You are independent in so many ways. Even if it is not given to you, you demand it. You want to choose the clothes you wear, the food you eat, the time you sleep, the company you work with, the mode of transport that’s most comfortable! And yet, when it comes to money, despite having secured a well-paying job, you don’t mind asking your parents for money.
In the little things, like going out for dinner, or buying clothes, you’ll never ask your parents- because you’re independent- but when it comes to paying for your education, or your car, or your wedding, your stand tends to soften.
Sure, you promise you will pay them back, and most of the time, you do, but sometimes they waive it off saying, “Oh, don’t worry, it’s a gift!” or “Give it to me when I need it!” and so, you end up not giving the money back.
But remember, every rupee they spend on you today is one less rupee available to spend on themselves.
Your parents may support your ambitions without ever questioning them but that doesn’t mean you shouldn’t think about their wellbeing in their twilight years.
As an increasing number of couples over the age of 45 are retiring or at least thinking about an early retirement, financial planning for older parents with young children is becoming tricky. This is because children’s education and careers are now coinciding with parents’ retirement plans. This is also because the average childbearing age has increased in the past few decades as more and more couples are choosing to not have kids as soon as they get married leading to more and more DINKs or Double Income No Kids families.
Related: Is your child your retirement plan?
Read on to learn some smart money moves to give your parents the financial freedom by taking control of your own finances.
Don’t forget your parents are growing old
Most people don’t discuss death and wills at the dinner table. How many people really plan for retirement in their 20s and 30s? However, age catches up with you without warning, and when it does you need to be prepared. Don’t forget old age is accompanied by problems: diseases, unexpected medical expenditures, faster wealth erosion, etc. As a family you need to sit down and ask each other the tough questions. By ignoring the problem, you can’t make it go away.
Know where you are before you start financial planning
Make a complete list of your incomes, expenses, cash flows, assets and liabilities. Get your finances under control. Stop asking your parents for money for everything unless it is a real emergency. Wrong investments, bad money management, and unnecessary expenses should be curtailed in order for this to work.
Prepare for medical emergencies and routine costs alike
You will leave no stone unturned to care of your parents and will do whatever you can to get them quality healthcare. But rising medical expenses can eat into your parents’ retirement fund, and in case they do not have one, it can cause a financial burden on you and your spouse. To be able to afford suitable healthcare, you need health insurance. While it’s definitely true that the older you get, the more expensive health insurance gets, there are some insurers who offer special plans for older citizens,
You yourself cannot be your parent’s retirement plan; they need to have their own finances to support them, even if you are going to be around to care for them.
For your part, you can ensure that they have the best possible retired life by helping them save and invest. You can ensure that your parents can enjoy a seamless transition from a successful career to a wholesome retirement by understanding what role you need to play in making that happen.
To get you started, here is:
"Knowing yourself is the beginning of all wisdom"- Aristotle -
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