Which is the higher priority, retirement savings or college funding? (Article)
Which is the higher priority, retirement savings or college funding?
You want to save for your child’s college education, and you need to save for retirement, but you’re not sure you can do both at the same time. What do you do? You need to make one sacrifice, and as tough as it may seem, it is more important to save for retirement.
There are many different ways to reduce the costs of college, but that is not true for retirement. There are support systems available for funding college education such as scholarships, student loans, or grants. There are also different costs to choose from when picking your college education such as choosing a local university to receive in-state tuition or selecting a public university over a private one. Not so for retirement.
In the end, saving for retirement over your child’s college education will benefit your children. You don’t want to have to burden your kids with your retirement costs; rather, you want to be able to gift to your children when you have more than you need. Your funds and assets will most likely transfer to your children in the end, and if you saved well, these funds may go into your child’s retirement savings or towards your grandchild’s education.
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