Galloway Suggests Investing Over Private School for $4.5M at 35

NYU professor argues parents should consider index funds over $70K private school tuition.

Published on Feb. 12, 2026

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New York University professor and entrepreneur Scott Galloway argues that parents should consider investing the money they would spend on private school tuition in an index fund instead. Galloway says that if parents invested $72,000 per year in an index fund over 12 years, they could end up with $4.5 million by the time their child is 35, "to ease your guilt and your kids' pain." He criticizes the "artificial scarcity" and rapid tuition hikes in the private school system, as well as the weaknesses of public schools despite high spending.

Why it matters

Galloway's argument challenges the conventional wisdom around the value of elite private school education, suggesting that the financial investment may not always pay off in the long run compared to simply investing the tuition money. This raises questions about the purpose and efficacy of the private school system, as well as the role of public education.

The details

Galloway says private school tuition in New York City has crossed into "jaw-dropping territory," with several elite schools now charging more than $70,000 per year for K-12 education. He argues that parents should consider investing that money in an index fund instead, which could grow to $4.5 million by the time the child is 35. Galloway criticizes private schools for operating in a system of "artificial scarcity" to drive up tuition, and public schools for weak results despite high spending. Co-host Jessica Tarlov, a graduate of an elite NYC private school, says tuition at her former school has doubled and they've decided to send their oldest to public school for kindergarten.

  • Galloway made these arguments in a recent episode of his "Raging Moderates" podcast.

The players

Scott Galloway

A New York University professor and entrepreneur who argues that parents should consider investing private school tuition money in an index fund instead.

Jessica Tarlov

A co-host on Galloway's podcast who is a graduate of an elite New York City private school and has decided to send her oldest child to public school for kindergarten.

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What they’re saying

“If you had taken that $72,000 and over 12 years were disciplined about putting it in an index fund and the market went up 9%, you can ease your guilt and your kids' pain by giving them $4.5 million.”

— Scott Galloway, Professor and Entrepreneur (Raging Moderates Podcast)

“I look at the world. I'm out here functioning. My husband works in finance. He went to public school. A lot of his friends have huge jobs.”

— Jessica Tarlov, Co-Host (Raging Moderates Podcast)

The takeaway

Galloway's argument challenges the conventional wisdom around the value of elite private school education, suggesting that the financial investment may not always pay off in the long run compared to simply investing the tuition money. This raises important questions about the purpose and efficacy of the private school system, as well as the role of public education in providing quality learning opportunities.