Parents tend to want to help their children out regardless of age or time in life. Always helping out can delay retirement though by years or eliminate it all together depending on levels of generosity. Perhaps offering to pay for college of grandchildren should be held off on as education costs continue to rise. Planning out acts of kindness in a financial manner can help avoid any issues. Possibly not taking an extra vacation for the year can make up for flying the children into town for the holidays. The following are tips to help out the kids financially without compromising retirement.
Putting Money Aside Monthly In Stocks And Bonds
Letting money sit in a savings account for the kids is not making the best usage of the money. Allowing this money to grow via stocks and bonds can make a huge difference by allowing the money to earn rather than sit there. Many experts diversifying investments in order to be as financially secure as possible. As a person ages it is imperative for them to start thinking about moving investments into conservative options due to having a limited amount of income left to make during their professional lives. Investment properties can be great to earn as well as allow a recent grad to live in after receiving their first job offer.
Prepaid College Programs
Prepaid college programs do exist and can make an immense difference when it comes time for a teen to go off to college. Some of these programs only cover a percentage of costs but for an in-state school this will be a healthy percentage. The best thing parents can do is help guide their college student to make great decisions. Majoring in art history and accruing a 6 figure debt might not be the wisest move. Working during college can make an immense difference by allowing a student to actively pay off their debt.
Collect Rent From Adult Children At Home … Then Give It Back When They Move
A common practice that has been given some media attention is parents collecting rent from adult children staying at home. Some of these parents save this money then gift it to their child when it is time for a down payment on a home or place of their own. This can also teach these children how to live on less as many times moving back home with parents is a sign of mismanagement of finances.
Give Kids And Adults The Opportunity To Help Out For Cash
Small errands that are inconvenient or there is not time for can be outsourced to both teens, children, and adults. Expenses like having to care for an elderly family member can be perfect for a recent grad looking to live rent free as well as earn some cash while job searching. Think about paying a family member to do something if possible first as extra cash throughout the years for something that was going to be an expense anyway is a great form of support. Hiring family members to work for the family business needs to be done with care as they need to perform to expectations as no business wants to be known for reckless nepotism.
Get The Proper Insurance In Case Of Accidents At One Of Your Properties
A terrible thing that can happen when your child is living at one of your properties is have someone injured there. This can compromise you financially in a major way depending on the severity of the injury. This is an example of a case that great law firms can win. Attorney Keith Williams was selected on Mid South Super Lawyers list as he represents clients in large cases in the best fashion possible. You do not want a legal juggernaut like this dealing with your lawyer but rather the lawyers for your insurance company. Get the proper insurance on the home and protect yourself if anything were to happen.
Helping support children financially throughout their lives is possible but has to be done with care. Nobody wants to be working part-time at a certain age so keep generosity within specific limits.