According to financial guru Dave Ramsey, retirement funding should take priority over funding college for your kids. Why does he feel strongly, and is there any way to save for both?
Why It’s Smart to Plan for Both
Some parents have gone as far as to take money out of their retirement funds to pay for college for their kids. We understand. This is an emotionally charged subject. You’re thinking about your kids ahead of yourself, and that is what all good parents do. At the same time, look at it from the standpoint of your children.
If you give up saving for retirement to fund a child’s college tuition and then he or she doesn’t get a great job right out of school or make good financial decisions, now you have no one to help you when you get older. This creates guilt for your son or daughter. So don’t let feelings of guilt cause you to make a decision that really may just transfer the guilt from you to your kids.
Can You Do Both?
Can you provide the necessities for yourself during your golden years and still help your kids acquire a college education? With the right planning, it may be possible. College Planning Source can help with our early college planning and funding advice, and the earlier you start, the better. So give us a call today at 858.676.0700, or you can submit our online contact form for more information.30