Tuesday, January 11, 2005

Retirement vs. Kid's Higher Education



Interesting and pertinent article on Bankrate.com:

"Retirement Savings vs. Kids' Education"

I pretty much agree with what the author says there. Since it's The Kid who gets the benefit of the higher education, it stands to reason (to me, anyway) that The Kid ought to be the main responsible party for paying for said higher education.

To quote Dave Ramsey: "Your kid's college degree won't feed YOU at retirement."

Besides, there are lots of ways to fund college education: scholarships, grants, student loans (though I'm not a big fan of them), and (heaven forbid!) working your way through college.

As for our personal situation, my wife and I intend to partially fund our two-year-old daughter's college education. Our daughter currently has two 529 accounts, and once the last of my student loans are paid off this year, I plan on opening a Coverdell ESA for her also.

— Posted by Michael @ 12:43 PM








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Thoughts on my personal finances, goals, experiences, motivations, and accomplishments (or lack thereof).

My financial life began turning around when I took responsibility for it.
— Dave Ramsey


100%

Start (2005-12): ~$21,900
Currently: $0
[About Our Debt Paydown]

100%

Savings Goal: $15,000
Currently: ~$15,115
[About Our Liquid Savings Goal]