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Keadog brought up a subject for which I have some advice, though I learned it to late.
Sit the little ones down and tell them "In this family we have two rules. Number one, you are each going to graduate from college. Rule number two, you will each pay your own way."

Keadog

We're getting a little off topic, but our philosophy was (and is) that we would pay for any school they could get into that they wanted to go to but they better make the most of it, because there probably won't be anything left when we're gone. My father always told me "I owe you an education and nothing else" from the time I was little, so I guess it's just personal preference and how one was raised. It's worked pretty well in our family, though I'm sure no one plan is right for everyone. Our kids both graduated with honors in four years from top rate schools, are very appreciative, worked hard in school and continue to work hard in the "real world". We're very lucky.