Help your kids, help yourself
There’s nothing like a parent’s pride when a child graduates from college or university. Coupled with this joy, you now start to think about how your child will get on their financial feet, and how this will affect your own personal retirement savings.
Today’s graduates often face a long path to independence. Some children may move back home and parents may need to help their child with expenses, meaning that you might want to revisit your savings plan to ensure both you and your child are on track. Here are a few suggested approaches.
Start saving early To avoid a financial crunch later, and to increase your child’s
Today’s graduates often face a long path to independence
future possibilities, consider a registered education savings plan ( RESP), which helps parents, family and friends save towards a child’s future post- secondary education. Even if you can only save a bit at a time, it really adds up.
Teach money smarts Teach your kids about money at a young age, including the benefits of saving, setting a budget and helping them create good spending habits. Make a plan to meet multiple goals — Expect the unexpected As part of your household finances, create an emergency fund for any sudden need ( such as if your child needs a helping hand after graduating).
Don’t put your needs aside While parents often sacrifice for a child, don’t delay your own retirement saving. And if unexpected costs arise, like the need to support a family member, meet with your financial advisor to revise your financial plan. That way, you can balance new priorities and your retirement savings plan.