As a family, should we be saving or paying off our debt?
Whether you should be saving or paying off debt depends on what you’re saving for. For example, putting money away for your kid’s college fund is a noble endeavor but if you’re still paying off your own student loans (with interest), you may consider putting the money toward your loans first. The less interest you’re paying every month, the more money you can put toward savings. Simple enough, but often difficult to put into perspective with competing priorities.
However, no matter what type of debt you have, you need to have enough saved to keep your family secure in the event of an emergency. Having two to three months’ salary tucked away for anything from a health scare to replacing a vehicle is crucial. Once you’ve established an emergency fund, you can feel better about sending any extra money toward debt.