So once adults reach a certain age, retirement becomes more and more of a priority. So this means that one has to move money here, allocate money there and perhaps make some changes. You know, the usual that occurs when a major life change is on the horizon. But goals like this sometimes clash with our priorities as a parent. There are obligations that have to be honored such as, paying tuition, buying clothes and gifts and cosigning or putting a down payment on your daughter or son’s new car. Right? Probably.
Mellody Hobson says that parents are actually giving twice as much money to their adult kids than they are actually contributing to retirement. (Source: Black America Web, Mellody Hobson) So what does this mean? Personally, I feel that it’s ok to help your children, but there either needs to be a cut-off or some kind of limit to how parents display financial genorosity to their children. I too, have borrowed money from my parents but I make it a point to pay it back because I care about their retirement. ‘
With rising educational costs (and cost of living rising altogether), being frugal as a parent becomes more and more challenging. Well it’s Money Monday’s so that means that it’s time for some financial advice from Mellody! Click the link below for the full story!