College or Retire?
Americans are split when it comes to choosing between saving for their children’s college education and their own retirement. According to a new survey by Country Insurance & Financial Services, 43 percent believe saving for college is more important, while another 43 percent say retirement takes precedence.
The survey of 3,000 adults responsible for a child’s education also finds young parents and lower income groups (with a household income of less than $40,000) are more likely to favor college education savings over retirement.
“Saving for college education and for retirement are each important, but retirement comes first,” says Keith Brannan, director of the Financial Security Office at Country. “You can’t borrow money for retirement like you can for college. If people plan well, it’s possible to afford both.”
Americans Lack Knowledge:
– Four-in-ten (40 percent) are unsure or do not think they have enough knowledge to make the right financial decisions about saving for college.
– Many underestimate the expense. One-quarter (25 percent) think it will cost less than $50,000 to send children in their care to college. In reality, many studies show the average cost of attending four-year universities already surpasses $50,000.
Despite the rising cost of college education:
– A vast majority (78 percent) of Americans still view college as a good investment.
– A majority of parents (62 percent) still plan to take responsibility for funding the bulk of college costs.
What do you think? Let me know at ssimpson@oklahoman.com
Susan Simpson, Education Writer
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