Tips to childproof your retirement

Though having kids in many ways brings joy to your life, unfortunately, in most cases, they don't help you make financially secure. In fact, parents are the ones who compromise on their savings to support their child even after he/she starts earning. It is understood that you want to help your children in every possible way to make them successful, but doing it at the cost of your own financial security may lead to disastrous outcomes. So, it is crucial to make sure that you don't run out of money just because you were determined to support your child. Following are some of the tips that can help you childproof your retirement.

Re-prioritize your retirement
At times, while taking financial planning decisions, people usually tend to prioritize children education and marriage above their retirement. However, they fail to realize that this may lead to lower savings for retirement. Though, this is not similar in all cases, but people with medium to low cashflow surplus can face low retirement savings problem. So, it is important to prioritize your financial goals. Meanwhile, don’t prioritize your financial goals based on near-term or long-term requirement; rather it should be based on its need’s intensity. Retirement should usually be prioritized immediately after risk management and emergency fund planning.

Teach your child
Teaching your child about financial independence in their young age would help them to understand various financial concepts. This will even help them to inculcate the habit of saving and investing at young age. This will, in turn, create sufficient corpus to fulfill their requirements without putting pressure on you to compromise on your retirement savings. Teaching them money values would even make them financially mature.

Limit financial support
It is the fact that we are emotional and always tend to have a soft corner for our children. So, it is very difficult for a parent to not support their kids financially. But to childproof your retirement you need to limit the financial support that you give to your children. What you can do is you can partially fund your child’s requirements and let your child arrange for the rest. This will generate a sense of responsibility and money values in them along with securing your retirement.