Reasons to Save and Not to Save for College

Today's post is the third of our saving for college series. If you've missed any of the previous posts, here they are.

• Ten things to do before saving for college
• Retire First, College Later
• Reasons to Save and Not to Save for College
• 529 Plans Debunked
• Five ways to pay for college if you haven't saved

Reasons to Save and Not to Save for College

Saving for college is a very personal thing. It is tied closely to the goals you've set for yourself and the goals of your kids. With that in mind, here are a few reasons to save and a few reasons not to save for your kids' educations.

Four Reasons to Save for College

1. The median income for someone with a bachelor's degree is double that of someone with only a high school diplima. A recent study also found that the unemployment rate for those with a bachelor's degree is 1/3 that of those with only a high school diploma.
2. Happiness has a highly positive correlation to level of education. Studies have shown that those with graduate degrees tend to rate themselves happier than those who have limited or no college education.
3. Some kids need roadblocks removed to help them go to school. A friend of mine has a son who is very motivated and would have gone to school without help. He has another son who has very little scholastic motivation and needs the extra push. He chose to pay more for the second son to remove a reason / excuse not to attend college.
4. You have a goal to help your kids get an education. Some people value education enough to put it on their life goals list. I have a goal to help all four of our kids get a bachelor's degree. The help we'll offer will range from giving them the opportunity to live at home during college to a lot of encouragement and some tuition assistance. The motive is to help my kids have an education that creates options during their life and to limit need for ongoing economic help as adults.

Four Reasons Not to Save for College

1. You can't borrow for retirement, your kids can borrow for education. Saving for education over retirement is fiscally irresponsible. Your kids will end up helping you in retirement, which may set them back more than paying for their own education.
2. Your kids might appreciate their education more if they earn it themselves. My parents encouraged college from when I was very young. They always talked about where, not if I would go to college. They expected me to earn it and I value it deeply because I worked for it.
3. You can't predict how much your kids will need for education. They may earn scholarships or qualify for grants. Most college savings plans penalize withdrawals that are not for qualified educational expenses.
4. You might be in a position to pay as you go when your kids start college. Your income may have risen or you may be completely out of debt. If this is your preferred approach, then make sure you're working a plan to get there.

What are some of the reasons you have or haven't chosen to save for college?