Real Money Matters: College Fund or Retirement Fund

It's not an unreasonable goal to save a significant amount for both retirement and your kids’ college education, but this is not always realistic. Many people will a college fund over their retirement, thinking they will always have time to save for retirement. However, keep in mind that there are options for paying for college. But if you are unable to save enough for retirement, you will be out of options, and you may end up being a financial burden to your kids.

 

While they are still in high school, start talking to your kids about their plans for after graduation and be honest about what you can and cannot afford so they have enough time to go through the options. If you can’t offer a lot of financial help, they may need to take out a student loan to help pay for their education. However, one way you can help is cosigning on a student loan for them.