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Saving for College

Posted by f18lumpy on 6/14/2008 at 9:22 PM | 7 answers | 746 views
Which you place greater importance upon, saving for retirement and building wealth or saving for your children's college education?


Always get your retirement going first.
coming from someone who just graduated and debt free after being out of college for 1 year, with no help from family.
--> Save for retirement first. Teach your kids to hate debt and they will figure out a way to pay for college themselves. Trust me, I did, and I'm not even that smart.
Definitely retirement first. There are loans for college students but there are no loans for a retiree.
I fourth the votes for retirement first.
Retirement and savings are the first two. Then save some for college. A good education isnt that expensive at a great state schoold Cal/UCLA/Michigan etc so you can make college savings #3 If you have the funds a fancy private education can't hurt but it's not a good absolute value. If you are rich go to Yale.
markwws said it best, and I remind myself of those exact words nearly every day. That said, I use an 85/15 rule. Out of the money that I put away for those future big ticket items (retirement and college savings), I put 85% of it towards my (and my wife's) retirement, and 15% into my kid's college fund.

By the time my kid is 18 and college bound, I'd like to have at least $50-60k in there for expenses, but if it doesn't happen, that's what state schools and education loans are for. Higher education is an investment for future gains, so there's plenty of potential for your kid to pay off (reasonable) debt afterwards. Retirement is the end of the line with no lifeline out there for poor planning.
We're prioritizing our retirement over the kids college funds. We contribute to both, just more for retirement than college. I was fortunate that scholarships, a little bit of work and my parents finances allowed me to graduate debt free. I hope to do the same for my children, but it will not be at the expense of them having to take care of me financially in my old age. I don't want them to have me and my wife as a financial burden at a time in their lives when they'll have families of their own and a future to plan for.

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