Is it a good or bad idea to give 100% of my bonus to help fund my sibling's education?
For reference, I grew up middle class where my family was comfortable but large payments such as college put a huge strain on our finances. My parents didn’t tell me this when I committed to a target school (incurring higher tuition than my in-state option), but they expect me to fund my younger brother’s tuition (definitely state school, the kid’s a brick). The state school tuition ($25-30k yearly) will almost certainly wipe out my bonus for several years.
Has anyone had to help fulfill large financial obligations such as this during their analyst years? What's the best way to approach it? I want to be proactive so that once I start full-time I know what I'm getting myself into so I can best help my family out while keeping my own life and personal finances in mind. Would appreciate any advice, thanks!
Is this a straight up gift or interest free loan?
"No" is a complete sentence.
The only way I would even entertain anything is simply paying the parents back. If they have parent plus loans or something, I could understand paying this off to help your parents, but I would not agree to pay your siblings college. If after they graduate and you can help them maybe some level of payment could help them cover any loans they have.
Did you have to take out student loans to pay for your target school or are you saying that your parents burned out both you + your sibling's education fund by paying for your target school? If the latter is the case, it sounds only fair to help your brother at least to some extent.
Regardless, the best approach if you really want to do it could be something in between. Offer to cover $10k - $15k per year in tuition to reduce the pain and have him take out loans for the rest. Help guide him to get into a career that is at least decent paying and if you're making bank in 4 to 5 years once he graduates, maybe you offer to help pay down some of the loans.
Tell him to take out like 50% in loans and agree to pay the loans. You will have 4+ years of savings and a higher base. Then help him pay the rest by getting him a job.
lol there's your answer. No. Save your money. If he's an idiot he shouldn't even be going to a state school. Tell him to go to trade school or start learning some other skills, university is way too overpriced and not worth it unless he's going to get something significant out of it like a STEM/business degree. This is not your obligation by any means. The best thing you can do for your family is be successful and be able to help them when there's an emergency, not bankroll your self-admitted idiot brother to go party for 4 years at a state school with your hard-earned bonuses. Your parents can expect all they want, it doesn't mean jack shit especially if it's something they're just suddenly dropping on you.
Community college 2 yrs. Then state. Still good to have the paper. Then maybe gov job.
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