Parents face a challenging set of competing priorities when deciding whether to save for their children’s college or their own retirement. Many would feel guilty if they didn’t put their children first, but the reality is, retirement savings should be the priority. If parents don’t don’t take care of their futures, then they will become a burden on their children later on. There are options to help cover the costs of college. Students should consider best value colleges, part-time jobs, or even starting at a community college before transferring to a four-year school. Meanwhile, parents need to save for their own retirement.
Key Takeaways:
- Rising tuition costs have caused some parents to choose between saving for their kid’s college or saving for retirement.
- Many parents believe that burdening children with student loans seems cruel and unfair.
- Although it may seem counter-intuitive, parents should save for retirement before they save for their children’s education.
“When it comes to college savings, you have options. Use them! Pay yourself first, and then look at how you can support your children in a variety of ways.”
