Your children watch and learn from you. Have an open conversation about the importance of financial planning and show them how you take steps to investigate before investing. Children raised with money management skills will be better prepared for their own financial success.
As parents, you know that children are a significant financial obligation. Sometimes, parents resort to using their retirement nest egg to finance their children’s post-secondary education - this is not always the best solution. Your children may be able to take advantage of other resources such as scholarships, grants, loans, work-study programs and various other payment options that are exclusively available for educational expenses. Other options include using Registered Education Savings Plan (RESP) savings if available, or encouraging your children to cover expenses through part-time employment.
Checklist - Children
- Teach your children about basic financial concepts and model responsible money management. View our information for Teachers, Parents and Youth.
- Consider the potential negative impact of using your retirement assets for your children’s education.
- Talk to your children about exploring education financing options.
- Set financial ground rules and expectations if adult children, sometimes referred to as “boomerang kids”, move back home.
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