The concept is not to frivolously spend money unnecessarily on unappreciative kids - it’s to support the kids and provide them with every opportunity to succeed. If your daughter turns out to be a prodigy and you need $200k to send her to Harvard, you’d probably pay that if you could afford it.
This is a good summary of private school sales literature. My thought has always been that children who attend private schools get accepted to college at higher rates because they are raised by families who care about education and the nature of the school they went to is irrelevant. I bet if you took these same children and placed them into public school, 99% of them would have gone on to attend college.
But they might have gone to a worse college you say? Possibly, but the nature of education today is that it’s virtually accessible to anyone in the world, for free. The best colleges do not have a better ability to teach stats 101, or a better way of interpreting Shakespeare. This barrier is falling fast and is eroding what used to be the value behind the top academic institutions. Much like the great libraries of the world, the value is no longer locked inside their doors and their usefulness declines every day. These institutions are well aware of this, which is why it’s well known that many Harvard courses are taught by graduate or undergraduate students. The value of explaining concepts is no longer what drives great professors, it’s in the research that they are able to produce. This has a benefit to humanity, but not the students who attend. Meanwhile the students aren’t concerned because, again it’s very well known, everyone’s getting an A. All of the top schools engage in grade fluffing to ensure high GPAs and graduation rates, so that they can compete for the top rankings. Meanwhile alumni continue to recruit grads into higher paying jobs in a self-serving effort to boost the prestige of their alma-mater.
If this circle jerk of an education is what produces today’s definition of a great human being, I’m out. The work required does not justify the small probability that my child will sit with one of the great academic minds of our day for a semester and hopefully be inspired enough to change the world in a way that was not possible before this interaction. Instead, this time, money and effort can be spent in ways that will positively impact people here in my community, where my children can participate and benefit at a young age and reap the benefits for the rest of their lives.
*I will add the caveat that I live in a normal, respectable town. Someone who is not so fortunate (Chi-raq) will be enormously benefited by their parents paying for them to attend a private school.
The beauty of Harvard and the rest of the Ivy League is that you pay what you can afford (or at least what they think you can afford). More than 1/2 of kids who attend Ivy League schools receive large financial assistance packages and actually pay far less than most kids at supposedly affordable state schools.
Not to mention the opportunity cost of the money spent. Think about if you put away 300k at 18.
Those going to college aren’t the ones who need assistance in life. Milton Friedman spoke at length on this subject. Completely regressive policy. Subsidizing college.
amen
if she’s a real prodigy she won’t have to go to Harvard
alternately if you’re a prodigy that can’t get a scholarship, one of those things is false
Two great posts.
For what it’s worth, I agree with what Huskie says about private school. I probably would not send my kids to such a place - I just understand the reasons why others do.
However, I do think that it’s worth going to the best possible college you can, based on your ability. The main benefit is to surround yourself with people who are similar or better than you. This pushes you to work harder, learn more, and ultimately, achieve more once you graduate. The job recruitment opportunities and name recognition later in life are also valuable.
BS, you yourself tried to go to Harvard, Stanford or University of Chicago for business school. So clearly, you believe there is some benefit to attending top universities.
I’m not sure what you meant in your last comment. What I am saying is that parents in general, just want to put their kids in the best environment to take advantage of their natural talent. If the kid is very smart (maybe/maybe not a “prodigy”), most parents decide that the best environment is a selective university. If you make a different choice for your children, I will not argue with that.
better to subsidize education which can arguably make someone more productive than helicopter money, ie welfare checks. 
and people dont go to top schools just for the money. others do it for the network and prestige. which is priceless. shit could be $1m and i imagine lotta ppl would still pay to go.
its like bottle service. some people will drop 1k on a $40 bottle. cuz money aint a thing.
The American approach to college baffles me.
I went to a world renowned university and didn’t pay a penny in tuition. No scholarship or anything, that’s just how it works back home.
^ Aren’t undergraduate degrees in the UK £9,000/year for UK residents?
And a few more just because he’s one of the greatest little men ever.
Not in Scotland. Free tuition for all Scottish people and people from the EU but for some reason the English still need to pay.
Cost of uni accommodation is pretty cheap compared to the US as well.
I did apply (would have been self funded) for what it was worth. My primary motivation was to be able to transition to the buy side and I bought into the literature. Fortunately, I didn’t get in because within a year I wound up on the buy side anyway in my target role with a salary higher than the median from Booth sans the $100k of debt and 2 year opportunity cost.
This was huge for me because I realized what I’d been saying above about the lack of necessity of attending a top school. Shortly after starting this job, I began to get very negative feedback from some of the grads I knew who had graduated right about the time I was applying regarding their level of debt and current earnings. Several said they really regret doing the MBA.
In summary yes, I did see value but my view has evolved.
The point of my comment was that an actual “prodigy” would get a scholarship because of their talent in a subject (so you wouldn’t have to pay). Otherwise, they’re not a prodigy. But more importantly, people with undeniable talent will always succeed even if they have to settle for a good school. Malcolm Gladwell actually made a very strong argument against going to the best school you can in David and Goliath that basically boils down to reinforcing leadership and allowing that individual to thrive as a recognized standout.
im with my boy Ohai. you gots to go all out if the kids a prodigy.