Many families experience the “financial tug-of-war” that comes with saving for a children’s education while preparing for retirement. You want to support your child’s future—but not at the expense of your own long-term financial security.
Fortunately, with intentional planning and prioritization it’s possible to do both.
Finding Balance
College tuition costs continue to rise, with the average cost of college in the United States at roughly $38,000 per student per year.
As children near college age, the pressure to prioritize education savings can intensify. However, neglecting retirement in the process may contribute to long-term financial strain.
Loans, grants, and scholarships are available to help pay for education, but there aren’t any financial aid programs for retirement. Finding the right balance is essential—not only to support your child’s future but also to protect your long-term financial well-being.
Prioritizing and Planning
While it may sound counterintuitive, putting retirement first can put your family in the strongest financial position. Think of it like an oxygen tank: You can support others better when you’ve secured your own foundation.
A strong financial plan starts with well-defined, measurable goals for both education and retirement. Knowing what you’re aiming for—and when—can help you allocate your resources strategically rather than emotionally.
Smart Ways to Simultaneously Save
Balancing savings doesn’t mean choosing one goal and ignoring the other. Some strategies include:
- Leverage tax-advantaged accounts
401(k)s and IRAs can help you save for retirement efficiently; 529 plans offer tax-free growth for qualified education expenses - Automate your savings
Setting up automatic contributions to both education and retirement accounts helps ensure consistent progress over time - Align investments with time horizons
Education savings may need to be more conservative as college approaches, while longer-term goals like retirement may allow for a more growth-oriented portfolio - Use Roth IRAs strategically
In some cases, Roth IRAs can provide flexibility, enabling you to access contributions for education, if needed
Flexibility and Trade-Offs
Effective planning also involves recognizing when and where there’s room for adjustments. Not every child needs to attend a high-end private university to be successful. In-state schools, scholarships, part-time work, and federal aid can help reduce the financial burden.
When it comes to education costs, it’s important to evaluate what’s necessary versus what’s expected. Encouraging your child to contribute to their own educational costs can be a valuable lesson in responsibility—and can help preserve your retirement strategy.
Data-Backed Decisions
Competing priorities, like saving for education while preparing for retirement, can make financial decisions complex and emotionally charged.
An evidence-based approach provides clarity by grounding decisions in data, long-term market trends, and forward-looking analysis that align with your goals and timeline.
Working with an advisor who takes the time to understand your objectives and model different outcomes—like funding college without derailing retirement—can help make your plan more resilient. The goal is to provide greater clarity and confidence as you navigate both responsibilities.
Strategic Goal Settings
Balancing education and retirement savings isn’t about prioritizing one over the other—its about making informed, intentional decisions that serve your family in the long run. A well-crafted plan can enable you to invest in your child’s future—and protect your own.
Commentary provided in collaboration with Symmetry Partners, LLC. Symmetry Partners and Axis Wealth Partners are unaffiliated entities. Symmetry Partners is an investment advisory firm registered with the Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Investing in securities involves risks, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful. Content is provided for informational purposes only and is not advice. Neither Symmetry partners nor Axis Wealth Partners provides tax or legal advice. Discuss all strategies mentioned with a qualified professional prior to implementation.