A Third of Parents No Longer Saving for College

re: A Third of Parents No Longer Saving for College

HDCS — Fri, 17 Oct 2008 20:33:14 GMT

Ditto on the retirement over college savings. As long as the government is offering killer rates on student loans, it is in a parent's best interest to max out their retirement savings before worrying about college for the kids.

However in reality, I think many aren't even able to save for retirement or are just failing to do so. And the amount of money people are graduating with is getting obscene. Given that last one, the hubby and I are saving for both regardless of what are financial planner advises. We don't want to saddle him with that burden. Plus the grandparents on both sides were insistent on contributing to the kidlet's college so we set up the 529 for him.

re: A Third of Parents No Longer Saving for College

leahsmom — Fri, 17 Oct 2008 19:12:09 GMT

Julie - that probably depends on your tuition burden and how much the student can earn. I worked through college and grad school - in college, sometimes I was working three jobs at one time in addition to classes. I also had student loans, was lucky enough to receive some scholarships, and my parents also made a contribution of perhaps $6 or $7K/year to my education. We were a middle class family - upper middle class, with two parents and two kids, with a family income of I'd guess about $80 or $90K/year - but I was fortunate enough to get into a private college with a great name, so we all pitched in to help. I think it's good for college students to work - but I couldn't have paid for it on my own, and I hope that my kids can take less than 3 jobs to make ends meet.

re: A Third of Parents No Longer Saving for College

Margaret — Fri, 17 Oct 2008 19:10:41 GMT

I'm on the retirement bandwagon. Every financial expert you ask will tell parents that saving for retirement is more of a priority than saving for college. I hope to be able to do both but I am also a college grad whose parents didn't save; so I know my kids will have options just like I did.

re: A Third of Parents No Longer Saving for College

lilacorchid — Fri, 17 Oct 2008 19:06:50 GMT

It's not as crazy as it sounds to stop saving for your child's tuition. Students can always borrow money or work, but no one is going to lend you money for your retirement.

re: A Third of Parents No Longer Saving for College

Julie — Fri, 17 Oct 2008 18:43:43 GMT

What is wrong with college students paying for their own schooling by working during high school summers and during college? I don't think parents should have to pay for it once they are adults (age 18).

re: A Third of Parents No Longer Saving for College

JeanneSager — Fri, 17 Oct 2008 18:26:48 GMT

I read somewhere that it's better to save money for your retirement than it is for their college - because we're going to be screeeeeeewed come retirement age, but they can at least apply for loans for school.

re: A Third of Parents No Longer Saving for College

Shannon LC Cate — Fri, 17 Oct 2008 18:04:34 GMT

We're going with the "play Mozart for the baby and plan she'll be a genius who gets a full-ride scholarship" plan ourselves...

Oh, and vote for leaders who plan to make higher education more realistic to pay for.