These numbers are eye-opening
It may be unrealistic to expect that you won’t have to at least partly help out your adult children and maybe even your aging parents, too.
But let’s run some numbers to see what your financial picture could look like if you at least dialed down that support to your children.
Here are the conditions: Instead of $3,000 of annual support for adult children, let’s say you only did $2,000 and then took that extra $1,000 and invested it in a low-cost index fund assuming an 8% annual growth rate.
What would your future financial picture look like if you did that for five years? For 10 years? Or maybe even 15 years?
Your money would more than double by the time you hit 15 years!
Again, to recap, that’s assuming you only helped your 18-year-old with $2,000 instead of the average of $3,000 through age 33.
You can run your own calculations specific to your family situation using the compounding calculator at MoneyChimp.com.
But the message is clear: If you can dial down the financial support for your adult children at all, it’s well worth it!