Graduations are such an exciting time that can bring along waves of different emotions: pride, happiness, love, nostalgia, and sometimes even fear and worry. After all, college is often the next step after High School graduations.
I, myself, am on my second, graduating high school senior who will be attending my alma mater in just a few short weeks! How is this possible!?!?
That said, I thought it might be fun to discuss a tricky high school graduation topic. Should parents save for retirement or pay for their children’s college education? What about student loans? I don’t want my child to be entitled, but I don’t want him graduating under a mound of student debt either. Hmmm … what’s a parent to do?
Eileen Gallo, a psychotherapist, along with her husband, Jon Gallo, co-authored two books on childhood and money. Eileen Gallo says, “In a vacuum, the issues surrounding how parents choose to finance their children’s education would seem to be entirely financial in nature. In reality, the choices are modeling values, and sending important messages to college-age children,” says Eileen Gallo.
It’s not an “all or nothing” proposition. Parents can continue to save for retirement while helping their children pay for college. Key word is helping. Reasonable student loans are a possibility. Reasonable parent borrowing is a possibility. There are no loans for retirement, so parents need to be careful to not let their good intentions jeopardize their future.
Balance is the key. Talk to your kids. Talk to your advisor. Compromise is closer than you think.
The Content provided is for general information only and not intended to provide specific advice or recommendations for any individual. Talk with a financial professional before taking any actions.