Will your Kids be Able to Enjoy the Same or a Better Lifestyle than you?
In the past you went to school, then university, got a degree and got a job, got a mortgage and moved out of the family home. But as times change fewer young adults are finding work as they leave tertiary education and a new life-stage, dubbed the “emerging adult”, has arrived to describe the limbo state of the financially stunted graduate.
A recent Ipsos Mori survey found that only 30% of under thirties thought they would have a better lifestyle than their parents had, and only 40% of respondents of all ages thought young adults would have it better in the future. Given that more children growing into young adults are staying home, or are reliant on their parents for financial support, into their late twenties and early thirties than ever before it is understandable so many have a bleak outlook for the future. Many parents are taking on extra debt while they help their children with rent, phone bills and even grocery money. Some parents are even settling for a less comfortable retirement or working past retirement age to fund this shortfall.
The causes of this challenging economy for young adults, The financial crash, low paid entry level jobs and rising costs amongst other things, are entirely out of your hands but there are steps you can take today to give them a head start on their way to financial independence.
Nurture their independence
It could be argued that long term support is simply creating a generation of lifelong dependents but as a parent you want to help your child to be self sufficient without compromising your own happiness. The fiscally astute see help with rent and bills as money down the drain, whereas helping with a deposit on a mortgage and getting one’s child on the property ladder puts them on solid ground. Similarly, sensibly placed investments can reap reliable returns. Parents choosing this route see it not only as prudent but feel that since their children will inherit the money anyway why not let them use it now?
Get professional advice
A well managed investment portfolio can help achieve these goals. Property and investments provide a way for parents to ensure that their children are looked after now and when you are gone. There can be no greater satisfaction than entering retirement knowing that your whole family’s future is taken care of.
These articles are for your general information and education only and do not form part of personal advice. Should you wish to speak with a finance professionals. please contact 1300 LYFEGROUP and book a one-on-one with us today.
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