[mumgy]

Originally Posted by Ester

I just read a recent article on MSN money that reiterated Suze Orman's stand on why parents should not save for kids' college.

"No, it won't make you bad parents. It's fiscally irresponsible to spend your retirement money on your children's education."

Six reasons they gave:

1. You can't get a loan for retirement. Kids can get student loans, but there's no such thing as a retirement loan.
   
   
2. Education funds are not always the best way. Typical education savings plans may have drawbacks, such as: Limited investment options; difficulty predicting future tax benefits, and financial aid considerations (saving money in your child's name may hurt their chances of getting financial aid..).
   
   
3. Students should invest in their own education. Every year a number of freshmen trek off to college on their parents' hard saved money, only to spend more time the first few semesters partying than studying. Would they crack the books more if they were paying the bill?
   
   
4. Education doesn't have to cost as much as we're told. One college can easily cost twice as much as another, but is it worth it? Not necessarily, according to Kiplinger's annual college values report. The best education is not always the most expensive.
   
   
5. You may find it easier to pay for college when the time comes. The early years of raising children can be the most financially challenging. There's a high probability the family will have more disposable income when the kids are older, especially if both parents plan to work full time.
   
   
6. College is not the only route to success.

6 reasons not to save for kids' college - MSN Money

Those 6 points are a bunch of baloney...seriously people don't go to college JUST for success. Education is important that why she also went to college otherwise she would have chosen to stay home. Nobody is asking anybody to use their retirement money for educating their kids. I would set up a college fund for my children to make their life easier.