Many parents have the lofty goal to cover the full cost of their children's college education.
A record share of parents in the US — 41% — plan to pony up for their kids' entire higher education bill, up from 37% in 2024, according to new research from Fidelity Investments.
That's great news for the kids. But it's rarely a wise move for their parents.
"Unless parents have fully funded their retirement — meaning that they have already saved all of the money they will need — footing the entire bill for children' s education is rarely the best move and can be detrimental to parents' own future," Liz Windisch, a wealth adviser in Denver, told Yahoo Finance.
The motivation is genuine. Nearly 9 in 10 parents say their own student debt motivates them to help their kids, and more than half say having to pay off their loans delayed them from starting to save for retirement.
#kids #bill #Retirement #many
A record share of parents in the US — 41% — plan to pony up for their kids' entire higher education bill, up from 37% in 2024, according to new research from Fidelity Investments.
That's great news for the kids. But it's rarely a wise move for their parents.
"Unless parents have fully funded their retirement — meaning that they have already saved all of the money they will need — footing the entire bill for children' s education is rarely the best move and can be detrimental to parents' own future," Liz Windisch, a wealth adviser in Denver, told Yahoo Finance.
The motivation is genuine. Nearly 9 in 10 parents say their own student debt motivates them to help their kids, and more than half say having to pay off their loans delayed them from starting to save for retirement.
#kids #bill #Retirement #many
3 days ago
