How Some Kids Ruin Their Parent’s Retirement (and What You Can Do About It

Once you become a parent, your priorities change. They now become the center of your universe and will forever be your true love. You will feel obliged to care for them physically, mentally, and financially no matter how old they get. Raising kids is nowhere cheap. The sad thing is, money is much harder to earn and save these days.

Some people plan to age in place. Others like the idea of staying in a retirement home so that they can be with people of their own age. Whichever option you plan to choose, your kids can influence how your retirement years will look like.

These days, many parents fail to plan for their retirement. According to a report, only about 35% of Americans feel prepared for their senior years. If you now have kids or are planning to have some, here are a few ways they can influence your retirement.

Kids’ Debt = Parent’s Debt

Debts these days are only normal. Even if you can take home a considerable amount of salary each month, you will likely have a few credit cards. But since you now have a family, expenses will grow, and so will your debts.

For one, mortgages can be a necessity to have a stable roof over your head. The same goes for your car loan and other significant expenses. As your kids grow, their significant expenses can make you add more debts to your name.

Some parents are choosing Parent Plus Loans. They do this to help their kids pay for their college in full. As with all good things, good intentions alone are not enough to pay for the accumulated debt.

As much as possible, experts advise parents not to shoulder their kid’s tuition fees for colleges. There are student loans available that offer excellent perks and fees. Better yet, consider a college savings fund to avoid racking debt for their college.

Dealing with Boomerang Kids

Most parents can’t wait for their kids to visit them after their adult children moved out of the nest. But for some parents, they got more than what they wished for. These days, more adult kids are moving back into their parent’s homes.

Some decided to go home to take care of their aging parents. But we can’t say the same for more millennials. This is thanks to their current financial situation.

The pandemic, for instance, caused many people to lose their jobs. Instead of staying in their apartments while looking for another stable job, millennials are moving back home. This means their parents are now back to supporting them financially.

Some adult kids did not literally return to their parent’s home. But they are now receiving financial help from their parents. Still, this can cause an additional financial strain to the already stressed out Boomer.

If you plan on taking your kids back in, make sure to talk with them and lay down your conditions. If they can, they should help pay their share of the bills. They are also expected to follow your rules and help around the house.

Your kids should know their responsibilities if they plan to live in your home again. They should be considerate enough, and you will be with their needs. Discuss a sense of frugality and responsibilities so that both of you will know what to expect before they even move in.

Saving for retirement should be a priority. Even if you only have one child, he alone can impact your future. Choose to make the right decisions. Instill a sense of responsibility and frugality early on. This will help set him up for future financial success. In turn, you, too, can save enough for your senior years and live a more comfortable retirement.

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