How parents are juggling paying for kids’ education while saving for retirement as costs rise.
Updated: Oct 9
Original article by:
Kira Vermond
Globe & Mail
September 21, 2023
📰 Read the FULL ARTICLE here.
I spoke with The Globe and Mail about how parents can balance paying for their kids' education with saving for their own retirement. Here are the highlights and my contributions.
Key Takeaways
Most parents feel it's their duty to help pay for post-secondary education, and many say they'd even take on debt to do it.
Advisors recommend putting your own retirement first, since kids have more ways to fund school than you have to fund retirement.
Covering an entire degree can create dependence, while sharing the cost builds self-reliance.
Talking with kids early about expectations and career plans can help avoid costly changes of major.
Scholarships, grants, part-time work, gap years and less expensive schools can all ease the load.
My Perspective
When I was in high school, my parents were clear about what they expected: we would split the cost of university 50/50. I worked at Starbucks to cover my half, and I'm convinced it was worth it.
"My parents had it right with the 50/50 approach, giving me some skin in the game."
Paying part of the bill meant I took my studies seriously and graduated without a heavy debt load. Just as important, my parents' retirement goals stayed on track. With tuition rising, a shared approach like this can be a good middle ground for families today.
"I took my education seriously because it was coming from my pocket too and I didn't have any trauma of big debt later."
Originally published in The Globe and Mail by Kira Vermond on September 21, 2023. Use the link at the top of this post to read the full article.
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