Should You Borrow From Your Retirement Savings For Your Children’s College Education?

This is such a tough question for parents who want the best for their children, and in most cases do not want them to have the financial challenge of paying for college. However, is it the wise or right thing to do? Most financial planners when asked this question will say “No”. One of the main reasons for that is, by this time, age is against most parents as it relates to earning years left. They would not be able to “borrow” for retirement (such loans are not available). However, since the children are young and have many years ahead of them, they should do the borrowing. Some people feel that this can teach the children how to be responsible and to value their education. We will take a look at a story written by Stacey Tisdale of Black Enterprise Magazine featuring a couple who took out loans to assist their children in paying for college. You determine if this can work for you.

Posted in Finances.

One Comment

  1. I recently met someone from Lincoln Culinary Institute who in conversation, told me that one of the most educated and disciplined groups of persons he has ever met is Guyanese students BUT unfortunately, they do not have access to or knowledge of scholarships and assistance that they can benefit from and that’s a shame.
    So sometime we as parents, may go into our retirement savings to assist with our kids college/university education. The lack of information may make us go the rougher route but hopefully, with well-brought up kids, its an investment we wont regret.
    However, if it can be avoided, then do so at all costs.
    It brings us back to the practice of saving and beginning to do so from an early age.
    We should encourage our children to begin to save for their future which includes to a great extent, their education.
    Thanks for posting.

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