$40,000 In Debt or $40,000 In Cash

A U.S. college education is a joke. Blasphemy you may say. What jobs do you absolutely need a college education for? Doctor, Lawyer and a Nurse to name three. Do you want a career in a field that requires a degree? If not, Screw College!

I know successful entrepreneur's that have gone to college. I know successful entrepreneur's that have not gone to college. It doesn't matter. I know a successful entrepreneur that became pregnant at 15 or 16 years of age and was kicked out of her house.

College's don't teach you a damn thing about owning a business. An MBA teaches you to be a manager, not a business owner. Don't want to own a business? Fair enough, but you will never get remotely wealthy working for someone else. You need become an investor at the very least.

I have four kids and I'll pay for two years of education for each, but I'd rather give them the money for that education and teach them to invest. My dream scenario would be to give my kids $20,000 each and give them a subscription to one of the Stansberry and Associates newsletters that teaches them how to sell Puts. This will safely grow their money at 8% a year or more for life.

Here is the plan I'll present to them:

-Take my $20,000 invest it according to a Put selling newsletter.

-Add $466 a month to that through their own hard work.

-Live at home for 4 years to save money and start a career.

This would allow them to start a business, work hard in a profession of their choosing and to start a life debt free.

Financial freedom is life freedom.

My $20,000 and their $5000 a year at 8% interest is roughly $26,772 after year one. Year two with the addition of another $5000 in equal monthly payments at 8% a year is roughly $34,086. Year three with the same parameters is roughly $41,985 and the end of year four is roughly $50,516.

If my kids keep doing exactly what they where doing with savings and interest for 10 more years they will have $186,991 add an additional 10 years and they have $472,154. In 24 years my kids can have almost half a million dollars. Chances are if they work hard and live frugally they can add more than that $5000 a year to their investments and be millionaires in 24 years.

Most kids today are graduating college with a mountain of debt. According to Hamilton Place Strategies students in 2012 graduated with $28,720 worth of debt, that cost will rise in 2013. According to the Federal Reserve 44% of college graduates are working in jobs that don't require college degrees.

Those students are not getting paid what they expected when they started college. Those students are expected to pay back those loans. Those students learned nothing about finance, budgeting, loans, credit cards and investing.

My kids would learn how to put money away each month. How to invest safely, how to use leverage to their advantage, how to invest like a professional (not a mutual fund salesman), and they would learn how to take care of their own money and make that money work for them.

Why is it that we teach kids how to work for someone else, how to take out a loan which makes them a slave to the bank and to their jobs, but not how to become independently wealthy? Perhaps it is because we don't know ourselves? Perhaps it is time to change that?

I would change the entire landscape of education from elementary to college, but I'd start with college. Elementary you say? Yes! When you are at work don't most of you need to work together a lot? This is challenging isn't it? Why? It is challenging because most of us never learn how to work as a team.

What do they call it in school when you work as a team to solve a problem? They call it cheating. I'm simplifying the situation a bit, but you get my point.

Albert Einstein said imagination was more important than any other learning, our system destroys imagination. In fact, I'd say imaginative kids get in trouble more than they get encouraged.

If the text book says that Christopher Columbus discovered the America's but a student says it was Asians or Vikings the student is told they are wrong. If a child can remember the actions that caused a war, but can't remember the dates he may fail a history test. What is more important, learning human behavior or dates?

We are more interested in learning the text book and learning the test than learning truth and discovering new truths.

I have more to say on the subject of the U.S. Education system and I'll write more later. Including how to get a free college education if you really want to go to University.