Saving For Your Retirement Versus Saving For Your Child's College

podcast Oct 12, 2021

Saving For Your Retirement Versus Saving For Your Child's College

 

This episode discusses the question many parents will be faced with at some point. Should they save for their children's college education or for their own retirement.

With college costs increasing around 8% annually and students graduating with $37,000 in debt, it is natural for parents to feel obligated to help their children defray some of the costs. 

However, parents must ensure they are not sacrificing their retirement savings to pay  for their kids college.

Who Is Going To Take Care of You? 

Before you pull out your checkbook to write ask yourself if you have saved adequately for your own retirement.  Are you going to be a burden to your children?

I feel the best gift that we can give to our children is for us to save adequately for our retirement.

So let's talk about some of the options that are available to help you finance your child's education, especially if you don't have the resources to send your child to their top college.

There are a number of options to help fund college

    • Attend a junior college for the first two years which on average cost about $9,000 per year.
    • Consider scholarships.There’s a scholarship for just about everything imaginable, whether it's for academics or it's for athletics.
    • Grants from the state and college institution
    • Part-time jobs and co-ops
    • Responsible borrowing  

Parents talk to your children to determine the best course of action to achieve their Determine if the economics make sense? 

In an ideal world, it would be great if we could fund both our child's education and our retirement, but it's rare that we live in an ideal world.

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