Many parents are usually at a cross road as to either save for their retirement or college education for their children. With the growing economy cost of living is on the rise and that means you need to save even more money for your retirement. On the other hand, the cost of college education is high especially with the private colleges and is set to get even higher in future. Trying to save for retirement and college could be overwhelming, and the amount of the two accounts may never be enough to achieve the intended objective.
Savings for retirement
Even as your children are almost getting to college it is important you keep your focus on retirement savings. The saving could be made either in a personal savings account, company pensions or with social security funds. After you retire, the funds from your choice of savings will be given as installments, or the whole amount depends on the agreement.
Even with competing priorities for savings such as college education for your children, you need to ensure that you have enough money for your retirement. With little savings for your retirement, you may be forced to move in with your children or relatives which may not be ideal.
It is important to have the cost of college education of your child covered at the start of freshman. Higher education for your child may come in conflict with your retirement saving, but starting the saving for the college fee as early as at birth help you avoid this conflict. The money can be saved on a compounding or simple interest rate. The other way of ensuring you have the college fee is by taking education cover for your child in advance so that by the time he/she gets to college, you have enough money to cover college education.
In a case where the savings are not enough, other ways to raise money for college are:
Scholarships: some institutions offer academic and sports scholarships. Every year thousands of dollars are given either as a partial scholarship or a full scholarship. Given that your child meets the qualification based on either special skills, academics or sport getting such funding is secure.
Student earnings: the student can help finance his education by working during the summer or within the school for part time job. This money can help take care of other non-tuition needs.
Loans: there are education loans offered to students at lower interest. The student can take advantage of this to finance their studies.
Family gifts is another likely source to fund your studies. Through the help of your older siblings and members of the extended family, you can raise money to take care of part if not the whole college fee.