Saving For Family Spending in Retirement
Get tips on saving for family spending when you're retired to make savvy decisions
Saving for retirement doesn't necessarily require saving for family, but if you want to continue giving gifts around holidays and birthdays it's important to be conscious of the money you'll spend. The primary goal when saving for retirement is to ensure you have enough funds to allow you to live comfortably for the rest of your life. This includes daily expenses, vacations and medical bills, as well as saving for family spending if that's one of your retirement goals. Since you will likely have a fixed income, we recommend that you plan ahead for family spending to ensure you have the funds you need to support your lifestyle and give back to your children and grandchildren.
Create a family spending and saving budget
Many grandparents enjoy showering their grandchildren with gifts. If doing so is something that makes you happy, it's important to plan ahead as you're saving for retirement. Set a cap on how much family spending you plan to do each year. Create a budget that will help you stick to the amount you allocated towards spending. Then, create a savings plan to replenish those funds annually. Understand that it's OK to scale back family spending during retirement if needed.
Give a gift that keeps giving
Consider investing in your child or grandchild's future by opening a savings account in his or her name.This savings account can then be used to help pay for college, a wedding, or put towards a down payment on a house. Choose a high-interest savings account that you can continue contributing to over the years. Determine the total amount you want to save for your family member, and then decide how much you want to deposit each year. Other savings options include opening certificates of deposit or purchasing savings bonds or mutual funds for your family member. This type of gift will not give them immediate access to the funds but may earn a higher interest rate the longer they are left untouched.
Prepare for the holidays year round
If giving gifts to your family on the holidays is important, open a separate savings account that can be used as your family spending fund. Deposit twenty dollars a month and use that money to pay for gift giving on special occasions. Once you get in the habit of setting the money aside, you can avoid the extra strain on your budget once the holidays come around.
Saving for family vacations
Instead of buying material gifts for your family members, plan family vacations that will allow you to spend time together. Save up to rent a beach house, go camping or plan an educational trip. Consider opening a money market account as a way to meet your vacation goals faster, and plan the trip far enough in advance so that your entire family can join. With a little bit of planning and saving for retirement you can focus on making new memories with your children and grandchildren.
Open a Citizens Bank savings account for retirement
Retirement gives you the opportunity to create a new life for yourself, rediscover your passions and spend more time with family. To ensure you are prepared for retirement, contact a Citizens Bank representative for more ways to boost your savings for retirement today. Or get started by opening a savings account online.