I had a chance to interview Brian Fricke, author of Worry Free Retirement: Do What You Want, When You Want, Where You Want
about helping parents make sure their children become financially independent.
Q: Why do parents need to make sure they aren’tbecoming their child’s ATM?A: Hopefully it is the goal of all parents toraise their children to be independent and self-sufficient, contributingmembers of society. If kids are raised to continually go to the mom and dadATM, this defeats the purpose.Q: How can parents accomplish this with youngkids?A: Get the kids involved with managing their ownmoney as early as possible. If you give them an allowance, have them divide upinto three envelopes; one for giving, one for long-term saving, and the otherfor current spending. Have them purchase most of their necessities such asclothing and gifts for friend’s birthday parties.
Q: How can parents be supportive of the collegeyears whether their kids are at home or away and still encourage financialresponsibility?A: Far too many people have been allowed tothink that the solution to getting ahead in life is just getting a collegedegree. While that may have worked in the past, it doesn’t work now. Today,students must be careful in picking their college degree and higher educationmaking sure they have done research ahead of time that gives them a reason tobelieve that there is enough of a demand in the marketplace for their chosenline of education that would warrant pay significantly above minimum wage tojustify the investment of both time and money in pursuing a college degree. Oneof the worst things parents can do is jeopardize their own retirement in orderto finance or fund their kids’ college. Every parent and grandparent that wework with is to never be a burden on their family both physically andfinancially. Don’t risk your own financial future for the sake of educating achild or grandchild. So depending on your economic situation, you may not beable to provide much towards college tuition and that’s okay. You owe it to yourselfand your family to first fully fund your own retirement. Get your studentsinvolved in the total cost of the college education they are pursuing. Havethem apply for scholarships and grants. Any short fall should be made up frompart-time jobs; not student loans. The goal should be to graduate college in agood education in a field that has high demand, worthy of above average pay andhere’s the important part, no debt!
Q: What can parents do if their kids need tomove back home due to unemployment to be supportive but not submissive?A: Have a family meeting and agree uponconditions and put them in writing to avoid any misunderstanding or hurtfeelings. For instance, how long will they be allowed or expected to stay athome. Will they be contributing towards the cost of utilities, food, etc…Willthey be expected or responsible for any chores or home improvement projects?What about inviting friends over? Basically think of yourselves as roommates and sit down and agree uponroommate house rules. Put them in writing and give a copy to everyone. Anddon’t make it too comfortable for them. They should be uncomfortable. Think ofit as added motivation for them to become independent and self-sufficient asquickly as possible.
Brian Fricke is an award-winning financial planner, accomplished author and professional speaker. He is the owner and founder of Financial Management Concepts, and for the past 22 years his passion to help others has led him to share his knowledge of how to Live Worry Free – do what you want, when you want, where you want. When you apply his Live Worry Free tips and teachings to your own advantage, you’ll be amazed at what is possible for your business, career and life. To learn more, or to book Mike for your next meeting or event, visit www.TheKeynoteGroup.com!
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