| The list of hard choices and sacrifices | | | | that will never happen. If you think it's |
| parents make for their children is endless. | | | | impossible to save, trick yourself. Your bank |
| Send them to soccer camp or little league, | | | | can set up automatic allotments to your |
| enroll then in private or public school, give | | | | savings account. Start with $200 a month. You |
| them a 10p.m. or midnight curfew - the list | | | | won't see the money, so it's easier not to |
| goes on and on. One thing that shouldn't be | | | | spend. If you feel comfortable without $200 a |
| on that list - save for college or | | | | month, increase the allotment to $300 and so |
| retirement. | | | | on. We tend to adjust to what we have. Ever |
| | | | wonder how millionaires go broke? |
| It might sound harsh, but parents shouldn't | | | | |
| sacrifice their own financial security for | | | | 3) Look at all the options - There are more |
| the sake of their children. What they should | | | | paths available for financing a college |
| do is figure out how to save for their | | | | education than there are for retirement. For |
| children's college education and for their | | | | Example: You can't get a retirement loan, but |
| own retirement at the same time. The sooner | | | | there are many types of student loans. |
| they figure this out, the better. | | | | Scholarships and Grants are another great |
| | | | source. Many students will assume they won't |
| Unfortunately, saving usually ranks lower on | | | | qualify. Encourage your children to always |
| the list compared to other priorities. People | | | | apply, because many times acceptance is based |
| in their 20's may be focused on paying off | | | | on more than grades and income. Compare the |
| student loans and credit card debt. People in | | | | costs of community college, public and |
| their 30's may be focused on raising a family | | | | private universities. With loans, |
| and juggling the costs that come along with | | | | scholarships and grants, sometimes the |
| that, such as buying a first home, paying two | | | | difference between the school of choice and |
| car payments, etc. When people reach their | | | | the school of second-choice isn't as much as |
| 40's and 50's they are concerned with saving | | | | you thought. |
| for their children's college education and | | | | |
| their own retirement. And this is where the | | | | 4) Take Control - Companies are starting to |
| problem lies. | | | | drop pension plans in favor of employee |
| | | | contribution plan, such as 401(k)s, primarily |
| Getting a late start can be a challenge, but | | | | because they're less expensive. So employees |
| it shouldn't stop you from being able to | | | | are left responsible for figuring out how to |
| retire at a reasonable age and send your | | | | invest. Don't just follow what your |
| children to school. Here are 5 tips you can | | | | co-workers are doing. Start researching, find |
| use at any age! | | | | out how to monitor the performance of your |
| | | | company to bring in a consultant to give an |
| 1) Think Realistically - Most people don't | | | | investment seminar. |
| have a concrete idea of how much money it | | | | |
| takes to retire. Since the financial needs of | | | | 5) Pass on responsibilities - Before and |
| each person will be different, try to imagine | | | | after your children start college, it's a |
| what you want your retirement to be like. If | | | | good idea to give them certain financial |
| you want to maintain the lifestyle you have | | | | responsibilities. Whether the responsibility |
| now plus travel, chances are you will need | | | | is as small as paying for groceries and books |
| 100 percent of the salary you earn in your | | | | or as big as paying rent, a car payment and |
| working years to live comfortably. If you | | | | insurance - it can be extremely beneficial. |
| plan to live a much simpler life in a less | | | | There are many jobs that allow time for |
| expensive area, it might be possible to get | | | | school and studying. Encourage them to seek |
| by on 60% of the salary you earn in your | | | | out paid internships, part-time jobs on |
| working years. If life expectancy is about 80 | | | | campus or seasonal work during winter and |
| years and you retire at 65, you have 15 years | | | | summer breaks. Many times entry-level jobs |
| to fund. Do the math. | | | | will teach your children good work ethics and |
| | | | making financial decision will allow them to |
| 2) Start Early - And if that's too late - | | | | have more confidence in their abilities. |
| START NOW! This applies to college and | | | | |
| retirement saving. The sooner you start | | | | It is possible to save money for college and |
| saving, the more interest your money will | | | | retirement simultaneously. The key is to set |
| earn. Don't wait until it's easier to save, | | | | goals and start now. |