Before a child is born, every parent considers (even if briefly) the cost of raising a child and to put them through college. And the question about saving money that youll consider at some point is: how do I evaluate whether I should be saving for my own retirement or saving for the kids college?
The obvious answer is to save for both. But few young parents have the earning power and lifestyle discipline to have extra money left over at the end of the month. It simply isnt practical for most families or young parents to do so.
When it comes to paying for college, there are many resources to tap. The most common sources are student loans, grants, scholarships, tax credits, work-study, employer assistance, or financial aid from states/federal agencies/community organizations. If that isnt enough, the student could choose a school with cheaper tuition, work part-time, or work full-time and postpone entering school to save up more money.
There is always a way to fund a college education or trade school training (even an expensive one). But there is no way to finance a retirement. None. (You can apply for a reverse mortgage to spend the equity that youve built...