Jill on Money with Jill Schlesinger Saving for Retirement vs College Funding
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Jun 23, 2025 This discussion tackles the delicate balance between saving for retirement and funding a child's college education. They explore strategies for boosting retirement contributions while managing family expenses, highlighting the importance of 529 plans for education funding. Humor adds levity as they navigate the complexities of financial aid and debt management. Additionally, there's a focus on effective estate planning and ensuring families are prepared for future financial changes, making the often daunting tasks of saving feel more manageable.
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Debt Payoff Journey
- Chris and his wife managed to pay off $60,000 to $70,000 of credit card and personal loan debt after struggling through job loss and daycare expenses.
- They dug out of this financial hole by aggressively paying down debt while managing a significant lifestyle shift with two children.
Boost Retirement, Build Emergency Fund
- Immediately increase both 401(k) contributions to 15% to capture retirement savings momentum.
- Put surplus cash flow into savings to rebuild an emergency fund covering 6 to 12 months of expenses.
Inheritance Allocation Strategy
- Allocate a portion of inheritance funds to 529 college savings plans for each child, balancing scholarship uncertainty with planning.
- Use the remaining inheritance for a taxable brokerage account to supplement retirement savings and maintain financial flexibility.