You’re probably thinking ‘The Travelin Diva’ has lost her mind, but it’s totally the opposite. I want us all to be debt free so we can travel the world stress free and take advantage of all the tips, deals and fabulous destinations that we share here on BMWK. Before you start saving for that trip to Martinique there are a few things to do first.
Recently I was watching Suze Orman’s latest financial special and a young African-American Mother asked what debt should she eliminate first and/or should she start saving for her daughter’s college education. Suze Orman is one of Oprah’s money advisor’s and America’s favorite money guru, her answer totally shocked me. She advised the young Mother to erase her own student loan debt first and then credit card debt before even thinking about contributing to/starting her daughter’s college fund.
Here are the reasons why she suggested this…
If there are money problems in the family/household, children can sense that and it adds more tension/stress to the family. Also, student loan debt is the most dangerous kind of debt in existence. Why? Even in deferment it continues to grow accruing interest and under no circumstance can it be discharged in bankruptcy. Student loan companies have the right to garnish your wages and even your social security payments in retirement. So, if you have student loan debt, Suze advises that you work very hard to totally eliminate that debt first then tackle the credit cards. Then and only then should you start your child/children’s college fund and that dream vacation fund.
I firmly believe that the best gift and start in adult life that you can give your child/children is a debt free college education along with a fabulous graduation day getaway (but that’s another article…lol). First give the gift to yourself and eliminate your own student loan debt and credit card debt then travel the world. Imagine going on a dream vacation and not having any major bills to think about when you return home. Now…that’s a fabulous vacation!
Suze Orman gave a lot of fabulous advice on insurance, 401k’s, 8-month emergency fund, renting v. owning and more during this show. The special was entitled ‘Suze Orman: Financial Solutions.’
BMWK Family what do you think, should you wait to start saving for your children’s college fund and skip the elaborate family vacations?