There is no "Financial Aid" for Retirement
Debra Fleming, Editor

One of the most difficult choices you may make is the decision to save for your retirement rather than your child's education. Although both are important, paying my way through college provided me a great life lesson in money and budgeting. Nothing makes you grow up faster than accepting financial responsibility. And young adults who understand money and how to use it wisely will be the ones who plan well for their own retirements. Besides, there are other ways to assist your child in paying for college:

Financial Aid. As far as a college is concerned, roughly 3-6% of your assets and 22-47% of your income are considered available for your child’s college expenses (and the numbers for your child’s assets are even higher). Eligibility for financial aid is greatly impacted by your actions – if you put down a large sum of money the first year, a college will often assume that you can do the same for each year following, and will refuse to give additional aid to your student. Fill out the Free Application for Federal Student Aid (FAFSA), which determines your student’s eligibility for federal student financial aid.

Scholarships. Have your child apply for anything and everything they are eligible for, including scholarships offered by the school they will be attending. The vast majority of scholarships have no application fee – all it takes to apply is time and determination. Online scholarship resources such as fastweb.com and scholarship.com are a great help.

Working part-time. Have your student look into getting a part-time job either on or off campus. Many colleges have work-study programs and career counseling centers that assist students in finding both part-time and full-time employment.

If you're worried about your child being burdened with debt so early in life, you can always pay off their college expenses and loans as a graduation present. The important thing is to investigate your options early.