As a parent, your first priority is always the well being of your child. But, what do you do when you need to save for retirement but you don’t have spare change because your child is draining you financially? It can be hard to consider your future when you need to look out for your child, but here are some tips to make it easier for you.
1. Lean on Tough Parenting When You Need Too
Most often parents lead by example, guiding their kids to making proper choices and trying to educate them on their future adult lives. However, there are different times in every child’s life where they drive their parents crazy and cost them money. Elementary aged children are always begging for toys and teenagers want cars, late curfews, and credit cards. Often kids who get everything handed to them stay more dependent on their parents for longer which sure can be expensive. Coddling kids usually will lead to less responsibility and more poor choices in their personal lives. Young adults who don’t have to fend for themselves often find destructive outlets with all their free time such as drugs and alcohol. In cases like this, adding safety nets like a device from Low Cost Interlock or setting up a drug monitoring program can help them grow up but potentially save you thousands on a dui or the high cost of rehabilitation.
2. Start Investing For The Future
Whether you have kids or not, you should always invest for the future, but especially if you do have kids, they are expensive!. Accruing savings over time is the only way to plan for retirement like investing in stocks and having retirement accounts like an IRA. Some people forsake this to give extra money to their children but don’t fall into that trap. Remember that once you retire, you won’t have much of a chance to make money like you can during your younger and career years, most Americans retire and live off a fixed income for the rest of their lives. Each time you give your kid money for groceries, rent, a car payment, or even something like a vacation it can eat into your potential savings. Obviously, most parents help their adult children out when they need to but make sure to think of yourself and your future too!
3. Save! Save! Save!
One of the smartest things you can do is save. Even if you can only save $5 a day, it will help you significantly in the future. Create a savings account that can’t be touched until you retire and you’ll find yourself very happy once you do retire. Save the money for emergencies during retirement. You will thank yourself in the future. Another option is creating a savings account directly for your child. If your child is making bad decisions, invest in their future. If you do not feel comfortable cutting them completely off, put money aside for them without them knowing. This will help them in the future and it would mean a lot to them, knowing that you invested in their future when they weren’t behaving in an acceptable way.
Regardless of your situation, there are ways to save and secure yourself during retirement. Do not let your children define the lifestyle you can have by soaking up all of your money in the moment. Think about the future and everyone will benefit from it.