggled staying 4 years yes about six years dropped because I failed miserably. Long story short I went back to school got help from a job for undergrad went to grad now in terrible debt I am focusing on very heavily on trying to pay off as fast as I can.
SUPER GENIUS. People don't listen at all. GO TO A GOOD COMMUNITY COLLEGE AND SAVE MONEY. OR TO FINLAND OR SWEDEN AND TUITION IS FREEEEEEEEEEE
ESA is a bad move, its entire thing is taxable while a 529 isn't.
ESA has a max contribution of 2k while a 529 has a limit of 75k (you can open the account with up to 150k). 529 plan have the option to control how the money is invested. It's a false statement from what Dave Ramsey, I setup funds to purchase.
If you're concerned about the future of student loans, you can always pull out all of the money from the 529 and only pay a 10% tax, ONLY on the earnings, the rest you contribute is free and clear.
ESA mature when the beneficiary turns 18, you don't control the fund (parent) only the beneficiary (child). Also, you have 30 days to withdraw the money once the child turns 18 while a 529 can keep it as long as you live and pass it down to your kids and grandkids.
I went with a 529 because its future proof and it does act like a roth, I think its better than a roth since roth has a contributing limit of 6k as of 2020 and can only pull money out @ retirement age without any heavy tax penalties.
Actually this is not true. You have until the beneficiary turns 30. You can also roll over the funds into a College 529 plan. For people with disabilities, the deadline could be longer. ESAs are good because you can pick individual stocks, bonds, funds, etc.
Jesus it took her forever getting that question out.
HD definition of these videos is amazing!
Roth grows tax free that you can use for anything. If you have enough to fill your Roth and still had more each year...
The best option is one you know you can stick to. Auto deposits from each paycheck? Putting $50/week away? Skipping college in the first place?
Genius
Daniel Iles - I came here for his advice... might leave with yours ! 🤔
*"The government should get out of the business of hurting its own people"* -Dave Ramsey
basically my unwanted, un-asked-for opinion on the student loan crisis in a nut shell.
Moneyology?
@@ambitiousmuslimrecordings3451 Moneyology is a term I thought of meaning the interdisciplinary study of economics, finance, and accounting (notwithstanding others perhaps using moneyology prior to me to mean something completely different, as i later found out)
Training MMA taught me at a young age there are benefits to mixing skills especially related ones. I find economics, finance, and accounting to be very interrelated, and often times 2 or all 3 of them are overlaping to the point that any dichotomy or trichotomy is completely arbitrary(in my very humble opinion). And since they are all pretty much related to how resources have been or will be used, especially money, I thought they are each basically the study of money(and other resources of course). So to study all three together would be money -ology(the study of)
and philosophy because I don't want my channel to just be about financial topics(plenty of youtubers already doing that) when there is so much more to life I'd like to talk about.
@@Je.rone_ wow that's very insightful and interesting!!! God bless your channel and your hard work!
@@ambitiousmuslimrecordings3451 thanks man, people underestimate how much hate/disrespect one gets once they put themselves in the public eye. So comments like this motivate me to improve
A lot of people have a problem with student loans...
🙄🙌
Seriously we need to cut the obsesion with going to college. Attending college does not equal having a good job anymore. You know what my parent's saving for college was? "Study hard in high school so you can get a scholarship". You won't find anything better than that.
Exactly! It starts with the parents. I only went because my parents pressured/forced me to attend. Lol
Dude you are so right. I remember as a kid there was always an obsession about going to college.
You were made to believe you could only be successful going to college. But the world is changing today on how you can make money
I highly disagree. College is very important, I have decided to go back myself. I cant find a decent paying job anywhere without a degree. The best I can find and with experience is a job that pays $20-$22per hour, but you get worked so hard thats its just not worth it. Quality of life is compromised. Due to high levels of stress, over time, high volume and heavy work loads. Plus you will always be struggling to make ends meet, and goodluck with the mortgage. I have a friend who is a nurse. They make $70.00 dollars the hour and only work 3 days a week. Its a big difference...
@@mikesanchez2731 Many people have great jobs without college. I work in the oil and gas industry as an artist and my position didn't require college. Many of the operators I meet on the field just have high school and were trained to be operators when they were hired, they make around 60k a year. That is just but one example of the many out there. If you live in a 3rd world country like I did, yeah you do need college over there.
@@MR3DDev 60K a year is nothing. After health insurance, taxes, and retirement you're looking at 40ish take home. I went back to school and now make $120K+
Where does one need to go to start putting money in an ESA?
Y’all have parents that helped you pay for college / university ? Can’t relate
Can attest. I have a single parent working at Wal-Mart and 3 siblings. Combined with a merit scholarship and another private need based scholarship, I hardly pay anything for tuition at a 4 year private university.
Brothers ans sisters you gotta be idiots if you think the govt pell grant program and some need based programs handle all your Bill's at a 4 yr university and lets not talk about if you have the grades to get into a top notch program but not the $$$ 😂😂😂😂 There is that privilege again...😆
My kids are doing what I did-getting scholarships
1:42 - 1:54 - Hmm...I'm in my state's 529 program for both of my kids. I'm not seeing the kind of numbers in returns that Dave briefly outlined in this video now that we're 6 years into it. Our gains have only amounted to $5,500 and our 5 year annualized rate of return is 6.5%
@Jokeasterfe Yea, not sure about that. The plan allows me choose and adjust my investments up to twice a year. We're also getting back 20% of the invested amount per year on our taxes. But 6.5% over the past 6 years in this market is low.
Because college is a scam. There's at least a 5-10% college inflation rate. Your savings wont even be able to cover the costs.
His numbers are if you put in $2000 per year for all 18 years of the child's life until college. Compound interest at his assumed rate of 12.11% per year (1.009% per month) will get your $36,000 total invested into $128,000.
So Dave is against free college, against slashing away the student debt, against federally backed and private student loans, and against tuition costs being so high. So what is he for? I legit wonder what is his solution for a student from a low income background supposed to do if his parents could not open a college savings account for him/her.. no college for them?
He's addressed this plenty of times. He's not against forgiving the existing student loan debt, just that there's no point to doing so if the government keeps backing more loans. So it's fine to eliminate the outstanding debt, if the federally-backed student loans stop first. Plus, with no government-insured guaranteed loans, college tuition costs would probably have to drop, so it should become more affordable. Besides, there are still grants and scholarships available as well.
@@chrisstaub5880 You did something Dave does, and avoided the only question that Christian had. He wants to know how you tell a kid to pay for college who has zero college fund and no help paying for college. The answer used to be, get a job and save up. However, I don't see that as a good answer with in-state colleges charging $90k after all of the merit scholarships for good GPA and ACT score. I just spent the past year researching all of this for my kids and even in our mid-west state, the price is too high to be able to afford with a pre-college job.
@@BradColemanisHere I wasn't avoiding anything, I was simply addressing one of the particular claims they made about what Dave is supposedly "against". As for the question of what a potential college student is to do, there may not be an easy answer. Loans may very well be the only option, at least for now, but at the same time that would just encourage the problem to continue.
You wonder what his solution for a student from a low income background is supposed to do if his parents could not open a college savings account for him/her? You are wondering? Isn't it obvious? When people tell you who they are, believe them the first time.
The one going to school picks a cheap school option and works. It’s doable.
If I have two kids do I need two 529 plans or can you use one 529 plan for both ?
What financial vehicle will accumulate more cash value? An Indexed Universal Life or a Whole Life Policy?
If you have a 529 and dont have kids can you use it as a retirement fund at 65?
what about Gerber Life Insurance? Can't you use that as a dual plan to save for college and insurance policy if the childs passes away
I’m going to start saving for college and my plan is to save $20,000 after 4 years in college so my coal is to pay off my loans right after I graduate
Great, keep in mind the ESA can only have $2,000 added per year, so you may want to open a 529 as well for excess contributions over 2k/year.
I get paid $5,000(excessive financial aid) a semester to attend an elite university. Already have 2 minors and working on 2 majors currently. I receive about 23k a year in financial aid. In order to achieve that, you need to have broke parents in which you are dependent on them, and enlist in the national guard. OR, you can take out student loans and graduate with only 1 degree and around 50k in debt lol.
I recommend The College Specialist based in Irvine California. You can find his website online. He really can help.
I went to college without debt by working full time for a financial institution and taking advantage of the tuition reimbursement. Nonetheless, I am saving for my daughter’s colleague with a 529. I do not want her to ever have to take a loan.
Europeans graduate debt free because they dont need to pay for college...touche
529 is a scam.
Rather open a ROTH IRA ACCOUNT. A 529 will hinder her receiving financial aid
Sounds good, let’s pay 70% income tax so everyone can go to college “for free”
@@christiancalderon3821 if you open the 529 as an individual account it gets counted as the parent's asset and NOT the student's, check your state and type of account.
@@carritohmc WRONG!!!!
What happens on esa if child doesn't goto college. is the balance withdrawn at normal tax rates or crazy penalty fee?
I know 529s can be handed to a relative. Maybe ESA's are similar?
@@sydney45 not sure. Google didn't really help me. Found a video of a lady talking about 529 how you can move it to other relatives or can take out the equal amount of scholarships earned tax free. But nothing on esa really. Was hoping to get an answer here but in the 2 months I've watched they've never replied, prob too big of channel lots of comments. Probably just going to talk to an investor when I'm ready
I'm still 2 maybe 3 months away
@@TargetTime They usually don't respond to most comments. You can speak with a SmartVestor Pro (a DR vetted financial adviser) to talk you through the options and help you choose the best one for you.
Dave. I just took the FPU and had step one down and then my car needed work so back to building It up. My daughter will be a high school grad 2020. Is It worth It to start and ESA for her even though I don’t have but a year to save?
She Is gonna go with a community college BTW Instead of going away to an Undergrad college.
So at this point, cash Is her best bet along with any grants or aid. Ok thank you!
everyone be ready i’m getting on the show tomorrow i’m 18 going to college
and i got hella guap i need helps managing
Consider becoming an entrepreneur if u wanna work for urself and build ur own empire. Disclaimer: U need it to be something your passionate about and have a crazy work ethic. Good luck to your future endeavors
529 provides housing even at half time no matter community college or private correct?
thanks also some apps may help like College souk
Don't go
Is it true you can not open/contribute to an ESA if you make over $110k as an individual or $220k married filing jointly?
Cool great video
Has anyone ever considered skipping college for a much more simplistic lifestyle? Money is always at the center of everyone’s dreams and decisions, however consider minimizing possessions, resist borrowing money, and working towards self employment, seasonal work and complete mobility and self reliance. Credit based economy is gonna collapse on itself sooner or later.
C B
Good! working is good, goals are also good! No arguments from me.
C B
No, education is just fine.
@C B . Other ways to get an education besides college. You want to be a chef see if you can work with a place hiring with no or little experience. An apprenticeship, work at Dennis as a cook. This is just one example.
Jokeasterfe
Money is NOT the key to a simple life.....YOU are the key to a simple life, and what you value! Watch a RUclipsr named Tim Ward.....money is important only when you complicate your lifestyle with debts, stuff, obligations and traps people put on you for how THEY think you should live your life!
everyone having access to a higher education and not be tens or hundreds of thousands in debt would NOT be a disaster. Ramsey i respect you but you are out of touch if you think our population is better off not being more educated.
Do ESA or 529 offer index fund investments?
cookies8222 It should. When you look into the 529, make sure it has the funds you want. I have a 529 for my kids invested in an S&P 500 index fund.
The problem with student loans starts with corporations and the economy. General speaking, you can't find a decent job making more than $50k without a degree. To be competitive in the market, you must get a master's degree since now a bachelor's degree is the new high school diploma. I make $50k in a warehouse and I only have an associate but I do not want to work in a warehouse for the rest of my life wearing an overall, a hoodie, and steel toe boots. Therefore, the economy is pushing me in continuing my education and get a bachelor's degree hoping to get a better job.
Or you can look into learning a trade and spending a very small fraction of what a normal tuition is and getting a job making over 60k year starting out with no debt. The alternative is opening your own business which doesn't always work out for most people.
After five years of marriage i found out the one thing that makes it difficult is financial struggle, its not like my husband and i aren’t making money it’s just we barely have time for each other and there’s no amusement or new event it’s just work and the kids and that was fine but i wanted more..then i heard of a financial advisor on the radio who basically makes money for me and right now i have close to 100grand with her in my portfolio. now we pay for our vacation without breaking a sweat or losing sleep
wow impressive, if she is a woman i would like to get to her
i was literally just worried about the exact same thing. may i know your FA please it’s urgent?
sure i get it dear. her name is Lucy Maria Koss, i googled her and reached out to her from her website. Goodluck with your wedding hun!
Shut up
I am a liberal and I like this show.
My brain dease of wanting to care about my fellow human beings haven't stopped me from seeking financial knowledge.
Josh S obvisouly you are not informed on how they would pay for higher public education.. they would start taxing CORPORATIONS their fair share in taxes 😴
As a Norwegian, its hard to wrap my mind around the fact that someone would opposite ” free edication”. As we all know, nothing is. The goverment gives us money for books, etc, however we pay nothing to the university. This loan has a max yearly limit. If you graduate/finish yearly, 20% of the loan is awarded to you for free. The rest is on a fixed interest rate of 1% for the rest of your life. So its easy to pay it back. This applies wheter you are studying to become a dentist or a historian. We have a high restribution of wealth. What I can see from these videos is a load of people making an enormous amount of money, and the rest almost nothing. Its weird to see that this is a system anyone would like to have and live under. Its like insanly strict laws, at the point you have nothing left to loose, you start seeing dangerous development.
With a ESA, if the kid does not go to school can you transfer that money to a retirement fund for them or is it lost?
Kyle Morrison
There will always be a 10% penalty if you take the money out for any reason that is not school related. Plus all the gains are taxed.
got a hardware wallet, earn 5-15% a year on stable coins and they can decide what they want to spend it on
I love the financial info Dave provides and have utilized some to achieve debt freedom, but saying liberals have a brain disease and the way he insults entire sects of people is so off-putting sometimes. I wish he could be a bit more “Christian” in his speech since that’s what he professes to be.
Antonni Shingles Agreed. Very disappointing. How Christian of him.....🙄
He’s just telling it like it is snowflake
I think at this point most of America agrees with him. You know if it wasn't true you wouldn't be so upset about it.
Pay for your college or don’t go at all.
this is paying for college?
Not a fan of 529s-never did any. Just invest fully in your 401K or IRA with deferred taxes. You can use money from those accounts for education, with the amount based on what you actually need or want to do. No withdrawal penalty, and it often qualifies as tax deduction or credits.
but, if your already maxing out your 401k, there is no other choice
@JokeasterfeFund Roth if you are in low tax bracket. But 401K lets you put the most in yearly, enough to cover college after 18 years and retirement-keeps it very simple. If you income is high, you can fund college regardless of your investment choice and don't need to ask Dave for help..
There are many excellent jobs that don't require a college degree. Obviously, everyone's different but there are some great options to consider.
I just made a video of high paying jobs that don't require degrees.
Chris Invests subbed
You have some good content 😃 you sound pretty knowledgeable on investing. Did you learn from Dave or somewhere else?
I agree. A friend was making 120K in a computer field without a degree before he turned 30. He completed his degree later taking night classes. Another friend built a business that employs more than 50 people prior to earning his degree at night (in his 30s). Find a lucrative path or vocation and pay for college as you go. In most fields employers don't care if you went to an expensive private university or earned an AA in community college and finished at a state university.
What is ESA ??
Education savings account
You can give sound advice without dwelling negativity into politics . I respect what you had to say until you called being a “liberal a brain disease.” Really Ramsey ??
took her almost 2 mins to ask a question. surprised he didnt tell her to spit it out
Why would free college be a disaster???
Why is free K-12 a disaster?
@@mockingbirdwishmeluck6403 Exactly, It's not....
My son is a freshman I need help with saving money for him .
Saving for college is not a good investment if your child belongs in college they will be be paid to go ie full scholarship otherwise your child is going only have a 13% chance of getting a good paying job.
Are you ever going to answer the question in the title?
So is a 529 better? Or is the ESA?
Save your money and not go to college is best....
@@JK20239 I sort of agree with you. Find a specialized track that you want to excel at. Bypass the general stuff and become really good at a niche skillset that is highly sought after and valuable. There is too much fluff in college that is just flat out useless and at the same time costs you a lot of money.
Save money, go to trade school (if it suits you)....
Ummm u still ppl with degrees my brotha like um.. teachers lol etc
Agree with you people I know that took up a trade are making excellent money because of the demand.
I've been thinking a lot about college savings lately. It feels overwhelming.
Yeah, same here. I've heard that Nelson Maynard Fisher gives great advice on this topic.
Really? What's his approach?
Fisher focuses on practical strategies, like starting early and using 529 plans.
I've read some of his articles. He breaks down complex ideas into simple steps.
Does he have any unique insights?
I like Dave’s advice but when he gets religious or political then I tune out. The whole “liberalism is a brain disease” comment was stupid, but the financial advice was sound. Pick your battles, people.
You don’t have to listen. Your choice you know what he believes and his views so if that bothers you change the channel
Stephen Hooper I guess reading comprehension isn’t your forte. I said I enjoy Dave’s advice, but I do not care about his political or religious ravings. I’ll still listen to his financial advice.
whysoblutube you like his financial advice but not his political advice .....interesting
His faith is the foundation of his political and fiscal advice... not complicated. Crybaby
Leftism is a disease...I’m also certain.
I won’t want socialized military
Mr Ramsey, i consider myself a person with an economical ideology align with yours.
But i think we shouldn't cap the amount a student can borrow to go to school, nor refuse to lend money for school, yes we should put a hold into the madness the student loan is.
There are some degrees that require you to study full time (and by full time i mean 40+ 40 hours a week) you have to get a loan for that, and also when credit hours cost you 2.5k per credit hour and the final cost of tuition for a program of 4 semesters is 55k, you can't humanely afford to pay that upfront (that's when the student loans kick in)
And who knows, maybe Her highness can find a way to solve it (or at least put a hold into the exorbitant APR).
It shouldnt be federally insured. If someone wants to borrow money for school, have them get private loans. Private institutions would put limits on what you could borrow for what degree and the default rate would go down.
ray, the federal loan guarantee is WHY the school is so expensive.
If you don't finish school, what happens?
Why aren't schools liable for students defauling?
Why is the interest rate so high?
@C B if the debt is discarded with bankruptcy that will cause another crysis. But on the other hand the student loan program is there to help people get out of poverty, not forcing people into default. The interest rate should be near to 0, and the schools held accountable for unnecessary fees and costs (administrative and fraternities)
@@Ray-md9nr There will always be crises. The way a capitalistic system deals with these crises is through bankruptcy. In other systems those crises just keep going and going. I know it seems counterintuitive, but this merciful gift of death for failures is capitalisms great strength.
And so it is here: if lenders knew that they could lose all their money, they would suddenly think twice about lending 200.000 $ to someone studying interpretive dance. The schools would then have to think about their prices and the actual value of their courses relative to these costs. And any individual who had dug themselves in a hole due to bad luck or stupidity, could get out from under as if their bad luck or stupidity had happened outside of the education field.
Yep you are the first to ever ask that 🙄
I hate how he falsely demonizes liberals or democratic socialism, yes your entitled to your “opinion” but keep it to your self jeez I work 40 hours a week , school full time , I’m not “entitled” , “spoiled” , or any other terms I see him use through out his show against liberal views or young ppl in general
Elias Lozano and we hate how liberals want more and more of our money! Get out of my pockets and I will forget about you
The key words there are "his show" dont like it then it may not be the show for you.
Kyle Morrison your 40 yrs old
@@Friedass i am? When did that happen?
Liberalism is a disease...
So what happens if you save in a ESA or a 529 and you got all this money saved and your child get a scholarship.... do they lose the scholarship because they have money set aside for them in one of these savings account???
You don't lose unused money in a 529 plan. ... You can withdraw the amount of any scholarship awards from your 529 without penalty; federal and state income taxes on the earnings still apply.
What kind of ESA does your grand babies have?
Would you support free college tuition for "good" students ?
What constitutes a good student?
@@ksanders6166 "good" question
@@ksanders6166 the is is relative based on person from person but I think that we can agree on key features of a good student or what's not a good student
I dont encourage my kids to go to college, unless they want to... am i bad mom? I feel like u dont need college to have a great feature
Quit shielding student loans from bankruptcy and watch how quickly student debt goes down.
Dave is so political with this question.
Came here to get info, got a political rant and some info.
Good grief Dave, why does everything have to be so political. It was a simple question and you turned it into a semi rant about liberals.
because politics plays a major role in her question about what it will look like in 18 years. Because the politicians will make legislature to spend government money related to her questions.
Because your side loves taxing people!!
Came here for factual information on the different savings programs. Got some old fart’s unsophisticated opinion on policy. It’s almost impossible to get away from the debate, even when it’s got nothing to do with it.
Economic climate and political climate go hand in hand
Ryan K. You are right BUT the topic of the video is not economics. It’s about college savings plans. The author just can’t help overshare his opinion on a topic he knows little about (ie: economics) when we are here for information about personal finance, something he is actually knowledgeable about.
Dave your not a regular person.
Mr. Carroll Ware he says that all the time. Normal is broke. He encourages people to live like no one else so later they can live and give like no one else
That's a good thing
College is a S C A M....
Josh
Ignorance turns anything into a scam.
Yeah I disagree....college is great of done the proper way
It's just all the debt you accumulate going to college.
The best method for getting into a good college and not have debt is to save a ton of money then bride someone to cheat on her ACT/SAT so she gets into a "prestige" (I use that loosely) college. Win win!
Moses Yang By cheating on ACT/SAT you will be expected to perform exceptionally well at a “prestige” and you obviously won’t be able to, causing you to drop out and waste time
@@Bhasker7474 tell that to the rich kids & their parents getting sued right now...obviously the kids are still in school so it cannot be that hard
Dave is cool but he’s kinda ignorant. How is moving around our government money to help fund education a bad thing? I knew kids who got into d1 schools or got opportunities to go to good schools that couldn’t go because of the financial cost. How is helping them out a bad thing? Not very Christlike of you ask me. Oh, but to send our kids to war? No problem -_-
I mean every other developmented nation has free or subsidized college and its not a disaster for them ?
@B B Switzerland, Norway, Denmark. Lichtenstein should I go on ? Lol
@B B Germany France I mean all other countries educate their students at a much cheaper price and more effectively than us. The problem is not only that college is not free but it's way over priced. I'm just saying free college can be good when done right. A higher population doesn't effect that, the politicians and corrupt school officials create the high costs
@B B higher population means more people to pay for the college. I mean I dont see it as that but agree to disagree
Love the jab at Liz "Pocahontas" Warren.
Dave keep your personal political opinions to yourself. Stay on topic and talk finances.
Dear lord. I just wanted an answer to a legitimate financial question. I couldn’t stick around for the answer while he flapped his political yap trap. Keep politics in politics. The ceaseless stream of political bitching is why nothing gets done in this country anymore. Stay in your lane and I’ll stay in mine.
2:49 Correction: Chief
The idea between federally insured student loans wasn't a bad one but the execution was horrendous. First of all student loans should be limited so people can not borrow more than they can pay back. This would also mean people would be required to fully explore other options. I have heard of scholarships that have too few applicants to even pay out their minimum requirements.
If you want to really help people to be able to afford college than you should not secure loans with private banks that charge higher interest and make the loans undefaultable. Instead create your own program, where the loans are given out directly by the government.
Kids don’t go to college unless you are going for free. It’s not worth it.
Dave, it pains me to hear your opinions of the left. Don't push away the 50% who need your help.
Dan Sullivan I dont think hes trying to push anyone away
He actually said liberals, I believe he meant the Left, which is different from classical down to earth liberals.
I, a Democrat tried to listen to Ramsey about advice then he starts babbling about Liberals and brain disease.....i tried LOLOLOLOL
Well people like you! A Canaanite in 2021 is babbling because it hurts being on the wrong side!!
Huh
I like when you don’t include liberals.... it shows your true colors..... it has worked for countries.... Denmark
B B yes and mostly similar economic, race and religious backgrounds. That does make a difference
Don’t listen then
@B B SO IT SHOULD WORK LOL
@@mxerb5912 HUSH
@B B don't devalue my knowledge just because you don't agree.... your only argument was the amount of people as though that meant something lol
p.s I am college educated with a political science degree so yea...
As long as there is a State and the rulers behind them, there will be colleges. Great propaganda machine, not to mention a great tool to get people more into servitude.
I think there’s 157 liberals who accidentally clicked on this lol. Great info Dave, thank you!