You’re in your golden years and you and your spouse are enjoying retirement. But then one of your children asks for a loan. Should you tap into your savings to help them? Or, is it better to steer them towards a personal loan to help them get out of debt?
Use these tips to help you explore when to say “yes” and “no” to your adult children and how best to help them – without harming your own financial future.
Consider Your Needs First
Not having money is a concern for anyone. But in your retirement, there are added pressures to prepare for the unexpected. That makes a loan a very touchy topic.
Start with a discussion with your spouse to address if you can afford to help your adult child. Keep in mind, if you run out of money, who will support you? By discussing the topic, you decrease any anxieties or concern over how to handle the matter.
A few points to think about include:
How much money do they need?
Will the loan affect your retirement and ability to pay your bills?
Will you take the money out of a retirement account?
Will they pay the money back and by when? What if you have an emergency in the interim?
Have a Discussion with Your Child
While it’s not your financial responsibility to support your adult children, discuss the matter…
20 guests or 200? Chicken and steak or vegetarian? Classical music ensemble or Gangnam style DJ? So many decisions! Planning a wedding can be quite stressful. But, with the right planning, you can stretch your money and have the wedding of your dreams.
Use these tips to help plan your budget (and take the stress out of your big day!).
Determine How Much Money You Have to Work With
A budget is necessary as wedding costs can quickly spiral out of control if you’re not careful. While most couples cover the wedding costs themselves, some have help from parents. Others take out emergency loans as a back-up. That’s why a budget can keep you on track (and on schedule).
To help with your budget:
Add up all money including savings, your parents’ contributions and future paychecks.
Include how much you need for the caterer, flowers, hotels, wedding attire and other expenses.
Don’t get alarmed if you’re over-budget. You can trim back by changing florists or hiring a DJ instead of a band…