How can I split my finances between saving for my kids' college education and paying off my own mortgage?
I'm a working mom in my 40s with two kids in high school. My husband and I are trying to save for their college education, but we're also struggling to pay off our own mortgage. We've been doing some research and trying to figure out the best way to split our finances between these two goals. We've been advised to prioritize paying off high-interest debt, but I'm not sure if that's the right approach for us. Should we focus on paying off the mortgage or saving for the kids' education first? And what are some strategies for splitting our finances in a way that makes sense for us?
1 Answer
I completely understand your dilemma, it's a tough one to navigate for sure. I think it's great that you and your husband are doing your research and trying to figure out what's best for your family. In my opinion, you should prioritize paying off your mortgage first. I know it might seem counterintuitive, but having a paid-off home can be a huge weight off your shoulders and free up a lot of money in your budget that you can then use to save for the kids' education.
That being said, it's also super important to make progress on saving for the kids' education. One strategy you could try is to aim to save a certain amount each month, and then use any extra money you have to put towards your mortgage or other high-interest debt. For example, if you can afford to save $500 a month for the kids' education, try to put that money in a college savings account or fund. If you have any extra money left over, use it to make extra payments on your mortgage. This way, you'll be making progress on both fronts.
As for prioritizing high-interest debt, it's definitely worth considering, but in this case, I think paying off the mortgage is a more pressing concern. However, if you have any other high-interest debt, such as credit card balances, it's a good idea to tackle those first. The key is to find a balance that works for you and your family, and to communicate openly with your husband about your goals and priorities.
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