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While riding a public utility vehicle in the morning on my way to school, I overheard two mothers perhaps in their 60s to 70s talking about their family and their kids. One exclaimed he got five kids while the other one has three. Both moms get money from their kids but their concern is that their kids don’t do it monthly. They complained that it is not consistent at all and they need money for their bills and medicine. Then it hit me. Are these mothers using their kids for their retirement fund?
A good friend of mine also messaged me and suggested about posts that I should write. She was talking about investment and insurance. She has housemates before who were doing financial literacy and they center on not making your kids your retirement plans. That incident and this message truly deserves a blog post!
Filipinos as we are, we have that earnest drive to help especially our immediate family. And we cannot deny that sooner or later our parents are bound to grow old and they would be incapable to work. The least we can do as their kids would be to help them during these times most especially in their financial aspect. And there’s nothing wrong with that. That is in fact one noble task for the kids. However, that is not their job. They must be helping you voluntarily and not because it is their responsibility. Bear in mind that sooner or later your kids will also have their families to take care. They will have kids to send to school and countless other expenses. Don’t let your kids be obligated to support you financially after retirement. This robs them to save and build for their future.
As a parent or soon to be parent, it is your responsibility to build up your retirement plan. That is why it is important that you get to beef up your retirement money so that you would not wait for your kids to help you financially but instead you would be helping them in their respective families. Wouldn’t it be nice that you can still support yourself when you grow old and also your future grand-kids? Wouldn’t it be nice that you could be able to meet your medications and what not at your own expense without relying from them? That would be the kind of scenario that you should look forward and not the scenario of dependency because they are your kids and they are obliged to help you. Indeed they do but they can only help so much. They have their own life to attend to after all and a family to grow.
As early as now, make arrangements for your retirement. There are already many avenues and ways to do such. You may be inclined to invest a portion of your salary or build up a business. Whatever rocks your boat. However, if you still don’t know what business to make, it would be best to invest it in mutual funds if you don’t have the time. You may also opt to do stock market trading provided that you invest in good companies for your long term investment and you know the market.
The key here is to not rely on your kids or future kids when you grow old. Since you are still working for yourself and for your family, anticipate that you will soon retire. And the best reward for yourself would be a hefty amount that can support you, your future medical bills and even your kids and grandkids. Let us break the cycle of dependency so that your kids can focus their income to themselves and their family. Even more, if you will still have money left, you can opt to give it as your inheritance to them. Isn’t that wonderful! As a parent, it is your job to help your family and your kids in spite of age. That is why proper financial planning today would be the answer.
P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 39 already! Did you deposit the next amount yet?
P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.