In Flying And In Finance, Put Your Mask On First

If you've ever flown, you've likely heard the pre-flight routine from flight attendants where they instruct you to place your own oxygen mask before assisting another person. Most passengers don’t pay much attention to these instructions, even though they're crucial for our safety.

They cover basics like keeping tray tables up and staying buckled. They explain how your seat can be used as a flotation device, although the mechanics of that still puzzle many. Then they emphasize the key point: in case of an emergency, put your mask on before assisting others.

Initially, this seems counterintuitive. Why wouldn’t one help their child first? The answer is simple: you can’t help anyone if you’re unconscious due to lack of oxygen. Plus, it's unlikely a child could assist you in such a situation.

Putting Your Mask On In Your Finances

This scenario mirrors a common financial dilemma: saving for a child’s college education versus saving for one's own retirement. It's akin to putting on one's oxygen mask first.

While parents prioritize their children's well-being, it's important to prioritize your own financial future over a child's college fund even though it may not feel that way.

Money can be borrowed for college, but not for retirement . If a child can't afford college, they can get a job, a loan, or seek scholarships. However, in retirement , one is limited to what they've saved over their working years.

In retirement, options are limited: keep working, live on less, or rely on assistance from family. The contrast between college and retirement options is stark.

It's essential to prioritize future financial health. While helping children is important, it shouldn't come at the expense of retirement savings. Make informed decisions about finances, helping to ensure your preparedness for the future.

In summary, prioritize financial well-being. Make sure your finances are in order before assisting others. Being financially prepared helps to ensure that you have options and could avoid unpleasant surprises later in life.

By Andrew Rosen, Contributor