Many parents are having to decide whether to save for their own retirement or contribute to their child's college education as tuition costs increase and many retirement funds have been rocked by the financial crisis.
A study conducted by the Allianz Life of North America that measures the economic impact on college savings discovered that one out of four people are decreasing or completely stopping their contributions toward their child's education, according to Education News.
In addition to that, 44 percent haven't even started saving for their child's college education, and only 15 percent have cut spending on other goods and services to continue saving and paying for their children's college education, according to the study.
"Retirement and college savings often draw from the same bucket of available funds, and people have a hard choice to make," Katie Libbe, vice president of consumer insights at Allianz Life, told Education News. "Our research shows that lower income households feel paying for their children's education takes priority over saving for their own retirement."
The study also shows that 39 percent of men placed saving for their own retirement ahead of contributing to their child's college education, compared to 27 percent of women.
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