Top Financial Mistakes Made by Parents

Posted by Chris O'Sullivan


Saving for college is often a priority for parents -- as it should be. But saving for school doesn't give moms and dads license to neglect the rest of their financial goals, advisers say.

According to AllianceBernstein Investment's "College Savings Crunch," a recent report that measured college saving trends, 70% of families surveyed don't have a plan that takes into account all of their financial goals. AllianceBernstein is a global asset-management firm based in New York.

Melissa Osuch has seen first-hand proof of those findings.

"In talking to fellow moms and fellow parents, I realized they had no idea what their priorities should be and where they should start. A lot of times they do nothing," said Osuch, a Glenview-based financial planner and educator with Strategic Advisors of Illinois. When they do take action, "they focus so much on college planning that they completely ignore retirement planning."

And the immediate, everyday needs and desires of their families often get more attention than college saving. The AllianceBernstein survey found that of families intending to fund at least part of their children's education, 58% spent more on eating out or ordering take-out food than saving for college in the past year, while 49% spent more on vacations.

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