12 May Should my college student pay some tuition bills?

Q. My daughter is starting a college program where she will work a co-op during three years of the five-year program. She will be paid. I had planned to pay for all of her tuition and living expenses, but now that she has some income, how should we plan? Should she have “skin in the game,” or should I tell her to save it all — or just let her decide?
— Mom

A. Congratulations to you and your daughter.

Working in her field as she gets her education will certainly give her a leg up.

The paycheck doesn’t hurt, either.

Jody D’Agostini, a certified financial planner with The Falcon Financial Group in Morristown, said she likes the idea of them having “skin in the game.”

“I believe it provides incentive to take their academics more seriously since they’re invested in it,” she said. “We value things more that we have to sacrifice for.”

D’Agostini said it is also a good life goal to invest in yourself — your human capital.

“This is the ability to earn a living. It makes the student perhaps more focused on the job at hand since they would not want to waste their hard-earned dollars,” she said.

One idea for you is to consider investing the balance of what you would have paid for her college and give her some or all of it upon graduation if she performs well academically, D’Agostini said.

“It is a wonderful way to help them with a deposit for her first apartment and money for furnishings,” she said.

Email your questions to Ask@NJMoneyHelp.com.

This story was originally published in May 2025.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.