(ThyBlackMan.com) Save for college or save for retirement?
Torn between parental instincts and the stark realities of retirement planning, more families are having to face this gut wrenching choice.
Add the pressures of the current economy that leaves little left-over money lying around, and the decision becomes even tougher.
Yet too often I see parents make the wrong choice. They proudly set aside money for Junior’s college education and have little left over for their own retirement.
Yes, parental loyalty to the little prince or princess of your household should be sacrificed for the sake of retirement. Sounds cruel but consider this simple fact:
There are several ways to finance a college education. Grants, scholarships, federally guaranteed loans, as well as private student loans all remain options.
But there is no way to finance a retirement. The over 65 PELL grant doesn’t exist. Neither does the Golden Years retirement scholarship, and forget 
about federally guaranteed retirement loans keeping you out the poor house.
When you don’t have money for college, options are available. When you don’t have money for retirement, cans of Alpo and Ramen noodles could be in the future.
What can you do to extinguish the parental guilt of leaving little Kayla or little Justin fending for themselves when it comes to higher education?
Give the Gift of a Strong Academic Foundation
My parents couldn’t afford to save for my college education. But they gave me something far more valuable – a strong academic foundation.
They scrimped and saved for several years – not to buy a new car or large television, but to purchase a set of encyclopedias. (Yes the internet as we know had not been invented yet). Their next major purchase – a Commodore 64 computer.
Television and video games were off limits until the homework had been successfully completed, and unlike today, when many kids multi-task as they study (texting, facebook, email), we studied with no distractions.
B’s were not the answer. Expectations of A’s or that we had absolutely tried our best was the rule. My brother and I need not dare think about sports until our grades were in check, and you better believe my parents attended every open house and parent-teacher’s meeting.
Creating a home environment where the pursuit of academic excellence reigned supreme proved more valuable than any amount of money in a college savings account. The academic discipline it fostered propelled me through high school, college, as well as graduate school – and serves me well to this day.
Start the Scholarship Search Early
Scholarships aren’t only for athletes or the super smart.
Hundreds of thousands of scholarships are awarded on the basis of things such as community service, religious affiliation, leadership, and membership in certain organizations. There are even scholarships for people who excel in particular hobbies.
Your child may be eligible for scholarships she never even knew existed. Treat it as a numbers game. The more scholarships you apply for the more money you’ll win. Use websites like fastweb.com and collegeboard.com to search for scholarships that are applicable to your child.
Don’t forget to check local sources as well which may offer scholarships for people specifically living in your city, region, or state.
Remember the keys to free scholarship money – start early, apply often, and be organized
Build the College Fund After You’ve Taken Care of Retirement
Nothing says you can’t save for your child’s college education. Just do it after you’re well on they way with your own retirement savings. As airline attendants are so fond of reminding us – in case of emergency fix your oxygen mask first before helping others.
Experts suggest that you’ll need to accumulate retirement assets that will pay you 70% to 100% of your current salary every year after you retire. How can you tell if you’re saving enough?
Use one of several free financial calculators like this one at msnmoney.com to estimate how much you need to tuck away each year for a decent retirement. Alternatively, consult a financial advisor to help determine your monthly retirement savings needs.
Saving for college is important but it shouldn’t come at the expense of your retirement. Grants, scholarships, and loans can help provide for a college education but there are no grants or scholarships for your golden years.
You don’t want your educated kids visiting you in the poor house.
Staff Writer; Dr. Charles Alonzo Peters
For more tips on Wealth building do visit; MochaMoney.
Also follow Alonzo on Twitter; http://twitter.com/OurMochaMoney
