Even if you don’t have kids yet, you’ve heard the scary numbers: the parents of an entering college freshmen this fall can expect to pay $161,000 for a four-year private college education and $121,000 for four years at an out-of-state public college. And the once bargain-basement priced in-state colleges don’t seem like such a steal anymore: in-state freshmen heading to the average four-year public college can expect to pay roughly $66,000 over the next four years.

All that being said, you still need to put your adult-self first and save for your retirement before you save for college. Here’s why:

1. You can’t borrow for retirement. The average college student graduates with $23,000 in student loans. Daunting? Perhaps. But when you consider that 63 percent of households headed by someone 55 or older have debt, and the average amount of debt among that group is more than $70,000, it’s clear that retirees need to have cash to pay the bills well into their retirement years. For that reason, it’s essential to save for retirement first.
2. Take advantage of tax-favored plans. Securing your own future means you won’t be financially dependent on your children down the road, so it’s one of the best things you can do for them. Most experts say you’ll need 70 to 80 percent of your pre-retirement income to retire comfortably. Use the Social Security Quick Calculator at SSA.gov to estimate how much support you’ll get from Social Security benefits after you retire. It’s up to you to save the rest. If your employer offers a 401(k) plan with a match, passing it up is the same as turning down free money. The most you can put in a 401(k) is $16,500. Another option to explore: a Roth Individual Retirement Account (IRA). To contribute the maximum ($5,000) you need to make less than $105,000 as a single or less than $166,000 as a married couple. Above those earning amounts, you are still eligible to contribute, on a sliding scale, up to the maximum incomes of $120,000 for singles and $177,000 for couples. Check out choosetosave.org for all sorts of saving strategies.
3. Eliminate debt and assemble a safety net. It doesn’t make sense to be losing money on high-credit debt payments—especially if you’re paying rates close to the national average of 16 percent. Try to make paying down your high-rate debt a priority, along with building up an emergency fund of 3 to 6 months’ worth of expenses. These steps are essential to get your own financial life in order.
4. Open a 529 plan. Now that your basics are covered, it’s time to start saving for college. State-sponsored 529 savings plans can be excellent ways to invest money in a tax-free way for college. There are many factors you’ll want to consider including whether you stick with your own state’s plan and what type of investments you’ll choose. Explore your options for college savings at savingforcollege.com.
5. Maximize financial aid. The amount of financial aid for which your child will be eligible is decided based on a complex analysis of your income and assets as well as your child’s, so it’s important to start strategizing early. Check out Kalman Chany’s Paying for College Without Going Broke for tips, and be sure to familiarize yourself with the specific aid formula used by the institution(s) your child hopes to attend. Withdrawing money from an IRA, for example, the year you apply for financial aid my reduce the amount of aid you get. Make sure you know the rules.