Are you shopping for grad dresses, picking out secondary schools, thinking about financial obligations around the corner? As our children approach “Adulthood”, our attention turns to helping them navigate the next chapter of their lives, so that we can enjoy the next chapter of ours! The planning needs to start early so that we are all organized for the changes to come. Here are some important reminders to help with the transition..
TEACH THEM ABOUT MONEY
Teach your kids about “surviving” in our economic environment. Savings habits; emergency fund, food, fun and shelter funds.
Establish a credit rating; get the first credit card up and running and show them what good credit means. There are secured credit cards you can obtain for your children, ask me about the easy process.
Budget lessons are valuable. Send them off to buy groceries, pay a phone bill, utility bill and share the cost of the car expenses-gas and insurance. Sit down and build an expense sheet for them to follow
DISCUSS THEIR SCHOOLING
Our children are approaching secondary schooling, and this is where we sit down and revisit our own budget to ensure we are in a position to help them through the years of studies. Tuition is just the tip of the iceberg! Have a look at the average cost per year for our kids to get smarter…..
If you have set up a fund for their education, it will be helpful and take the pressure off. If you are not quite yet prepared, it might be a good time to discuss a Home Equity Line of Credit (HELOC). Rather than cashing in your (possible retirement funds), or savings, this might be a facility to help get them going while you are still in your home. It’s the most inexpensive way to borrow, and something to consider while you are in this planning process. There are so many advantages to this product, give me a call to discuss so you are ready.
DECIDE ON THEIR HOUSING SITUATION
We all love our kids, but maybe studies away from home is beneficial, for all…
Campus facilities are often tough to get into, can be pricey, and may not be suitable for your child. Many of my clients at this stage have taken advantage of the “Second Home Mortgage”, one of the most effective mortgage products left in the market today. As with many of the insurers’ products, this one may not last long! Check it out...
Recently, I set up a mortgage for a client who purchased a small house in Lethbridge where their daughter is going to college. They fixed it up a bit with paint and TLC, and have their child and 3 other children renting from them…more than covering their expenses of owning. When she completes the schooling, the second child may attend the same school and they will move in. Or they can consider keeping the home as a rental property, or sell – likely for a profit.
If you could buy a home for your children, with a minimal 5% down, you could build your own equity in an appreciating asset, while safely housing your student. Let’s talk about what you qualify for and if this makes sense for your family!
I hope some of these ideas help with the impending anxiety of watching our kids go off into the world. I’m here to help with this journey and look forward to working with your children down the road when they are ready to jump into the real world of Adulthood!