My Kids’ Education or My Retirement: What’s More Important?
BY: Jordon Geiger
After tax season, my wife and I have a tradition in which we sit down and evaluate our current goals, make new goals and review and adjust our financial plan. Having three kids at home, it is important to us to set some funds aside to pay for their education (or a portion thereof depending on rising costs of education). When reviewing our goals, it became apparent that we need to fund our kids’ education savings at a more rapid pace. This of course will affect our funding for retirement, if we want to meet our education funding goals for all three kids.
Examine Your Funding Needs
- Defer your retirement and work longer.
- Reduce your standard of living, now or in retirement.
- Increase your family income by getting a second job or having a previously stay-at-home spouse join the work force.
- Seek out more aggressive investments (but beware of the risks).
- Expect your child to contribute to college.
- Investigate less expensive colleges. You may find that some less expensive state universities have more to offer in certain programs than their pricey private counterparts.
- Consider other ways to reduce the cost of college, including online learning, accelerated degree programs, starting off at community college, or searching for college scholarships.