I’m so glad I had parents who encouraged in me what you are encouraging in your children.
I was accepted to a very prestigious university, and as my friends, their parents, and other adults (including some family) found out, there was mostly encouragement to just go there. The attitude was, “why wouldn’t I want to go there? Just think of the opportunity!” They we’re shocked I was thinking of attending a state school instead of automatically saying yes to the prestigious one.
My parents were much more practical, pointing out how much it would cost - even after the scholarships I’d be given - and how much debt I’d have at the end of 4 years.
They pointed out how difficult it can be to go a long ways away for college sometimes, and how young adults of that age can struggle, especially in the first year. I saw that happen to many friends and acquaintances; leaving to a school far away, only to move back much closer to home after a year or two.
One friend who wasn’t strongly encouraging me to go to the prestigious school? Someone who was in a grad program at that prestigious school. He was confident I’d succeed and be happy at either a smaller, state university, or the big name one. When I chose the state school, this friend - who had been pretty neutral up to then - said he was very impressed and happy that I went the way that I did.
All the people who hadn’t had that experience seemed pretty hesitantly approving of my choice to go to the state school. “Oh, you chose that one? ... well, good for you!”
I later ended up working at the same company as many people from more prestigious schools, and graduating from the state school with no debt let me be a co-founder of a company much earlier in my life than if I had tens of thousands of college debt. I’m totally happy with my choice.