Should Parents Use Their Retirement Funds to Pay for Their Child’s College Expenses?
Should parents use their own retirement funds, 401(k), Roth IRA, IRA or any other type of savings to fund their child’s education?
I believe that parents should not take any of their retirement funds out in order to fund their children’s college education expenses. Think about it, it will be a bigger burden on your children if they have to take care of you financially in old age because you have run out of money paying for their college education. Remember, your children as adults are going to have to cover their own expenses and their children’s expenses and their children’s college education cost and their own retirement. So if you are to spend your retirement funds on their college education expense, that’s one more expense which is going to stress them out when they’re in their middle age. Make sure that you have your retirement covered first; and if you have enough money or are on track with your retirement savings plan, then use the additional funds to help them with their college education expenses. If you are unsure whether or not you are on track for your retirement, seek the guidance of a financial planner. Here at TechGirl Financial we are happy to help you in this process.
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