Finances may be difficult for your children and/or grandchildren in college. Avoid cashing in your retirement money to help with college fees. Students can apply for scholarships, but there are no scholarships for retirees. Also the financial experts will tell you not to co-sign for a student loan, car loan, bank loan or even a mortgage for anyone. If that person fails to pay on the loan, you are stuck for the balance. It will also negatively impact your credit rating and a good credit rating is hard to come by.
Conduct serious discussions with your family members about their finances. Remind them that they must be careful with their finances because yours are limited. You’ve worked hard for your retirement and they shouldn’t expect you to keep bailing them out. They should be empowered to help themselves even if it is a struggle.
If you can afford to help someone financially without it causing a hardship, feel free to do so. But never loan any more than you are willing to lose. It is better to give a small money gift to a relative rather than loan an amount you can’t afford to give away. Unpaid loans can cause a serious break in your relationship.
Even if you have extra money, your family members don’t have to know how much. Remember: That is your money in case of emergencies like a trip to Europe. You worked hard for the money. Don’t just give it away!
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