College or Collagen

By: Julia Salazar

—

August 2, 2005

For me, a mom in her forties, it’s a balancing act to save enough money for my retirement as well as my twins’ college fund. I know the financial experts say to let the kids fend for themselves because they’ll find the resources to do it if they really want it. Character development, it’s called.

But I’d like my children to have the resources to go to the university of their choice. Right after they were born, I opened Section 529 college funds for both of them at a financial institution. Every quarter, I open their statements and check their investment portfolio summary. They’re five now and so far they’ve earned an average of 5.59% a year (tax-free) on their money.

But between saving for their college and my retirement, there isn’t anything leftover for elaborate vacations or special splurges on myself. While my childless friends are blowing their wads on all sorts of exotic trips, our last getaway was to a reasonable hotel 20 miles away.

I spend a little money on myself — an occasional mani/pedi or a yearly massage. But forget the big stuff like collagen injections; I’m going to have to live with my wrinkles and a few other signs of age if I want financial peace of mind.

I wish I’d started saving earlier in my life but I was in denial that I would have to stop working someday. And I guess somewhere in the back of my mind I was counting on social security. Who knows now whether that will still be around in five years, let alone twenty-five.

Most of the time, I feel good knowing I’m building something for my children that will give them options. But occasionally, I fantasize about spending some of their college fund money on a week or two at a private spa in Bali. This usually happens when the girls have drawn all over on the walls. On those days, I figure I’m already paying through the nose for their preschool and giving them a head start in life. After all, they’ve learned to count.

When the time comes, I hope they’ll choose a career they love and appreciate the effort that went into making that possible. I pray that they’ll learn not just how to make money but how to manage it, and that their most important financial asset is their capacity to earn. But most of all, I’m hoping they get me collagen injections for my 60th birthday.

Source

:

MP

---