Preschool Costs More Than College?
28 October 2006Apparently that’s true in pricey parts of California - preschool costs range up to nearly $25,000 for more exclusive private schools. I think at that rate it’s nearly certain you’re wasting your money. $25,000 a year times about 15 years of school before college - that’s $375,000 blown on your kids before they even start higher education. Unless you’re a billionaire, that’s likely a bad idea. What happens if your kid grows up to want to be an artist or a park ranger? You’re not getting any return on that money. And even if you want them to be a plastic surgeon or investment banker, that preschool probably isn’t going to do much besides impress the neighbors. If your kid is smart, your kid is smart, and you can only push them so much further with education. Stick that $25,000 in a basic index fund every year and what do you get? My calculations say $800,000 by the time your kid is 18. And if you do that for 15 years, then make them wait until they’re 30 to get it - they’d have around $2.5 million. No offense to the elite preschools, but if I were your kid I’d rather have the money.
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