Adult Children Living With You Can Hurt Your Retirement Plans

People who plan for retirement still have a lot of challenges to face. One of them might come closer to heart. It may involve their kids. In the type of economy that country has been through, it has become increasingly common for some adult children to decide living back with their parents to save. Although it may be automatic for parents to help out a child in need, the gesture may not always end up doing both parties any good. The longer adults stay with their parents the more the issues become ever more serious. The new set up can sometimes have an effect on the parent’s retirement plans. Money that they should have set aside for retirement ends up helping out their child in need. Here are some valuable advice for would-be retirees who may still have their working-age kids still living under their roof.

Set a limit to how much you can provide help.

Even though most parents cannot help but provide some financial assistance to their child in need, there should be a limit. Doling handouts to their child as a way to help out does not always work the way it is expected. The expectation is for some kids to use the help in order to get back up on their feet and become independent again. But sometimes the reality is that some children can get too comfortable with the set up that they no longer even try to change their situation. This can be detrimental to any would-be retiree’s plans for retirement.

One way to prevent this from happening is by setting a certain limit to how much and how long you can provide some assistance to your child. That way, you can still help your working-age child when needed. Calculate just how much you can help your children without affecting your own retirement future. If you need to borrow money just to help out your child, then you are doing it wrong already

Encourage independent living.

Even while you are helping your child by letting him or her live with you, you should still continue to promote independence to them. Encourage them to take part-time jobs if they still cannot get more permanent ones to share taking care of the household expenses. Let them also help with the groceries and other expenses that will certainly increase once they start living with you.

Get your kids to help around the house.

Teach your kids to become more responsible even if they live with you. If they do not have the means to help you with the household expenses yet, you can have them help with chores around the house. You can try to discuss alternative ways in which they could help such as cooking meals, cleaning the house or help taking out the trash. This way they can still contribute their share and not just be totally dependent on you. You can try to be strict about it so that they will know that staying with you at home comes with certain responsibilities.

 

Posted by Ardent Editor on Jun 30 2017 in Financial Planning

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