This episode is sponsored by SmartVester. Connect with an investing pro for free at Ramsey Solutions.

Com slash invest.

You're listening to Ramsey everyday millionaires where we talk investing, retirement, building wealth, and outrageous generosity. Today's question comes from Thomas and Nevada.

He says, I hear you talk about pay for your kids college or higher education.

Why is this a requirement?

I'm not trying to pass off responsibility.

I went through college and paid my way through.

My parents were capable of helping me pay for college,

but they went through college on their own

and said they learned a lot from budgeting and

needing to control their spending in order to pay for school. I plan on helping them

start out with books and rent but not planning to fund their higher education

decisions. Is this a mental change that I need to make or are

there different amounts that I can help? You know, this is an interesting question and it comes up a lot.

You know, Baby Step 5, if you're listening

and you're not sure about the Baby Steps,

Baby Step 5 is there to set aside money for kids college,

whether it's a 529, an it comes after investing 15% and it comes before paying off your

home so it's important to know where that sits in this whole equation and you

know Dave we've never said you know we give some

percentages and some guidelines for some of the other steps but for this one we

don't say and you know you put 10% for college or you you do $700 a month.

...