(Originally posted on USAA’s Inside the Mission blog)
Never did I realize the double-whammy of parenthood more so than when my wife and I had twin babies. I’m not talking about the middle-of-the-night feedings or the boxes of diapers that we go through at a lightning pace (I knew I should have bought stock in Pampers!). The real question for us is how to make it work financially. Specifically, given a choice between saving for our retirement or college funds for the kids, which one wins?
As a parent, you want to do everything you can for your kids. My parents showed me the importance of making things better for their children than they were for themselves, through their hard work. College costs are skyrocketing, but we certainly don’t want to deprive our kids of getting the best education possible. Yet we know we’ll have to stop working at some point, and will need a significant amount in savings in order to enjoy even a modest retirement. So how do parents these days balance these two seemingly competing interests?
As Scott Halliwell shows in this video, saving for retirement is more important for most people for three big reasons. Check out the video: