Posted: 04/22/20024
You want peace of mind you are prepared for retirement, and with that may also come the desire to know your adult children are also positioned for financial success. The fact is, being financially dependent isn’t good for either the adult child or the parents.
What can you do to set them on a path to financial independence that doesn’t require your financial support through adulthood? A good place to start is by providing guidance, instilling valuable habits, and sharing a commitment to their long-term success.
Guidance, not financial support
It’s a delicate balance between providing guidance to your adult children and financially supporting them. It’s important to allow them to learn from experience and encourage them to make their financial decisions while being available as a resource for guidance and advice when needed. You can help them understand the value of living within their means and making conscious financial choices.
Plan for today and tomorrow
One of the best things you can do for your adult children is to help them to understand the value of planning. In the short term, help them create a budget and a system to track their expenses and manage debt, while emphasizing the importance of saving and setting realistic savings goals.
And while the future seems a long way away, we all know that it isn’t. It is essential to emphasize the importance of a comprehensive financial plan that outlines their financial goals, timelines and the strategies for achieving them. Yes, including retirement.
Lead by example
Discuss – and demonstrate – how long-term financial planning can benefit them as they embark on their journey of financial independence as an adult. Encourage them to consult with financial planning professionals to ensure their plan aligns with their goals and aspirations and to understand the impact of taxes and how to invest wisely. Keep in mind, the goal is to equip them with the skills and knowledge they need to thrive while providing you the freedom to focus on enjoying your retirement.
At PDS Planning, we understand that every financial decision has a personal impact—on your future, your family, and your legacy. We are here to help you navigate complex emotional situations with rational, reasoned, and empathetic advice.
Rather than simply providing options or strategies, we help you choose the right next step for your financial future. And as a flat, fixed fee advisor, our recommendations will never be influenced by anything other than serving your best interests.
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