College education funds trump retirement savings goals

05.24.09
By Nicholas Storie

Given the magnitude of financial burdens facing American families since the onset of the recession well over one year ago, it has become increasingly difficult to prioritize borrowing and savings needs.

For households with college-age kids or youngsters who plan on attending a university in the future the financial juggling act may be even more complex.

Some parents are even altering their retirement savings plans to ensure college financing is available for their kids. But some experts question that decision given the availability of student loans and other scholarship opportunities.

"You can borrow money for college, but you cannot borrow for retirement," said Keith Brannan, a vice president of financial security planning at COUNTRY Financial.

"While saving for near-term financial goals may seem like a good idea in uncertain times, be sure you are not doing so at the expense of your retirement," added Brannan.

His comments come after the financial services firm revealed that 47 percent of parents surveyed consider college a higher priority in their investment planning than saving for retirement.

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Some are sacrificing nest egg money to pay for college