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