4) Kids’ College Came First
It is completely understandable to want to put savings towards your children’s college funds. However, it is too often that people choose to save 100% of the price of their kids’ education without putting any savings towards their own retirement. There are several options for students, including need-based grants, scholarships and even loans if the price is too high to pay out-of-pocket. It is unwise to completely neglect your own retirement fund when your children have the opportunity to have some of their college covered– for free! Saving for both funds is the most ideal, and will leave both parties with more wiggle room in the future. Plus, even if worse comes to worst and your child has to take out a loan, they are just beginning their careers and have plenty of time to pay off student loans, where you could be leaving yourself high and dry.