The Big Financial Mistake New Parents Make

From the first time you hold your child in your arms, you realize you’d do anything for them. Your heart magically changes the moment you meet your new baby. If you’ve felt the unconditional love of a parent, what I’m about to say might sound shocking.

Prioritizing goals for your kids is one of the biggest financial mistakes new parents can make. How could that be? Didn’t we just agree you’d do anything to make your child happy? Yes, but sometimes the less obvious approach is the wisest.

Let’s say you put all of your hard-earned money toward an education fund for your kids while neglecting your own retirement fund. What happens when you reach retirement age and don’t have a plan in place? Chances are, your children will have to support you. This risky approach can leave your kids feeling stressed and confused. 

So what about their education? It’s important to consider that the education system has safety nets built in. Plus, plenty of government-funded programs are available for extra help. That’s not the case when it comes to retirement. If you don’t have a strategy, you’re on your own. It’s great to save for both if possible, but if you have to choose, retirement planning takes priority.

It’s surprising to learn that putting your kids before yourself might not actually be in their best interest. I get it– that isn’t how we’re used to thinking about parenthood. But when it comes to the long-term consequences, you’re better off focusing on your own future needs. Don’t sacrifice your savings unless you’re confident your college grad will carry you through your retirement!

We specialize in supporting you through tricky decisions like this one. We can help you set smart priorities and get comfortable with your money. Give us a call!