Choosing Between Retirement and Your Child's College Education

If you were to ask any parent what their main goal was for their child they would more than likely say for them to go to college. Now, if you ask that same person what they want for their future they would probably say for them to have a good retirement. What happens when these two things collide? There is a choice that most middle and lower class families have to choose from and these are whether to send their kids to college or to save for retirement. This financial decision is one that many families have to make even though they dread making this decision.

I have been through this with my husband and since we have six children between us, it would be almost impossible for us to actually save for each child to go to college. After further deliberation on the subject I have come up with a few things to help you make this decision and how you and your child can help in both situations.

The big choice

First of all you need to realize that your retirement is very important and if you can't live off of your social security alone then you are going to need to save for your retirement. A child's future is very important but they may qualify for things such as Financial Aid when they are old enough to attend college and they will more than likely be able to take out a loan to help pay for college. I know that you may be thinking that you don't want them to have to take out a loan that early in life but the loans aren't as bad as you might think since many are on a set rate of a small monthly payment and some don't charge an interest rate until the child finishes college. Some student loan companies are good enough that they will work with the student so that they can complete college without the financial strain of things. There are a lot of good student loan companies and the colleges will help the students get the best deals to ensure that they get a good start on life once they are done with college.

Saving for your retirement

Retirement is very important and you probably will not be able to live off of just your social security unless you move to a low income housing area and get help from the government. I don't know about you but when I retire I don't plan on living with my children or in a place that doesn't have a back yard. I want a retirement that doesn't require me to be dependant on anyone else. It is never too late or too early to start saving for your retirement and the sooner you get started the more interest it will draw and the more money you will have. Even a few dollars a month can add up over the course of thirty years. Don't feel bad about making the choice to save for your retirement since you know that you are doing what is best for you and your family.

Saving for college

Many children don't understand the importance of saving money and it is our job to teach them. My children started earning money through doing work for the neighbors and family members. The children also get money for their birthdays and Christmas. Whenever they get money I put half of it into a savings account for them so that they will have money for their future. This is not money that I take out of my own pocket but money they have gotten themselves. At first the children got mad when I did this but then they started to understand why and would voluntarily do this. Children can save for their future just like adults do and it is important that you teach them the value of money at an early age so that they can learn to be financially responsible adults.

Other ways to save for retirement and college

I love trying to find ways to save money even for my future or the future of my children. Your income tax is probably viewed as extra money but this is actually money that you have worked for throughout the year. Each year when you get your income tax two things should take affect before anything else; putting money away for retirement and putting money away for college. I usually put twenty percent back for retirement and ten percent back for the children's college fund. After I put the money back I take the extra money and pay my bills and put extra back for my emergency fund.

Saving for your future should be a priority over all of your other savings. I would make retirement a goal to stick too.