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The Family: Saving for Retirement and College
As a parent, there will probably be a time when you’re trying to save for both retirement and college. Since college for your kids is more likely to arrive sooner than your retirement, you may believe that college should be your first priority.
But this may be a matter more of the heart than the mind, because saving for retirement first may be a better idea. Here’s why.
Considering the Future
Saving for retirement is part of being a responsible parent. If you do not have the money to take care of yourself in retirement, this responsibility may fall to your kids. Remember, saving for retirement is a way of protecting their future as well as your own.
Understanding Financial Aid Evaluations
There are no scholarships for retirement. On the other hand, there are many good sources for college money. College financial aid offices usually overlook the balances in retirement accounts in assessing who gets loans and scholarship money.
Saving Now
Whatever you do, save. Retirement accounts and 529 College Savings Programs both offer tax advantages. And the sooner you start, the more growth potential you’ll have for the future. So, whether you use the money on a campus or a golf course, you’ll have more choices later if you choose to save now.
For more information, please check out our online course on Saving for College.
This is general information, and actual provisions will be determined by your retirement program provisions.
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