Why Prepaying For College Is A Bad Idea

[@JeanValjean875]

Joke's on you, Dave: my degree is in RIGHT handed puppetry!

[@genxx2724]

That’s not as specialized.

[@bestbudsourchannel4807]

Which fingers do you specialize in? I may have an employment opportunity for you 😁

[@gwildordipkin6504]

I can control a puppet with no hands. He can only nod his head up and down but...

[@dacokc]

Should have gone for left handed… it’s more rare to find someone who can do that.

[@christians131]

I turn to google for help on my homework more than I turn to my textbook. It’s crazy that as a culture we still place such a high value on just any degree

[@JakeAkstins]

A lot of people only go to college for a social status because it makes them look good and educated to others. A college degree doesn't mean anything if you are in debt and can't use the degree to leverage a good job afterwards.

[@adoe2305]

Why do you think you know why people go to college? Your opinion doesn't mean anything

[@adoe2305]

@@RC.- sure. I totally believe that

[@JakeAkstins]

@@adoe2305 you got me.

[@angel-ij4xv]

college is nothing but a business

[@eddierobles2137]

Amen

[@socku5850]

Go to a community college then transfer to a university. The first two years of college is just general education and some elective courses.

[@lukesmith3283]

Amen agreed!

[@cooper1056]

Nope 😂. Not the same. So you saying your community college classes are the same as MIT first two year classes ?

[@Datsun280zxman]

Plus a lot of degrees are considered worthless in the real working world.

[@adoe2305]

Says who?

[@amireallythatgrumpy6508]

Just like Americans are considered worthless in the real working world? Yes.

[@omary2158]

That’s exactly what he said lol. And you say “plus”

[@scarpfish]

Yeah, tell that to everyone without a degree trying to get a job whose resumes are constantly being auto rejected because companies thought turning their HR department over to ATS software was a good idea. 😏

[@IlPinnacolo]

@@scarpfish Bingo. Doesn't matter how much experience you have, doesn't matter how much you worked your way up the ladder in other employment. It doesn't matter how intelligent you are. You won't get past the automated system without a degree. If you get past that through connections, any corporation will veto your raises and promotions based on the fact that you don't have a degree. Doesn't matter what your immediate supervisors think, doesn't matter what hiring managers think for internal transfers either. Speaking from experience here. They know the system doesn't give you options. I had people working under me on multi-million dollar projects that were paid more than me because they had a degree even though they had 1/10th the responsibility. Ruthless frugality is the only thing that let me escape.

[@TheSilverLining22]

Love this about challenging the education system!! 🙌🏼🙌🏼 let’s be loud about it!

[@yodaflyz]

Some businesses are starting to offer free online college programs. Who knows how much or if they will need that money for education as we don't know what higher education will look in the next few decades. Plus online can't replace fields that require a lot of hands on learning (such as nursing). To sum this all up, there are way to many unknowns with higher education. It's best to be prepared in case they need that money but don't lock your child into an education path that may become obsolete in the future.

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity.❕

[@thelogicaldanger]

I disagree. Prepaid college is one of the best choices from financially, which is why most states no longer offer the deal. Prepaid college can be used for technical school. If not used, then you can get your money back with a small amount of interest (unlike CSA's where the money can only be used for college.) Anyone who has the option of prepaid tuition should count themselves blessed and go for that over a CSA.

[@wattwalsh4982]

⤴️⤴️

[@ranger2316]

I agree

[@jimroscovius]

It's not a blessing if you get a low return on your money. We never prepaid college, but we paid for almost all of our kids' private college. It's called savings.

[@ranger2316]

@@jimroscovius You do you...

[@jimroscovius]

@@ranger2316 I do, and it works.

[@cesaravegah3787]

Prepaid college worked very good for my two brothers and their four children, we dont live on the USA though

[@davidmilhouscarter8198]

I wish I prepaid for bread and other groceries in late 2019.

[@brentkillian]

I think if we stopped federally insuring student loans it would go a long way toward driving the price down. And perhaps get rid of the useless degrees

[@amireallythatgrumpy6508]

All degrees CAN be useful if the student has the ability to make them useful. It is usually the student who is useless, not the degree.

[@Sizukun1]

I've heard that before too: if there was a federally insured or federally backed financing program for shaving cream, the price would double before the year was over.

[@brentkillian]

I don't think that Actually a lot of people need to go to college especially at current prices. The trades are a very good option for example.

[@scarpfish]

The so called "useless degrees" aren't the problem. Those are cheap, (unless you were dumb enough to go to a prestigious private school or pay triple for out of state tuition). The problem are aimless people who go after the useful ones to either chase the money, or to fulfill a childhood dream. Somewhere around year three they begin to realize what actually being in that line of work entails and lose interest, and subsequently don't finish. Another potential problem group are the folks who did finish but decided to keep going. Namely, graduate and professional students. Only about a quarter of college students enter the postgraduate realm, but it constitutes about half of the student debt pie. Yeah, I'm sure there's a left handed puppeteer or two in there somewhere, but a lot of those folks are on their way to medical, law or dentistry school.

[@TheSoulCrisis]

Sometimes prepaying for a video game is bad idea and studios don’t deliver…..never mind a degree from a school that will saddle you with 30K+ of debt and you may not even get a very big paying job. No degree guarantees anything is what we need to realize, so only do sensible and economic moves.

[@barnabusdoyle4930]

If it was a single college, yeah that’s a bad investment. This is a FL plan and could be better then a 529 depending on a lot of things. I would say the gamble is worth it

[@TheSoulCrisis]

@@barnabusdoyle4930 For me it's all about return on investment and what the income to debt ratio would be! It's possible, I would just move on the side of caution but can't see myself doing it really. I went to college too, I started out in a community college and transferred into a public university (where I was in a dual-admission program between two universities with lots of funding provided).

[@thelogicaldanger]

Prepaid tuition through states is an excellent idea, and unlike the college savings accounts with Ramsey touts, with prepaid tuition you can get a full refund plus a small amount of interest, if your child doesn't go to college. If your child just gets a 2 year degree, or goes to a technical school, then you would get a prorated amount back from the prepaid tuition.

[@TheSoulCrisis]

@@thelogicaldanger Ahhh now that sounds neat and convenient on the receiving end! That's another perspective that I was not aware of.

[@thedopplereffect00]

Where is Dave getting these magical mutual funds returning 12% with his high fee referrals?

[@KB-ct8wg]

It pigeonholes children into an investment they did not choose. Also, tuition rates are usually fixed for many years.

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity...🚀🚀

[@thelogicaldanger]

Incorrect, parents can get back all the money they prepaid, plus a small amount of interest. Prepaid college can be used at private schools (prorated) or at a technical or jr college (prorated, and the parent can get a partial refund.) Dave is 100% incorrect with his speech on prepaid college.

[@mikesmith-wk7vy]

i looked into that code school stuff before but 100% of every job i have seen in my state for that field list a 4 year degree in the requirements at minimum . i think Dave is a bit out of touch with that fact lately . he might hire people without one but it seems the vast majority dont . i even looked into that one he recommends bethel or something and for 17 grand you get lessons that help you have a chance to get a certification when the jobs require that and a 4 year degree and most of the time experience on top of it , so when you do that you aren't qualified for any job you need the certs and experience in the field without a degree in order to start and thats contradicting cant get experience without the job

[@wattwalsh4982]

⤴️⤴️Tell Max Thomas I recommend you for a business investment opportunity.... 📉📈

[@ranger2316]

And you're resume won't eve make it through the computer pre-screen algorithm if you don't have a degree. You won't even get an interview, because you won't make the final slate of interview candidates.

[@ue7572]

Uploaded during the perfect time!

[@wattwalsh4982]

⤴️⤴️Tell Max Thomas I recommend you for a business investment opportunity.... 📉📈

[@mikesmith-wk7vy]

yes college is going to keep going up , way to much power in the swamp keeping the prices high . and ive been looking for a basic office job for years everything requires a degree now. in matter of fact its getting worse , online degrees have blown up in cost approaching in person prices even because people are running from in person

[@wattwalsh4982]

⤴️⤴️Tell Max Thomas I recommend you for a business investment opportunity.... 📉📈

[@metaltera86]

Dave what is your stance on this: My wife and I are on steps 4-6 and currently no children although we are working on that. What if we start a 529 when the baby is born but when the time comes and he/she doesn’t want to go to college what then?

[@masonhock6442]

Starting in 2024 you can roll a 529 into an IRA, including a roth I think, without penalties. So that is nice.

[@scarpfish]

@@masonhock6442 That's a step in the right direction. Putting all of the tax shelter vehicles for retirement, education and health care expenses under one regulatory blanket where funds from any of them can be transferred to another as personal needs change would be where this ultimately needs to go.

[@TheBarisaxman17]

That 75 year inflation number for college tuition is suspicious. I wonder if he pulled a 50, 25 and 10 year tuition inflation average if he'd change his entire argument

[@amireallythatgrumpy6508]

They would probably intensify his argument.

[@EdA-bz3bu]

College is a plus then no engineering degree and an engineering degree does not matter from what particular college is from. it’s like a car a Chevy will get you to the same place as a BMW will.

[@mikemayo4812]

If it doesn't break down before it gets you to your destination.

[@ss-s-do3uw]

Ilove this video and try to give back as much ascan with free templates and advice.

[@michaelcarter266]

I hope the college system changes but doubt it will.

[@daw3062]

When I was at the rockwall and the lazy river more than anything for 10s of thousands of dollars

[@404TRUCKERTV]

Hmm, good cost analysis Dave!

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity...🚀🚀

[@CPMG2000]

I agree that College will not cost as much in the future.

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity...🚀🚀

[@mgd4327]

Universities should be forced to co-sign student loans or lower tuition. That way, they have a financial incentive to set their graduates up for success.

[@amireallythatgrumpy6508]

That way they would make the requirements to enter so much higher. The colleges wouldn't take on most applicants. Where's the downside?

[@Silented1234]

If you aren’t training for a high skilled career such as surgery, Nursing, engineering, etc. a college degree is typically worthless. Why would you spend thousands of dollars for over priced, repackaged free information

[@RC.-]

Agreed. A 4-year college is only worth it if you’re going into a STEM field.

[@KatieBellino]

@@RC.- It doesn't have to be a STEM field, but it should be a degree with an obvious career path after you complete it.

[@adoe2305]

What's "high skilled?"

[@LG123ABC]

Because some employers won't even CONSIDER you if you don't have a four-year degree. I've even seen a lot of sales jobs that require a degree -- which is stupid, but true.

[@shannonrose4916]

Some employers require a college degree. Not saying that is fair.

[@nikolaig1]

2:52 this is totally not true. 3:01 out of control? 3:17 yeah its a business.your not getting screwed its just the loan type. 4% vs 7% who cares???!!!!😂😂😂😂😂😂😂3% difference. Colege is for my degree not return in investment.

[@tnt0215]

College is not needed in 2023 for most majors. Education is not given by a university. That’s just a way to make money. And I have degrees so I’m not hating lol. So many ways to make money. Why go in debth if not needed

[@wattwalsh4982]

⤴️⤴️

[@kennethwers]

Not all children are good adults. A college fund could easily be vacation and drug money. A 529 with be the young idiots money.

[@joeriveracomedy]

Instead of pre paying for an impending funeral I am negotiating a bond for it

[@roberthicks636]

I think you can roll unused 529s into roth IRAs now

[@KS-cl8br]

Yes but limited benefit because the contribution limit may take multiple years to transfer the money and prevent you from making contributions

[@Epidombe]

I went to the most expensive german polka history university in the world in sarajevo, croatia and I am very offended by Dave.

[@marcosct86]

😅

[@diane261]

You will be alright 😊

[@Armyreaper]

Majority of jobs could be learn on the job

[@scarpfish]

Yes, they could. Too bad nobody wants to train people.

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity...🚀🚀

[@therealwewin]

@@scarpfish people are criminals nowadays.

[@pandathomas5534]

What’s Ramsay’s kids majored in? One of them majored in communications. Lol.

[@Jay-om8gr]

Lol but they don’t count. This is gif normies. They come from big money

[@amireallythatgrumpy6508]

All degrees CAN be useful if the student has the ability to make them useful. It is usually the student who is useless, not the degree.

[@wattwalsh4982]

⤴️⤴️Tell Max Thomas I recommend you for a business investment opportunity.... 📉📈

[@cw5948]

Always find it ironic when Dave Ramsey attacks worthless majors when his daughter, Rachel, studied Communications. While, granted, one of her core functions at Ramsey is as a communicator, you can’t deny she could have studied another major and been fine in her current role. Because the Ramseys are wealthy, their kids can study intellectually light majors and still get by just fine.

[@amireallythatgrumpy6508]

Usually, it is the student that is useless, not the degree.

[@percivalgooglyeyes6178]

Pre-paid college tuition is like buying a time share. You're stuck!

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity...🚀🚀

[@steviejd5803]

Left handed puppetry lol

[@josephjames8131]

Lol stop calling black people brother and sister. It's weird.

[@LuisLopez-nk7fj]

What makes you think Christina is African ?

[@LG123ABC]

It's a Southern thing, not a racist thing. Many Southern Christians would refer to each other as "Brother" or "Sister" as in "we are all brothers and sisters in Christ".

[@josephjames8131]

@@LG123ABC I grew up in church, we say brother before saying their name. Like, "brother Joe" for example.

[@britneyog9537]

529..

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity.❕

[@hoiendehe]

Dave hates single moms

[@myafrosheen]

Just be a nuclear family then...

[@hoiendehe]

@@myafrosheen Why do you want me to throw a nuclear bomb on single moms. That is so harsh

[@lukeharris2622]

✝️🙏

[@SPY_0-DTE]

👹

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity.❕

[@wokecenterleft7473]

Let's hope affirmative action is challenged and made illegal as well

[@will1o7]

What's Affirmative Action and why is it bad?

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity.❕

[@taylerlong2995]

@@will1o7 layman's understanding is it gives preference to students based on race, socio-economic status, and other non-academic related criteria. Those of us against affirmative action generally believe academic institutions should put the most weight, if not all, on academic ability. Chosing a student based on race is, in my opinion, racist. As a further thought experiment, if you're a student selected because of what you look like and not your academic ability, are you not ill prepared for the school if you're coming in below the skill level of the rest of the students?

[@bestbudsourchannel4807]

I no longer want my kids to go to college and become in debt, woke, and entitled... and censored on what words they can say and what thoughts they are allowed to think

[@amireallythatgrumpy6508]

If you're American, you are physically unable to have thoughts anyway. Same for your children.

[@bestbudsourchannel4807]

@@amireallythatgrumpy6508 So, yeah ... that's true

[@reese85]

So what would you rather have them do?

[@maximustrolleus9860]

@@bestbudsourchannel4807 ultimately it should be their choice on what they do. college is still a great way to be successful especially a stem degree. at the end of the day they should follow their passion in life. if they genuinely have a passion for biology for example, why not go to college and pursue that passion?

[@handleyobusiness]

@@reese85 To become free thinkers without the fear of being labeled racist/sexist/homophobic or any other label from the loonies on the left. Just my guess. 😏

[@adammoore7994]

No one should go to college for anything.

[@amireallythatgrumpy6508]

Incorrect. You should go to college only with a proper plan. You will then know how to get what you need out of college

[@scarpfish]

Yeah, imagine how much cheaper trips to the doctor or dentist would be for everyone if they didn't have to factor in the cost of all that God awful schooling.

[@scarpfish]

@@amireallythatgrumpy6508 True, but I'd say the vast majority of 18-20 year olds don't have a plan and aren't even in the right mindset to construct one. Academia does very little to instill direction in such folks.

[@nikolaig1]

How do people make more?

[@oneupper7602]

11-12% rate of return per year in the markets?! lol keep dreaming!

[@DonDon-ss4dq]

I like how you don't talk about tax benefits or it actually helps pay for school.

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity.❕

[@Barneyjo]

College is the worst purchase you could ever make!

[@sstrongman1667]

Really though?

[@reese85]

Depends on what you went for

[@Primitive_Code]

Dropped out of highschool? You're a role model for the average viewer of this channel.

[@hoiendehe]

No the worst are single moms

[@InternetUser._]

I got paid to go to college. I think I got a pretty good deal on my purchase.

[@RandomVids519]

She trys to talk like dufus george smh

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity...🚀🚀

[@tcarp1616]

F vandy

[@ss-s-do3uw]

Tell max i recommend you to him a life-changing investment opportunity...🚀🚀

[@carerforever2118]

To Michael, Just get your daughter to do one of the free short University courses that are online. That's what I do.

[@wattwalsh4982]

⤴️⤴️Tell Max Thomas I recommend you for a business investment opportunity.... 📉📈

[@eniak00]

How are “campuses out of control?”

[@hoiendehe]

By single moms (Dave hates them)

[@amireallythatgrumpy6508]

The money they waste on recreation and the looks of the campus.

[@LG123ABC]

They have become leftist indoctrination centers rather than institutions of higher learning.