Put yourself before your kids. Sounds like lunacy, right?
Well, it depends. When it comes to choosing between your own retirement and your child’s college education, the answer is simple, some say. Your child can get a student loan for college and various other forms of financial aid. There is no such loan for retirement. While at first blush it may appear that you’re minimizing the value of a college degree, the opposite could likely be true.
Forcing your young adult to contribute to financing his or her college education may actually result in better performance since the student will, literally, have more invested in the process.
MSN Money’s story, “6 reasons not save for kids’ college” is to some as shocking as it is thought-provoking. Rarely is the topic broached in such bold fashion: Your kid will be just fine, if he chooses to go to college at all.
Savings plans designed to help you get a jump-start on your child’s education have proven valuable to many. Truthfully, it’s perhaps never too early to begin saving for something that could easily exceed $30,000 per year for a private school, and more than $15,000 for an in-state, public school. The idea of postponing saving in place of say, purchasing a home or saving for retirement, seems off-center.
However, when the time comes — assuming the economy will recover, along with home values — you could get a home equity loan to pay for college.
Well, that’s one reason. Read here for the others:
– Education funds have pluses and minuses
– Students can help foot the bill with a part-time job
– You can save thousands of dollars by sending your child to junior college, and by allowing them to stay at home another two years
– Your financial situation could change — for the better. You may be better able to finance college in the future than when your child is very young.
– College isn’t necessarily the preferred path for everyone
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