Many parents with children entering their teens are now facing a dilemma- to pay for college or to save for retirement. College expenses continue to spiral higher while fewer Government dollars are available to go around. Meanwhile, retirement costs continue to rise as unemployment soars and the stock markets decline. The ideal solution appears to be using all the loans you can get for students and covering the rest while saving enough to retire in the future. After all, retirement dollars can compound in the future while student loans simply incur a small interest charge every month.

From CNN Personal Finance:
With three teenage children, Lorri and Bruce Wilke of Danville, Calif. are caught in the perfect parental spending storm. Between laptops, cell phones and clothes, the Wilkes seem to outgrow their budget the way kids outgrow shoes. "You just feel like you're writing check after check after check," says Lorri. With Leah, 17, heading to college in the fall - and Dana, 15, and Carl, 13, soon to follow - the financial pressures are only going to grow. The Wilkes have set up custodial accounts for each of their kids, but the $16,000 in Leah's name won't cover a year of expenses at the University of California schools she hopes to attend. Most of the couple's net worth is tied up in their $1.2 million home, so they must find a way to help their children pay for school without jeopardizing retirement.