Showing posts with label gifts for grandchildren. Show all posts
Showing posts with label gifts for grandchildren. Show all posts

Wednesday, December 24, 2014

Realistic Gifts for Children and Grandchildren

Over the years, many of us have grown accustomed to being quite generous with our adult children and grandchildren. In addition, our children and grandchildren may have grown accustomed to receiving large gifts from us.  This can cause problems as we age and our budget can no longer permit us to be so generous.

What can you do to make sure that you do not destroy your own retirement plans by spending too lavishly on members of your family?

Talk to Your Adult Children

Even before you retire, there is nothing wrong with casually saying to your children, "I'm glad I am able to buy you this expensive gift now, while I'm still working, because I won't be able to afford to do these things once I retire."  This prepares your children so that, when the time comes, they are not shocked when they expect one thing and receive something else.

Set Up a Realistic Budget

It goes without saying that some retirees are able to afford to give more to their adult children than others.  Whether you can afford to spend $5, $50, or $500 a person, make sure you have set up a realistic budget that will not disrupt your income.  You do not want to be spending down your savings or investment principle in order to purchase gifts for your children.

The Best Gift You Can Give Your Children is to be Self-Supporting

Do you really want your children to have to support you in the coming years ... possibly at the same time they are trying to put their own children through college?  Do you want to have to move in with your children for financial reasons?

In addition, most young and middle aged adults would experience a great deal of financial difficulty themselves if they were called upon to help support their parents.  Consequently, you are doing your children a favor when you do not overspend on them for holidays and birthdays.

Sometimes Large Cash Gifts Can Be Part of Your Estate Planning

On the other hand, sometimes giving large gifts of cash, stock or property can be part of your estate planning.  If your estate planner recommends it, making large gifts to your children while you are still alive is one way to reduce inheritance taxes on large estates.  However, only do this after consulting with your estate planner and you have determined that you will continue to have an income stream that will support you for the rest of your life.

Make Sure You Keep Things Fair

When you reach the point when you have to decrease the size of the gifts you give to your children and grandchildren, be careful to keep things fair.  If you pay for an expensive trip for one grandchild, for example, but have no intention of doing the same thing in the future for others, it will only cause resentments and unhappiness.  Make sure that you are as even-handed as possible.  This is especially important in a blended family in which the husband and wife may have children from other marriages.

Decide Whether You Want to Give Gifts, Cash or Something Else

Some people I know give several hundred dollars at Christmas to each of their adult children, and they let them divide up the money between themselves and their children as they see fit.  Other people give individual gifts to their children and grandchildren, but no cash.  Another choice is to give gifts to one generation and cash to another ... for example, gifts to your children and cash to the grandchildren (or the opposite).   I have also known people who just buy gift certificates or write checks to everyone in the family.

One year, my husband and I decided to buy Disney stock for each of our grandchildren.  We thought it would be good for them to have an interest in the stock market and it would help a little with their future college costs.

However you decide to handle gift giving is up to you and should be based on your own financial situation, as well as what is easiest and most enjoyable for you.  After all, since you are making the gift, you have the right to decide how you want to handle things.  Just make sure you remember to take care of yourself, too.

Happy Holidays from my family to yours!

If you are interested in other articles about financial planning in retirement, use the tabs at the top of the page.  They contain links to hundreds of other articles on topics that could be of interest to you.

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Tuesday, March 19, 2013

Gifts, Travel, Family Relationships & More

Among the problems that many Baby Boomers experience as they get older are the ways their relationships change ... whether with their spouse, their adult children or their elderly parents.  Consequently, over the past few years I have written numerous posts about retirement and family relationships and you will find links to those articles listed below.

These posts have covered a number of difficult topics including the issues of moving in with your adult children, getting divorced after age 50, and healing your family relationships.

Closely related to the topic of family relationships are the topics of gift giving, travel and ways to keep busy after retirement.  I have included travel in this category for two reasons.  First, many of the trips seniors take involve visiting their family members.  Second, traveling anywhere as a couple, even to have fun, can sometimes put stress on our relationships.

Index of Baby Boomer Retirement Posts on Family Relationships

"A Delightful Little Boom on Aging" is an Uplifting Book

Aging in America - Fascinating Facts

Are We Grateful and Kind or Angry and Bitter  

Gifts Retirees Will Appreciate - Finding the Right Gift for a Senior 

Golf Carts vs Golf Cars for Retirees

Grandparents and New Grandchildren

Happy Marriage Tips for All Ages 

Have a Better Cruise Experience 

Healing Relationships with Your Adult Children

Help for Retired Grandparents Raising Grandchildren

Helpful Smart Phone Apps

Holiday Shopping Ideas for Seniors 

How Far Should You Live From Your Adult Children?

How to Avoid Caregiver Burnout 

How to Cope with Death and Grief

How to Have a Happy Marriage After Retirement 

How to Help Grandchildren Deal with Tragedy

How to Publish Your Autobiography for Free

How to Retire without a Car 

Independent Travel vs. Guided Vacations

International Travel Tips for Senior Citizens

Is it Safe to Cruise on Your Next Vacation?

Is it Safe to Travel Alone? How Can You Make it Safer? 

Keeping Romance Alive After 60  

Safely Travel Alone: Solo Vacation Tips

Safety Rules for Grandchildren

Scrapbooking with Christmas Cards

Sexually Transmitted Diseases After Age 50

Should You Loan Money to Your Adult Children? 

Spending Time With The Grandkids

Starting Over after a Disaster

Start a Baby Boomer's Club in Your Community

Staying Home? Keep Busy and Reach Out to Others

Stay Safe and Enjoy Facebook

Surprises in Retirement 

The Best Years of Your Life - After Age 65  

The Downside of Downsizing Your Home

Tips for Boomers Who Live Alone

Top Toys for Grandkids 

Travel Scams to Avoid

What Will You Do After You Retire? 

When Grandkids Live Far Away

Will You Enjoy Retirement?

Your Attitude about Retirement and Aging Can Make all the Difference! 

Check out these other Index Articles, too!

Great Places for Boomers to Retire Overseas  

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers  

Money and Financial Planning for Retirement

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