When your kids move out

 

When your kids move out

Your kids moving out of home is a time to reflect on many things, including your finances. Here we list some of the important considerations that you may wish to reflect on.

Review your insurances
Now could be the ideal time to review your insurances and think about removing any children as dependants from a family policy, such as a health or motor vehicle insurance policy, which may reduce your premium. It’s also important to discuss this with your children, to ensure that they remain adequately insured themselves.

Pay off your debt
Setting goals to pay off debt is important. You may have more funds available that used to be spent on extra food and bills. If you have a mortgage, paying it off will give you the financial freedom to explore other opportunities such as investing or going on an overseas holiday.

Downsizing
If the extra space that is in your home is not needed, a lot of money can be saved by downsizing. It may be difficult to sell the home that your kids were brought up in, but the extra money can be used for creating the retirement lifestyle that you have dreamed of.

Financial support for your children
What you anticipate to spend on your children once they move out and what you actually spend may be two different things. If you have created a budget, it is wise to occasionally review what you are spending on your children, to ensure that it is not affecting your own financial future in terms of retirement saving or reducing your own debt.

Retirement planning
Your kids leaving the nest can be perfect time to review your retirement plans and work out what you need to achieve your desired retirement lifestyle. Strategies include putting extra money into your superannuation and investing. Every retirement plan is different and our Financial Planning experts can help you with a personalised plan to maximise your money. For further information, call 1300 654 193 or email finplan@bankfirst.com.au.