Yes, both of my parents went to college and expected that would be the trajectory my siblings and I took as well. I am from a Latin American country, and my dad went to college in the US, so I wanted to follow his footsteps. I went to a US university with a campus in my country and did my first two years there. Then, I transferred to the main campus for my final 18 months. By doing this, I was eligible for in-state tuition, and my degree cost ~$32,000, which my parents were able to pay. I went on to get a master’s degree, and my tuition was waived since I was a teaching assistant. I feel very fortunate to have no student loans, though as mentioned above I did cosign for my brother’s graduate school loans, because I was the only family member that could cosign a loan in the US. At the time, the choices felt like they were either I cosign the loan or I tell him sorry, you don’t get to go to grad school. Looking back, I wish I had encouraged him to think more deeply about taking on this debt, since he went to an expensive private university and this is only part of the debt (he ended up also taking out a bigger loan that my parents cosigned in my home country). I don’t think he truly understood the magnitude of starting adult life with so much debt until after he graduated. This situation has been a cause of stress at times and put a strain on our relationship, because he has missed payments and not communicated about it until I started getting letters about a past due balance. But I can’t change the past, and now we are focused on making sure he makes timely payments so we can apply to remove me as a cosigner.
Growing up, what kind of conversations did you have about money? Did your parent(s)/guardian(s) educate you about finances?
My parents opened a savings account for me as a child and told me about the importance of savings. They never spoke to me about credit cards or how to make big purchases like a house, and I learned in the past couple of years that my parents went into credit card debt sometimes to go on big vacations. I was surprised they had taken a vacation that they were not able to afford without credit card debt, because I have never done that before.
What was your first job and why did you get it?
I had some internships as an undergraduate and then I was a teaching assistant in graduate school. As an international student, the types of jobs I could take during my studies were very limited. I did not have a job in high school — it is not customary for teenagers to work in my country, unless they are doing it to supplement the household income.
Did you worry about money growing up?
No, and I now realize it’s because my parents shielded me from their money worries. My dad was a small business owner, my mom had a 9-5 job when I was in elementary school, and our family was well-off. My mom was burnt out and left her job when I was in about 3rd grade, and a couple of years later my dad’s business went under during an economic downturn (and also due to some family drama that I learned about later in life). As an adult, I learned that during this time all of the family assets had to go under my mom’s name because otherwise they would have been seized to pay for debts left by the business. To stay afloat, they refinanced for a lower payment over a longer time period, sold one of their cars, and my mom went back to work as a real estate agent (my dad found other work as well). My parents were very stressed, but through it all, we still had all our basic needs met, and by the time I went to college, they made enough money to pay for my tuition.
Do you worry about money now?
Not very much. I make more money than I ever imagined possible when I was a child, and I can buy everything I want and need. I do worry about my brother continuing to pay his loan, since he has had instances of missing payments. The worry is greater now because my dad passed away last month, and he was the one person who said he would not let my brother’s debt fall to me (in the last 10 years my dad and uncle started a new business together, which paid my dad very well). But every month that my brother makes a payment and we’re closer to applying to no longer have a cosigner, I feel better.
At what age did you become financially responsible for yourself and do you have a financial safety net?
At 21, when I finished my undergraduate degree and was able to support myself with my teaching assistant salary. My safety net is my savings, and the ability to move back to my family home (outside of the US) if things were really dire. Since my dad died, I’ve had this heavy feeling that I would now be the safety net for my siblings and my mom (who is retired, and now that my dad died her only income is social security). A. assures me that his family has a large cushion if we hit a rough patch.
Do you or have you ever received passive or inherited income? If yes, please explain.
A few years ago, we rented out a room in our previous house to one of our friends, who paid $800 a month. All of my grandparents are gone, and I didn’t get an inheritance from them. My dad died with a couple thousand dollars left to pay on his credit card, so no monetary inheritance from him, but he and my mom did set me up for this incredible life I have, which is priceless. My siblings and I will likely inherit our family home, since it’s paid off and my mom wants to keep living there.
