Millions of college students headed off to school this fall and left their parents with empty nests. After the shock starts to wear off, and while parents are waiting for the next skype session with their children, parents need to reevaluate their financial situation.
Empty Nesters Spend More Money
According to Boston College’s Center for Retirement Research, it is common for parents to actually increase their spending on consumable goods when they no longer have children living at home. Consumable spending is spending on things like groceries, restaurants, dining out and vacations. It makes sense that parents might go out to dinner more often once the kids are out of the house, and they might take more vacations (they deserve it!) and they might buy more prepared meals than they did when there were more mouths to feed.
Be Mindful of Spending
None of these expenses are necessarily bad, but parents need to be aware of their spending habits and pay close attention to where their dollars are being spent once the “nest” is empty. Many parents assume they will have more money to put into retirement funds once the daily costs of caring for children are done, but if parents don’t keep track of their rising spending habits, there be nothing left each month to put toward a retirement fund.
Pulling it All Together
Once your kids head off to college and you find yourself with an empty nest, it’s time to put together an estate plan that implements a strategy for saving for retirement, for tax-savings, and for protecting your loved ones. Experienced Estate Planning Attorney Elga Goodman can help you get started on making smart choices to preserve and grow your estate. Contact us today at 973-841-5111 to learn more.