Summary of this article
Ensure parents share expenses so your retirement corpus stays safe.
Trim low-priority spending to create room for child-related expenses.
Revisit your retirement plan if caregiving affects health or finances.
Everything may not always go as you would have planned for your retirement. So, you need to adjust your retirement plan to make it more realistic in sync with your prevailing situation. With busy city life and work pressure, it can be difficult for some people to simultaneously look after their children, so they may shift their children to their grandparents for better care. For grandparents, it may add to their expenses, change their lifestyle and at the same time, they may get a solution for their loneliness. Here are some important financial aspects that grandparents should keep in mind if they plan to raise their grandchildren.
Seek Financial Support From The Child's Parents
You must discuss with your children the financial challenges that you may face if you have to take care of your grandchildren. For example, expenses towards school fees, their food, recreation, learning support, medical needs, travelling, etc., along with regular expenses on caregiver salary and electricity bills, should be explained to them. You can't take an extra financial load on your retirement corpus, and this message should be conveyed clearly. Ask your children to provide an adequate financial cushion for taking care of your grandchildren.
Discuss The Dos And Don’ts For Grandchild With Their Parents
It's not easy to look after children after your retirement. So, you and your grandchildren have to mutually support each other. It’s better to make a list of dos and don’ts to maintain discipline and ensure the safety of the children.
Adjust Your Budget
Despite getting financial support for grandchildren, you may still sometimes have to use your retirement money to spend on them, and that's alright, provided you have already made adjustments in your regular budget. You should try to reduce some of your low-priority expenses to create an extra financial cushion. It will help you meet some of your grandchildren's expenses without waiting for permission from their parents.
Finally
For some grandparents, living with their grandchild could be a chance to create a bond with them. It can help them avoid loneliness by living with their grandchildren. However, if you are uncomfortable raising them due to financial constraints or your health issues, you must immediately convey this to your children and make them understand your decision. Living with your grandchildren may also demand a change in your retirement lifestyle and several adjustments, so make sure that you are prepared for it before you are given an acceptance to raise them. You may take help of a financial advisor to restructure your retirement plan if you want to raise your grandchildren with you.
The author is an independent financial journalist
