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You Wanna Bet?

You Wanna Bet?

Warning 1- This blog acknowledges (neither endorsing nor condemning) the existence of gambling/wagering money- often the loss of it.

Warning 2- This blog uses analogies that are imperfect.

Warning 3- Our editor is on vacation, which means decreased quality of format and increased use of ellipses and parenthetical statements.

Warning 4- Actually, that’s it. Here we go.

I’m not a big fan of large, indoor spaces, especially those without windows. This has never been formally diagnosed and in Google searches I can’t seem to find an exact match of symptoms or causation, so I refer to it as “Clagora”– an odd combination of Claustrophobia and Agoraphobia. In general this aversion has served me well, as it severely limits my time in malls, conference halls, and casinos.

But a few weeks before my wedding, I was in New Orleans with some good friends. I told them I wanted to do one thing- place $50 on black in roulette. No food or drinks. No sitting down. This was a get in and get out mission. One spin of the wheel. So we headed to Harrah’s Casino in the French Quarter.

As we approached the table, one of my friends (none of whom were married at the time themselves) grabbed my shoulder. “We were talking and have an option for you. We can all get you some crappy, forgettable wedding gift like a toaster or some candlesticks…or we can each give you $50 right now. One bet. All in.”

I paused and considered for… about three seconds (OK. Two.)… “Give me the money.”

“$400 cash on the table,” I heard the dealer say calmly. He deftly put the shiny, silver ball onto the roulette wheel and sent it spinning.

Students- Know Your Odds

The odds of hitting black on a single roll in roulette are 47.4%. Now, this may blow your mind but that means the odds of not hitting black are 52.6%. Put differently that’s less than ½ or more likely you’ll lose than win. Need more examples? Sometimes flipping statistics and changing your perspective in general can be helpful. Walk a route you normally drive. Take a helicopter tour of your town. Consider that while you “only have to put down 20%,” you still owe 80%.

Listen, I’m not saying that admission is roulette (see Warning 2). Applying to college is not a game. Admission decisions are not arbitrary. But it is helpful to “consider your odds” as you are building a list of schools to apply to.

A number of years ago, I suggested the Common App insert an acknowledgement button on the application of any university with an admit rate below 25%: “I understand this is not a fair process. Being of sound mind I agree not to assign self-worth to admission decisions. Further, I agree to apply to at least two additional schools with admit rates above 50%.” I never got a reply.

Well, I’m working on another petition now to US News and World Report and several other publications who commonly list schools by admit rates (typically starting with lowest as an implied metric of quality/value).  The ask—publish deny rates instead.

How would it change the make-up of your list of colleges if you thought about your odds or percentage chances in reverse? How would it alter the way you feel when you receive an admission decision, if you had looked at your odds differently from the start?

Applying to Stanford and Harvard is essentially like putting a chip between the 0/00 on the roulette table (95%~ chance of not hitting). I could see placing one bet like that, if you are a truly outstanding student. But more than that? High school counselors are always advising students to create a “balanced list” of colleges to consider. This is why.

So the next time you are listening to a college admission presentation or looking at admit rate information online, reverse their numbers. As an example, Georgia Tech’s deny rate for international students last year was nearly 90%, 82% for US non-residents, and 55% for Georgia applicants. Do the math and know your odds. It may help you spread your chips/apps in a more strategic and logical manner.

Parents- Consider All The Angles

$50 on black. In and out. Nobody gets hurt. That was the plan.

But the game changed. The stakes went up. The emotions of the moment were palpable and it was not “just me” involved anymore. All of a sudden the dollars multiplied eight fold. The “offer” of cash for wedding gifts now involved my wife and our future (Again, see Warning 2).

It is still July. Before your son or daughter starts filling in their name and asking you about employment history or your driver’s license number, you need to talk money. I wrote more extensively about this in March, but my strong recommendation is you establish and discuss three key elements of paying for college and finances: limitations, conditions, and expectations.

Limitations

How much are you willing to invest in your son or daughter’s college education? Particularly in states with strong public university systems, we often hear parents say, “I am willing to pay for any of our state schools or the equivalent price, if my daughter chooses to go to an out-of-state public or private school.”  Consider and honestly discuss what limitations you want to establish. These should not necessarily keep your student from applying to a particular school that looks like it will cost more than your determined threshold, but setting clear limitations early changes the dynamics, frames the emotions, and helps prevent feeling “gut punched” in the spring when financial aid packages arrive.

Conditions 

“We will not pay for a school south of Virginia,” or “No child of mine is looking at schools west of Colorado,” or “We will pay for $40,000 a year for College X, but we are simply not paying that for Y University.”

What are your financial conditions- and why? College is an investment. Your family’s goal is to be confident in the dollars you spend. If you talk about why you are putting conditions in place, they will not come across as irrational or arbitrary, but rather instructive and rooted in love.

Expectations

What role will/should your student have in paying for their own college education? Is there a flat amount or percentage you expect them to contribute? Setting clear expectations before applying to college allows them to consider if they need to work and save money during and high school, consider a gap year, or what questions they ask colleges about opportunities for on-campus jobs, the prospects for (and salaries associated with) internships or co-ops, etc. Instead of being divisive, setting expectations can unify your family because “the problem” of paying for college becomes a joint effort—one to solve together.

If there is one common thread that connects all parents in the college admission experience, it’s this—you love your kids. You want the best for them. You want them to be happy. You want to provide for them and say yes. As a parent of two, I totally get that.

However, here’s what I can tell you about the seductive roulette wheel of admission (for issues with that wording see Warnings 1-3)—it gets emotional. The offers start coming in, the dollar figures start going up, and it’s not just you at the table. You love your kids. Consider all the angles now because when that ball lands there will be some cheers, some disappointments, and often a crazy mix of both.

Back at the casino

The ball spun, slowed, and started bouncing. Red, black, red, black. Finally, it landed. Red 28.

Slowly, I let my head fall backward. I felt my friend’s hand on my shoulder again. “Well, at least we won’t be giving you some crappy hand towels or doilies from Target.”

Know your odds and consider all the angles. I’m betting that takes you a long way in your college admission experience.

Formal end of blog

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Feeling lucky?

A few years ago, there was a school in our state who had a relatively new head football coach, a lot of swagger, and fans that probably love roulette for the colors alone. Mid-season I told a friend that if they made the national championship, I’d donate $100 to his university’s need-based scholarship fund.

Well…I’m $100 dollars lighter now but at least I know my money went to helping some kid offset costs. When I unsubscribed from the Foundation solicitations, I chose “Other” as the reason and inserted this: “I LOST A BET. I’m the Director of Undergraduate Admission at Georgia Tech. Congratulations on coming within inches of winning the national championship. Now, please, never email me again!” I actually got a response saying it was the “best opt-out they’ve ever received.”

So before you bet a friend $20 or $50 or dinner on a game this fall, consider instead wagering a donation to the need based financial aid fund of the winner’s alma mater.  Can’t fathom “ever contributing one dime to that school?” No problem. Donate to the NACAC Imagine Fund and help high school counselors who send kids to many different amazing colleges.