Karen Zeigler

Saving for Retirement vs. Children's College

I often get this question:  Which should I save for first...my retirement or the kid's college?  It's a great question and when parents are working on a tight budget you want to make sure that you are doing the right thing. 

A good life analogy for this one is the emergency drill on an airplane.  You remember the flight attendants reminder "should the oxygen mask drop from the ceiling...those traveling with children must put on their own mask first before helping your child".  Why?  Because if you don't get the oxygen you need then who will be there to help the children.  The worst case scenario is, if you don't first save for yourself it could be detrimental to both you and your child.

The same applies to whether you should save for your retirement or your child's college.  The worst case scenario is you end up in retirement with insufficient funds to take care of yourself.  Now your child, who is grown and probably has a family of their own to care for, has to provide for you financially through your 20+ retirement years.  It a much smaller burden on the child to obtain low interest student loans for 4 years than to take care of the health, finances and wellbeing of an aged parent or two for 20+ years.  In addition your child may end up with a scholarship which pays for school or in a profession that covers the cost of education.  And I can promise you there are no scholarships for retirement, only government assistance which doesn't amount to much.

So if you are having thoughts that saving for yourself before your children is selfish I hope you wipe those right out of your mind.  On the contrary, saving for your retirement will be a blessing to your children.  Because when you retire you'll be able to better enjoy them and the grandchildren because you are financially prepared. 

Can We Talk?

Ask most couples what topics they discuss in the area of finances and most will reply that its more arguing than positive discussions.  For the most part the complicated nature of finances along with the pressures of bill paying, debt, etc. leave finances a topic to be avoided rather than embraced.  However, being intentional about engaging in positive discussions about your finances as a couple can be not only exciting but empowering. 

I'm not sure who the quote belongs to but I love the goals setting quote that says "Aim at nothing and you'll hit it every time".  Financial goals are the same way.  If you don't discuss them, come to an agreement of what they should be, write them down and revisit them regularly then it's 99.9% likely that you will never obtain them.  So you agree but perhaps don't know where to begin? 

Well this week's article in the Wall Street Journal titled "Can We Talk?"  contains the 10 most important questions you and your spouse should ask each other about retirement.  So I encourage you to print out the article and plan a date night to discuss the 10 questions from the article.  You will also find the planning calculators at Bankrate.com useful in accessing where you are and what's needed to arrive at your goals. I'm certain you'll come away more connected, inspired and empowered to build your dreams and future life together.

Save Money by stopping the Top 10 Money Drains

Most individuals that I talk with that are in a rut financially initially think that they don't have a dime to spare for saving and so why bother.  My first suggestion is to track their daily expenses for a month and report back to me if they still feel they have no way of saving.  Generally within a week or a few days they are calling to tell me "I can't believe how much money I spend everyday!  I never realized how quickly all the small things add up!".  Check out Bankrate.com's article titled Top 10 Money Drains and see how quickly the little expenses add up to a lot of money. 

I think it's interesting how Satan twists our thoughts.  If we're spending he whispers in our ear "Oh, it's just a small amount don't worry about it".  He even tells us the same lie when we are considering saving "Oh, it's just a small amount don't worry about it."  Stop listening to that voice and believe the truth found in God's Word.

Proverbs 13:11 Dishonest money dwindles away, but he who gathers money little by little makes it grow.

What's holding you back financially?

What's really holding you back? CNN Money in their article Beat Back 5 Financial Fears talks about 5 common fears that hold us back. 

1. Fear of coming clean with your spouse
2. Fear of not fitting in
3. Fear of being penniless
4. Fear of success and wealth
5. Fear of taking the financial reins

Fear, we as Christians come to understand, is a tactic that Satan uses to keep us from God's best for our lives.  Take the opportunity to read the article above and resolve to adopt strategies today that will help you overcome your financial fears.  And don't forget God's Word.  It is the most the powerful tool that you can employ and I recommend praying Proverbs 3:21-26.

Save Yourself From Debt

There are two primary reasons that most of us find ourselves in debt.  1.)  We spend more than we make...sometimes spending before we even make it.  (Proverbs 27:1) and 2.) We don't have an Emergency Cash Fund (money in savings).  (1Timothy 5:8)

Today's blog is about building an emergency fund, savings account, rainy day fund or whatever you choose to call it.  Taking the steps to save for this account will literally "save" yourself from debt!  Think about it.  Many of the items that are on your credit card statement at this moment that you called "emergencies" would have never made it to your bill if you had cash in the bank upon which to draw for emergencies.  If you agree and you are seeking to become debt free then your first order of business should be to open an account and begin saving.  Below are some useful links to determing how to fund the account quickly:

Building an Emergency Fund

Bank of America's Keep the Change Program

When you put your mind (Romans 12:1-3) to something you'll be amazed at the creative ideas that you can come up with to accomplish your goal.  Be sure to share your creative ideas on funding an emergency account with everyone here on the blog by posting a comment.