Kids Becoming Adults? 5 Reasons Parents Need New Financial Planning

Are your kids turning into teens and young adults? Along with the many other changes in your family during this time, you should also consider how your financial planning needs are changing. As you move from being parents of minors to parents of adults, here are a few things to address with your financial planner. 

1. Higher Education

First and foremost, your biggest short-term financial deadline will be their college education. If you've been setting aside money for a while, now is the time to assess how much you have and how it compares to current university costs. You should also get a better idea of what type of education or career goals your teens want to pursue so you can tailor savings to their actual interests. 

2. New Estate Plans

Hopefully, you've had end-of-life documents already in place as parents. But such things as wills, trusts, powers of attorney, guardianship documents, and account beneficiaries should all be reexamined as your children reach the age of majority. The kids may now be able to directly inherit money, for instance. You may also want to reorganize beneficiary designations to account for their changing financial pictures. And, of course, as grandchildren appear on the scene, you'll need to decide how to handle them in your will.

3. Retirement Planning

As your kids get older, so do you. Many younger parents haven't focused on the distant goal of retirement planning as much as shorter-term obligations and goals. Now, though, is the time to analyze your retirement savings, boost contributions, and coordinate plans with your spouse.

4. Assist with Big Purchases and Investments

Do you want to help your adult children beyond just a good education? Many parents, for instance, want to help their kids pay for a wedding, buy a home, get their first car, or even move out for their first big job. But you'll need to see how your investments and saving strategy can fund this. Do you want to take money from another goal? Create a targeted savings account? Match the child's own savings? It will all be easier if you put a plan in place before the need arises. 

5. Personal Pursuits

As they get fewer responsibilities toward their children, most parents turn their attention to what they want to do for themselves. Do you want to change careers or start a new business? You'll need financial buffers to do so. Want to travel? Volunteer? Buy a boat? Be sure to fund leisure pursuits without taking away from retirement planning and other necessary goals.

 No matter what adjustments you need to make as your kids grow into adults, a wealth management consultation can help. Learn more about how they can help during these transition years by making an appointment with financial planners today.