If you are a parent, you should read this.
- Orman issued an important warning for parents.
- She thinks parents are risking their own futures by not focusing on their finances until their children leave home.
Parents face many financial obligations from having children. This can range from paying for food and clothing for 18 or more to covering school fees or even helping children pay rent or get a mortgage to buy their first home.
While providing for your children is rightly a top priority after parents choose to bring children into the world, financial expert Suze Orman thinks many parents are making a huge mistake when it comes to their own finances. whether they put their children first when making financial choices.
She warned that waiting for the kids to leave the house to make your own safety a top priority could end up backfiring on you and cause a lot of problems. And these problems could harm both parents and the very children they were trying to support.
Here is Suze Orman’s warning for parents
According to Orman, many parents “tell themselves that once the kids grow up and get out of the house, they’ll work harder to prepare for retirement.” But, unfortunately, they fail to follow this strategy or they change direction too late and it becomes really difficult to save enough in an investment account for a secure retirement.
Orman pointed to a Center for Retirement Research study that supports his position. After referencing the study data showing that most parents do not improve their financial situation once the children are older, she went on to warn: “Parents who think they will progress in building financial security once the kids are grown, don’t. seem capable of achieving it.”
Instead of delaying retirement savings or other financial goals and potentially creating serious problems later, she said her “heartfelt advice” was not to wait but rather to start working on your own. goals as soon as possible. This includes taking actions such as saving for retirement, choosing an affordable school, buying an inexpensive car, and saving for a house.
Orman thinks this strategy will work best for both parents. and children. That’s because it won’t be too late for parents to build the nest egg they need for their future if they focus on it throughout their lives rather than waiting for their kids to grow up. And if parents have the money they need to support themselves later in life, they won’t have to turn to their adult children for help.
Should we listen to Orman?
Orman’s warning to parents is one everyone should heed. It is important to remember that children have plenty of time to develop their own financial life and recover if they have to go into debt. Those in their 50s or close to retirement, on the other hand, lack the time to make compound interest work for them. And they can’t bet on being able to work indefinitely to make up for the lack of savings. They also cannot walk their way to retirement.
Of course, it’s important to strike a balance because no parent is going to let their children struggle while focusing on themselves. By looking at the big picture, avoiding waste, and clearly defining different individual and family goals, parents can hopefully find a way to help their children get off to a good start in life without compromising their own future financial security in the process.
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