Many parents of college-aged children face the squeeze of ever-rising tuition bills at the same time as the imminent arrival of retirement seems to jump-start the recognition for increased saving for retirement. In an ideal world, you'd easily be able to write checks to the University of Expensive for Junior's fall course load at the same time as you maxed out your 401K plan and IRA contributions. I've met some people who can do so, but most people cannot. As such, I've been approached many times in my career by people facing the dilemma of choosing between paying for college or saving for retirement. When they ask me "Who comes first?" I always tell them "You do, of course."
While it may sound cold and you should do everything you can to maximize your financial aid, you must save for your retirement. There are low-interest loans, scholarships, and grants for education. Not a single one of those sources exist for retirement.
When you stop working, there are no paychecks. If you haven't saved, there's nothing in the bank. When you're still working, better to make sure that you really do come first.
While it may sound cold and you should do everything you can to maximize your financial aid, you must save for your retirement. There are low-interest loans, scholarships, and grants for education. Not a single one of those sources exist for retirement.
When you stop working, there are no paychecks. If you haven't saved, there's nothing in the bank. When you're still working, better to make sure that you really do come first.
Contrary to popular belief, a degree in the hands of a 22 year-old is no longer (and probably never was) a guarantee of success. While many parents, I’m sure, sweat out the big question of where to direct that dollar…an invesment tool or Junior’s education…the choices are not as inundating as they are often made out to be. Consider:
1) Home town Jr. Colleges, while offering the same array of basic courses, your “101″ variety of general education courses required of most, if not all, degrees, are far less expensive than “University of Expensive”. Just make sure to coordinate with the respective registrars at each institution to ensure transferability.
2) When Junior, before gaining his degree, applies for a job, he can check with HR/Human Resources to see if educational assistance is part of the employee benefit package.
3) Military Service offers a variety of avenues for attaining education.
and
4) Gasp! Trade schools offer many skills training programs which prepare students for high-demand, well-payings vocations (revisit consideration #2). The simple reality is that, particularly in today’s economy, a degree does not necessarily hold the value it once did. As organizations contract and shrink, there will be less room within that organizational triangle for “the thinkers”. Consequently, while demand for the “thinkers” dwindles, demand for the “doers” will always be there.
lastly
5) Parents, stop feeling guilty in that you feel you owe the kids. At a certain point, they need to start swimming in the sea of life independent of parental water wings. If you are comfortably able to do so, by all means, send em to college/trade school, BUT…for a change, put youself first. You fed, clothed, and provided for a basic education for roughly 18 years. Give the birds the opportunity to fly…
Godspeed!
Sarge
There are low-interest loans, scholarships, and grants for retirement. ?
i think you meant college…
Of course, I did. Thanks for pointing it out. It’s been fixed!
There are many, many kids who would do well with just a 2 year degree. The 4 year college has achieved cult status in our society, even though 50% of entering freshmen never get a degree.