New Delhi: As parents, it is important to make children financially independent. However, the dependency of parents on their children in their old age increases more. As parents, if your financial planning is poor then you may face a shortage of funds in retirement and have to ask your children for financial assistance. Therefore, it is important to create a proper retirement fund keeping the rate of inflation in mind.

But what if the love for your child deprives you of your life’s savings? Though it is easy said than being done, in order to save your retirement fund, you should not fall into given below emotional traps which can risk your retirement fund.

1. Millennials often get bitten by the entrepreneurial bug due to multiple reasons such as dissatisfaction at the workplace or feeling of being stuck at the workplace. One should be financially prepared before taking this extreme step. If your child asks you for monetary help in order to build his own startup and you don’t have much to shell out. Then it is better to encourage him for a loan. This is because disturbing or breaking your investments can lead to a shortage of funds in your retirement age.

2. Check your child’s repayment cycle. If he is consistently on credit card payments or loan EMIs then spending your life’s savings would not be a good idea. Defaulting payments and EMIs is a sign of financial instability. Even if you try to help him or her then, in the long run, this attitude might eat up your retirement corpus.

3. If your child is going through a really tough time, support him or her by all means such as help them in finding a good job. This is because you can’t provide an endless supply of money to them.  Encourage them to take up a few freelancing projects to ensure the continuity of income. This will provide them with a perspective of new learning and keep them updated.

4. While staying with your children once they have a family of their own, make sure they are not financially dependent on you. Sit and discuss with them as to how they have to fund their lifestyle themselves and not seek financial help from you. Contributing whenever necessary is not bad but there shouldn’t be any dependency.

5. Look out if there is a financial disparity among your children. In such a situation if you try to help one financially, it will lead to family disputes. It may be noted when it comes to sharing expenses or spending, the financial imbalance starts impacting the ties between the siblings. The drift between the siblings come during the financial arrangement for aged parents. The one who is earning less expects the wealthier one to contribute a major chunk for their cost of living and medicines.

Source:- timesnownews

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