Raising children is very expensive, and just because they reach the age of 18, doesn’t mean your responsibility ends. On the contrary, most parents continue to financially support their adult children in some way. Some parents want to ease their children’s financial burdens or to fund a business venture. Even retired parents find ways to assist their adult kids. If you are thinking about how you can best help your kids even if you are retired, we share a few common ways you can help below.
Set up College Funds
First, you could help to pay for college tuition. Going to college is expensive and it isn’t getting any cheaper. On top of that, professional jobs require a college degree, with even more requiring advanced degrees. If you want to help ease the financial burden of student loans, you can help out with their college tuition. This way, they won’t be graduating with a degree and a mountain of debt to repay.
There are several ways you can do this. You can open a separate savings account, then withdraw the money when your children or grandchildren are ready for it. You could also place the money in a trust, which would allow your child to access it when they turn 18. Finally, you could simply have the tuition payments directed to you and pay for the semesters as they come up. Whichever method you choose will depend on your own financial situation and how old your child is.
Help Then Become Homeowners
The other large payment many people have to deal with is their mortgage. Mortgage payments are large and last a very long time. If you want to help your children with a larger down payment for their new home, it will decrease the amount of the mortgage they need. If you son or daughter already has a home, helping them to pay off their mortgage sooner is very beneficial. While every dollar helps, you need to remember to keep your own future in mind. Talk to your kids about how much help they may need, then see if you can make it work.
Funding a New Business
If your child wants to start their own business, they may need additional funds to get it going. Starting a new business is expensive, if they don’t have enough money, they may not be able to do all the things they need to which could spell failure. If you believe in your child and their business plan, you should consider assisting them financially to get started.
Before you do, make sure the business plan is a solid one. While you want to help your kids, you don’t want to throw your money away on a bad idea. If you can, have an outside financial advisor review their business plan and give your their opinion if it is a wise investment. If not, consider other ways that you can help your child, or recommend ways they can improve their business model, so that you can help with funding.
Lastly, if you have grandchildren, you can always help with child care. Sending a child to daycare is expensive, and if your kids can skip it even once or twice a week by sending their kids to you, that will really add up in the long run. Not only do you get to help ease the financial burden of child care, but you get to spend time with your grandchildren as well.
Before you embark on this, make sure your home is safe and baby proofed. Have some fun things for the kids to do, as well as a safe play area with their favorite toys. You don’t have to turn your home into a daycare, but some preparation is a good idea.
How to Find Additional Funds
Now, maybe you want to help your children, but you aren’t sure you can afford it. If so, there are some ways that you can earn some additional funds during retirement. For starters, you could get a part-time job. Another option is downsizing your home which would lower your housing costs, especially your taxes. You could also talk to reverse mortgage lenders. You can use this reverse mortgage lender locater to get started. There are many options, you just need to consider what’s right for you.
Helping Them Succeed
Being able to help your adult kids out is a great feeling. Even though they’ve left the nest (or are about to), it still feels good when you can help make their lives a little easier. Hopefully, the tips above provided you with some good ideas about how best to help your kids out even during your retirement.