As a parent, you want the best for your children—including a quality college education. But securing your own financial future is just as important. After all, your kids might get scholarships, but no one’s handing out “retirement scholarships” for parents who forgot to save. So, should you prioritize saving for college or your retirement? I asked two advisors who specialize in education planning from my Wealthramp network to weigh in.

Balancing Short-Term Goals With Long-Term Success

Wealthramp advisor Shawn Perkins, CFP® emphasizes that you don’t have to choose one over the other—having a strategy is key. If helping with college costs is a priority, there are ways to do it without shortchanging your retirement.

Retirement Security Means Your Kids Won’t Have To Take Care of You Later

Shawn suggests starting by taking full advantage of any employer-matching contributions to your retirement plan– it’s free money that you shouldn't miss out on. If your employer offers a Health Savings Account (HSA), consider contributing to it for the triple tax benefit: tax-deductible contributions, tax-deferred growth, and tax-free withdrawals for qualified medical expenses.

Next, he recommends that you assess your cash position. Is your emergency fund sufficient? Are there any big-ticket expenses coming up in the next few years? Having accessible cash protects against the unexpected and allows you to seize opportunities as they arise, not to mention the peace of mind it brings.

Why Retirement Comes First

• No loans for retirement: College can be funded through financial aid, but funding your retirement is entirely up to you.
• Earning power declines: Delaying savings makes it harder to catch up.
• Healthcare costs rise: A strong retirement plan ensures future medical expenses are covered.
• Financial independence matters: Insufficient savings could mean relying on family or government support.

Using 529 Plans for College Savings

Wealthramp advisor Dean Lyman, CFP® who also is a Certified College Financial Consultant (CCFC) suggests that once retirement is on track, 529 plans are a great option for tax-free growth and withdrawals for education expenses. Benefits include state tax deductions, flexibility, and minimal financial aid impact. Unused funds may be converted to a Roth IRA.

The Reality of College Costs: Affordable College Options

If contributing to college isn’t feasible, explore financial aid, scholarships, work-study programs, and in-state universities to cut costs. Completing the FAFSA is crucial, even if aid seems unlikely. While a college education is valuable, it's really important to approach college planning with a realistic mindset. The 529 plans are a great resource for saving for your child’s college education, however, Dean acknowledges that many families don’t always have the luxury to help contribute. But that doesn’t mean there aren’t resources available. You should consider:

Financial aid and scholarships

When searching for scholarships, it's essential to explore various avenues. Start with your high school guidance counselor or college financial aid office, as they can provide information about local and institutional scholarships that may not be available online. Additionally, utilize free online scholarship search engines like Fastweb.com and the College Board's BigFuture to find potential opportunities.

Student loans

The Federal Student Aid website is another valuable resource for federal grants, loans, and work-study programs. Remember to complete the FAFSA form, even if you don't think you'll qualify for aid, as your eligibility or the college's financial aid offerings may change.

Work-study and part-time jobs

These can help students contribute to their education expenses.

Alternative paths

Community colleges, trade schools, and in-state universities can provide affordable education options. You should also consider contacting professional organizations and foundations related to your field of study, as they often offer scholarships or networking support.

Final Thoughts

Prioritizing retirement while using smart college savings strategies ensures a stable future for both you and your child. If you need guidance, a vetted, fee-only fiduciary financial advisor can help create a plan that aligns with your goals.