Post
Topic
Board Economics
Re: Should there be a limit to investing in your children?
by
Fortify
on 17/07/2024, 20:12:19 UTC
There is a current trend in my country where parents are doing everything financially possible to give their children the best education. Some parents have gone to the extent of selling properties or taking loans to send their children to some of the best schools in and outside the country. I have spoken with some of them, and the reason they give is that this child will get good jobs and take care of them in the future.

I had to bring up this issue because most of them are becoming disappointed and depressed. In my location, children are seen as an investment because they have the responsibility to take care of their parents when they are retired, old, or unemployed. So parents will want to invest high in education because they think it will bring high returns. Many of these students who attended prestigious schools end up becoming unemployed and are still depending on their parents to survive. I also assume that many of them regret going the extra mile to give their children the best. They have lost money and are also in debt but their children are still dependants.

Do you think parents should have a limit on the amount they can invest in their children?

There is always going to be a limit to what you can invest in your children, it is defined by your income and your expenses. If someone is struggling to get by in a minimum wage job and barely covering their bills, they often go without so their children can have the basics covered. However if you are in a high end job, like a doctor for example, then they will usually send their children to private schools and give them all the extravagances they might desire in their developing years, while hopefully keeping them grounded - but the parents can still have a lot of slack left in their own income after paying for these things. I'd like to think that most parents will prioritize their children and not have any ulterior motives behind it (like getting care when they are older)