Finding a balance between retirement savings and college savings represents a challenge many families experience. If you feel overwhelmed, you’re not alone. The struggle is especially felt when parents consider whether to withdraw from their retirement savings to help pay for their children’s college expenses. Withdrawing from retirement savings or taking a loan against a retirement account reduces your total …

Minimize college borrowing with an active savings plan for your children. Saving a dollar today is better than borrowing one tomorrow. This simple example shows why: Saving: Saving $100 per month with a 4% rate of return compounded annually over 18 years will provide $31,336 to pay for college. Borrowing: At the start of college, let’s assume a student borrows …