Put Your Mask on First

Put Your Mask on First

I’ve had a handful of flights recently that have got me thinking.  No, not about flying, but about finances (go figure right these are the perils of the biz).  You see if you’ve flown any time in the past, well ever, you undoubtedly have heard the pre-flight routine the flight attendants go through.  Most of us, me included, don’t even pay much attention to these wonderful people.  Which of course is ironic, since the entire routine is about saving our lives.

Flight Attendant Instructions

In any event, they run through their instructions such as keeping your tray tables up and staying buckled.  They talk about how your seat can be used as a flotation device, although I’m still not sure how that works.  Then they get to the grand finale, in case of an emergency when the face masks deploy, please put your face mask on before helping others.

At first, this seems counterintuitive.  Why would I not rush to put my child’s mask on before myself?  They are my child, and I would take a bullet for them, so why now put my needs over theirs?  The answer of course, albeit at first counterintuitive, is that you can’t possibly help anyone if you pass out due to lack of oxygen first.  Additionally, it is very unlikely your little child will be able to assist you in putting on your mask if you are unconscious.

Retirement Savings Vs Paying for College

Now, how can this possibly be relevant to financial planning you ask?  First, I told you it is a sickness and a peril of the job that everything makes you think about financial planning.  Second, the parallel I see is the dilemma of saving for your kid’s college over your own retirement.  This to me is the exact equivalent of putting on your face mask before helping others. 

You see most of us love our children more than anything else on this glorious planet.  We would beg, borrow, and steal to ensure their happiness.  However, it is important to heed my advice here when I tell you that when it comes to saving for the future it is extremely important to prioritize your financial future, before addressing your children’s college. 

You Can’t Borrow For Retirement

Again, it may seem counterintuitive but allow me to make my case and point.  For starters, the obvious first thought that comes to mind is you can borrow money for college, but you can’t borrow for retirement.  Although rather trite, the saying is quite accurate.  If your child gets to college and you nor they can’t quite afford it there are options. 

1. They can get a job.
2. They can get a loan.
3. You might be in a better financial situation to help them in the future.
4. There are scholarships and grants they can apply for.

These are many of the options that are available when it comes to affording college.  The point is that there are real options and as we sit here today there is approximately 1.74 TRILLION (WITH A T) in outstanding student debt in this country.  For those that are unaware of how much a trillion dollars?  If you measure in $1 bills it would equate to 67,866 miles or the equivalent of wrapping around the earth almost 2.75 times!  This means that your child, if stuck with taking student debt, would be in the “norm”.  

Now if we turn our attention towards retirement, a few things become extremely clear.  For starters, there is no borrowing for retirement.  When we get to those pearly retirement gates you are stuck with whatever you’ve accumulated over the past 40-plus years of working.   There are also no loans or retirement grants that make this lifestyle more affordable.  Thus, what are your options if you get to retirement, and you don’t have enough money to afford your current lifestyle?

1. Keep on working.
2. Live on less.
3. Ask your kids for help.

I’ll tell you what if you weren’t sold before I started this article how about now?  Compare the options of college vs. retirement. 

Would you rather tell your kid to get a job, or you work 5 more years of your life?  Would you rather have your kid get a loan and pay for over 30 years, maybe even help them out, or find a way to not enjoy your golden years as much?  You rather move in with your kids or ask them for money at retirement, or them have a little debt they are managing?  I don’t know about you, but when it is spelled out so blatantly like this, I sure as heck know what my preferences would be.

Now, I am not suggesting to not help your children as much as possible.  However, the key word there is as possible.  By this I mean you shouldn’t forgo your future financial health for something your children, and you, have options for.  I highly suggest prioritizing your future financial health and helping others with whatever you are able to after that.  Remember, it isn’t always our choice to keep on working, and living on less after 40-plus years is a tough pill to swallow.  However, the toughest pill to swallow might just be knocking on your children’s door later in life telling them mom and dad are moving in!

Put those masks on

There are plenty of options that allow us to have our cake and eat it too.  All I’m suggesting is to put your face mask on first.  Make sure your finances are in order and on the right track.  Make sure you know the consequences of your decisions and are going with eyes wide open.  Otherwise, you might be rudely awakened later in life when sadly the options are quite grim.

Until next time stay wealthy, healthy, and happy.