Newsflash: Should We Save For Our Children’s College Or Build Retirement Savings?

A Study Shows That Some Parents Jeopardize Their Retirement To Help Their Children To Further Their Education

Time and time again, young people graduate from high school and make the plans necessary to go to college. From this statement, a question goes through a young person’s mind wondering how to afford college, if they decide to go that route. As far as options go, there are two things that can be debated on:

  • a two year college to start out
  • a four year college to finish the last two years

For some young adults, they tell their parents that they want to go a four year college, not a two year college. Some of these young students do not think about the high cost of college tuition. Some young adults want to go to a four year college because of the parties and fun that they can have, while a two year college may not have that type of atmosphere.

But as time goes by, most students have jobs that do not pay very much and most of them work part-time because they have to have the time to do their homework and study for tests. From here, it turns out that most students don’t have any money to do what they have to do.

Since parents want to make sure that their children are okay, they may have to take money out of their 401k plan to help their children. This is something that parents have to deal with. Read an article here http://www.cbsnews.com/news/save-for-retirement-or-pay-for-childrens-college/

But, questions go through a parent’s mind when they are helping their children:

  • are you helping yourself by damaging your retirement savings?
  • how can you take care of yourself in your older years?

If these two things become an issue, these young adults would have to support their parents because it is not known how long that their parents will be around to deal with other priorities, and careful decisions must be made.

tags: retirement savings, 401k, how to afford college, college tuition

 

 

Newsflash: Should We Save For Our Children’s College Or Build Retirement Savings?

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