A dad from San Antonio called into “The Ramsey Show” with a dilemma: His daughter, about to graduate high school, has her heart set on an expensive university that costs more than double what another option would.
Paying For Her To Live Away From Home
“She has the opportunity to attend either one of two universities,” the caller named Manuel said. “University A for $88,000 total, and University B for a total of $208,000.”
Manuel clarified that his daughter wants to study biology or chemistry and then pursue medical school. However, both schools have similar med school acceptance rates.
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Personal finance expert Dave Ramsey quickly cut to the core of the issue. “So you’re not paying a dime more for education. Your only reasoning is you want to spend an extra $140,000 to live away from home,” he said. “Her attending the more expensive [school] does not help her get into med school.”
Ramsey then emphasized that wanting to move out shouldn't come with a six-figure price tag. “Honey, if you’ll go out in the driveway, you’ll notice that there aren’t two Bentleys sitting there because your mom and I can’t afford them,” he said. “Money is finite; we’re not in Congress.”
Manuel and his wife have saved enough to fully pay for the $88,000 college, but not the $208,000 one. Ramsey stressed that if his daughter insisted on taking out student loans to attend the more expensive school, he wouldn't contribute at all. “If you’re paying for it is you taking out student loans, I’m not going to give you the $88,000. I’m not going to subsidize your stupidity.”
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Co-host George Kamel added that this sounded like a case of an 18-year-old not fully grasping what $100,000 really means. Manuel agreed, saying his daughter “insists on wanting to go to University B” even after the financial breakdown.
Ramsey encouraged the dad to approach the conversation with love but clarity. “We want you to live this dream, but if you live your dream in an improper way, it becomes a nightmare,” he told Manuel to tell his daughter. ” Any more than I’m going to let you spend this money on cocaine, I’m also not going to let you spend this money on something else that brings you harm.”
He also reminded them that med school is still coming, which will bring its own massive expenses. In closing, Kamel added that her wanting to live away from home is not worth $120,000.
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