A-Z of Personal Finance: B is for Boomerang Generation
The “Boomerang Generation” – the return of the children
Do not jeopardize your retirement
Although you may feel somewhat cash strapped from paying off your mortgage, raising and educating children, and perhaps shouldering some of the costs of care for your parents, be careful not to jeopardize your retirement savings; try to continue to budget, save and keep any debt under control so that you can retain your independence in your retirement years.
Set some parameters
If you have “boomerang” children, have a conversation to lay out terms or a broad understanding with clear parameters set. In some cultures, parents go as far as to draw up a formal contract to outline expectations and financial responsibilities. It is easy for children to slip back into the routine they had before they left home several years ago, but you should encourage them to contribute in some way towards the upkeep of the house; this might include contributing towards weekly groceries, petrol and utilities such as diesel, and cable TV if they are employed.
Encourage your children to have a clear financial plan to help them develop sound financial habits that will last them a life- time. Even whilst they are still under your wing, they can learn some strong lessons about the real world as they navigate the transition from young adulthood to financial independence.
The full text appears in “A-Z of Personal Finance” by Nimi Akinkugbe. Available in leading bookstores including Glendora Books, Laterna Books, Patabah, Terra Kulture, Quintessence, Jazzhole …and online from Jumia, Amazon, Barnes & Noble, Manna Books and AMV Publishing
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