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Which comes first: Saving for your retirement or your…

Jun 24, 2021

Spoiler alert: It’s not even close. You should save for retirement first.

However - and this is a BIG however - you can do both. Setting up a college savings account alongside your retirement planning will benefit the whole family. You will give your child a great start toward college while you concentrate on building your nest egg for retirement.



Many grandparents want to help their grandchildren achieve their dreams of college. Unfortunately, how grandparents save or offer assistance can unintentionally reduce a student’s eligibility for financial aid. Knowing some of the rules in advance will ensure that a grandparent’s good intentions are fulfilled without penalizing the student.

If you are a grandparent (or soon to be one) here are a few things to consider when planning to help save for college.






When you buy expensive things -- a TV, a car, a house --, you most likely take more and more time to carefully consider the risks, rewards, and probable outcomes associated with the purchase as the price increases. No one wants to waste hard-earned money. In addition to knowing the purchase price, you will likely have a good handle on the ultimate cost, including after-purchase expenses such as maintenance and insurance. This is true for nearly all consumer transactions -- except for purchasing an education.



There are many types of bank accounts that students will find useful in the coming years. We’ve already discussed savings plans specifically for college in another article, so this is an overview of some other basic financial accounts. Keep in mind, most of these accounts are Government-insured, meaning the first $250,000 of an individual’s total deposits are protected against a bank/credit union failure through the FDIC (Federal Deposit Insurance Corporation) for banks or NCUA (National Credit Union Administration) for credit unions.