Many budget and financial experts note that retirement saving should always come before college saving. In fact most experts think that many things (debt pay-offs, emergency funds, etc) should come before college savings. I’m inclined to agree, but some of my pals don’t agree, so I thought I’d throw it out there, and see what Simply Thrifty readers think.
Reasoning behind saving for retirement before college:
Kids can get college grants, scholarships, loans, and more. Good luck getting a retirement scholarship.
Your child may not want to go to college. If you learn this fact too late, it’s well, too late. Your money could have been invested in a nice 401(k) or Ross IRA, instead of sitting lamely in a college account.
Your future directly affects your child’s future. Do you really want to be asking your college-educated kid for an allowance when you’re 70? No? I thought not. Needing your kids to support you is a tough situation for both you and your kids.
What do you think?