What They Don’t Tell You About Retirement: Part 2 – Grandchildren Are Expensive
I know I and many others mockingly complain in a joking manner about our grandkids costing us a "fortune" when they visit—but with no malice intended, did you actually consider these costs when crafting your retirement spending plan?
I certainly never thought about this; it didn't even cross my mind. Maybe I'm being too generous, or perhaps I've had a run of bad luck. In recent months, my granddaughter dropped an iPad, requiring a replacement, and my grandson accidentally let a toy car slip from his hand while spinning around, resulting in a car-shaped hole in our TV.
Some costs we did consider beforehand: Christmas and birthday presents, for example, along with money we put into savings accounts for their future. Beyond that, I never thought through the scope of other expenses, and these, I've found, can build up over time.
My daughter works hard but struggles financially, and Suzie and I feel an obligation and need to "help out" with care costs. Recently we purchased a school uniform for our grandson and all his back-to-school essentials, plus a daycare uniform for our granddaughter. Although I don't really understand this expense, we also pay a monthly subscription for games on his Xbox.
During the summer, our grandson stayed with us at our holiday home. Eating out involved an extra hungry mouth with hollow legs attached! Requests for money to visit the harbour shop with his friends soon mount up. We both enjoy playing golf together—that's another extra cost. The thing is, we handed this out without a thought or any regrets; he's my grandson. But it's certainly not spending we detailed on any spreadsheet.
It's natural that love for our family makes us blind to these costs—after all, what good is our wealth if we don't use it to improve the lives of our nearest and dearest? But should we maybe make certain of our own financial firm footing? By doing so we can ensure our continued ability to help our family and, just as importantly, look out for our own needs.
I'm in the fortunate position that these unforeseen retirement costs are not an issue, but not everyone might have this luxury within their budget. More awareness of this emotional spending during retirement planning could help. We could then spend freely and joyfully on our grandchildren. And we could do so without the worry of compromising our own retirement security.
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