Yours and your kids' financial literacy is a key component in achieving your goals.
More and more parents are contributing to their adult children’s finances. A recent Nerd Wallet study on the life-time cost of supporting adult children revealed that 80% of parents are subsidizing, or have subsidized, at least a portion of their adult children’s expenses. Further, covering these expenses may be costing parents close to a quarter-million dollars in retirement saving. YIKES!!
Of course, we want to support our children and give them a hand up in the world. It’s tough out there! However, doing so shouldn’t compromise our long term goals and retiring with dignity. So rather than spending money on fleeting “stuff” why not support your children's transition into a more secure and happy adulthood by building their own financial capacity?
It all starts with budgeting! The younger your kids are when they start, the more impact it will have over the long run for both of you. Help your kids get started with budgeting as soon as they have an income. The sooner your kids can manage their own finances, the sooner they'll stop relying on yours, freeing up more of your income to focus on your long-term sustainability and making your dreams a reality.
Here are a couple of resources to get started:
Budgeting tips from the Canadian Bankers’ Association
RBC Setting Kids Up For Success Tools and Resources
Managing Your Money: Why it's Important to Start Young