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Our oldest child is age 55, – three children ages 14 and 12 (twins),
our second is age 54 – three children ages 14, 13 and 10,
our third age 51 – three children 18,17 and 13,
and our fourth age 50 – two children ages 20 and 17
All ages are rounded.
Look at these ages and what comes to mind, college, retirement? Pretty sure not retirement any time soon. This is what I ponder when I read about FIRE or even early retirement before age 60. Our children will be near or over age 60 when our grandchildren finish college. I look at these ages and wonder how they will ever retire.
Needless to say none of our children has a pension and two don’t have a 401k, two are working two jobs.
All this is why we fund 529 plans and help our children occasionally and why I am keen to leave the largest legacy we can. Once again I find my thinking out of the norm. An article on MarketWatch says boomers intend to spend their money and leaving an inheritance is not a priority.
This example is similar to the reality for many families. The trend of people having children at older ages is well-documented in the United States. However, according to the Census Bureau the average family size in 2022 was 3.13, but even one or two children with these age scenarios may have a significant impact on finances, especially retirement.
I was 45 when our oldest child entered college and they were all finished ten years later. I suspect there are people who don’t see their children’s college as an obligatory expense. That is a choice.
In any case, saving for retirement should be the priority, but it’s still a tough road for people who start families later in life.
I’m not sure I agree that those who start families later necessarily have more of a problem saving for retirement. “Older parents” have the opportunity to save more during their 20s and 30s and, therefore, reap the benefit of compounding. Also, by their 50s, they should be better able to afford college expenses.
Our kids were born when my husband and I were in our 20s. Those years weren’t easy financially. And in our 40s, we fully paid for Ivy League educations with no family help. Paying those tuitions really stretched our finances— in fact, I remember being proud we could save $100 a month! In our 50s, we helped with medical school and law school, not easy, but by then our salaries were higher.
Many families in the U.S. find themselves significantly squeezed between the rising costs of college and the need to save for retirement. This is a common financial challenge. Heck, data show many Americans can’t or aren’t saving adequately for their retirement let alone with college costs.
Very few couples can pay for any college let alone Ivy League in their 40s although the net costs for Ivy League can sometimes be lower. Two of our grandchildren are going to a private liberal arts school in PA and the annual all in cost is a bit more than $80,000 each.
You seem to be modifying your argument from parents in their fifties to all parents having difficulty paying for college and saving for retirement. I agree if you’re making the case for all parents.
in our 40s, we gave little thought to retirement. (Definitely not HD types!!). At one point we even re-financed a car with over 100,000 miles to meet a tuition bill. The kids all lived in dorms, didn’t have cars, and worked summer jobs. It was absolutely paycheck to paycheck for us.
Is the $80,000 price you quoted the “sticker” price of the college or what your grandchildren are actually paying? These days the difference in those costs can be quite large.