New parents may not be able to visualize that one day their
largest expenditures won’t be centralized around providing
necessities for their children. Adults go though many years
of paying for diapers, toys, clothing, food, and education
for their children. Yet, when the children have flown the
coop, spending patterns change, and even more changes
await come retirement.
According to a 2020 survey from the financial services firm
Edward Jones, 68 percent of workers soon to retire said
they had no idea how much they should be setting aside
for expenses, particularly health care and long-term care.
Professionals approaching retirement would be wise to
analyze the Consumer Price Index - Elderly (CPI-E). It is a
good reference to estimate which future expenses will cost
the most after retirement. The Bureau of Labor Statistics
looks at consumer spending and uses various data to
determine the rate of inflation in key areas that apply to
older adults starting at age 62.
Individuals may be surprised to learn about where they’ll
be spending the bulk of their money when they get older.
Here’s a look at some key categories.
According to data from the Employee Benefit Research
Institute, in 2017, the most recent year for which data
is available, housing accounted for roughly 49 percent
of all spending for seniors. Focus should be centered on
lowering those costs when a fixed income is imminent.
The possibilities include paying off a mortgage; downsizing
a home to have a lower rent or mortgage payment;
refinancing a home to a fixed-rate loan so that costs are
predictable; and taking on a tenant to offset costs.
The cost of food will not change dramatically, but it can
eat into your budget. Even though food costs may decline
when there’s only two mouths to feed, food and beverage
spending may go up due to more leisure time and dining
out. Utilize senior discounts by shopping on days when
stores offer percentages off purchases. Save money on
restaurant spending by eating out at lunch instead of
dinner, splitting plates or skipping appetizers.
Experts warn that while many expenses decline in
retirement, health care spending increases. According to
Fidelity, the average 65-year-old couple retiring in 2020
in the United States needed roughly $295,000 just to
cover their retirement health care expenses. Those with
family histories of severe illnesses or those with preexisting
conditions will need even more. It’s also important to realize
that roughly half of the population will need long-term care
at some point, offers The Motley Fool, and that requires
advanced budgeting as well. Many people find that
Medicare supplement plans can bridge the gap in expenses
that government-run plans will not cover. Saving through
a health savings account (HSA) when employed also can
create extra cash on hand for retirement expenses.
Students may need some time to adjust at the beginning
of a new school year. Summer vacations typically lack the
structure of the school year, and it might be unfair to expect
kids to seamlessly slip back into their more regimented lives as
While some early school year sluggishness might be normal,
that should wear off pretty quickly. If not, and students appear
to be struggling to get motivated for their schoolwork, parents
can try various strategies that should help reignite youngsters’
passions for learning.
• Make your home more school-friendly. Summer is a
relaxing time of year when parents have a tendency to
relax rules around the house. But come the school year,
parents must make sure their homes are as conducive to
studying as possible. Resist the urge to turn the television
on each night so students are not distracted from their
studies. Keep the home quiet so students are motivated to
focus on their studies.
• Encourage participation in extracurricular activities.
Various studies have examined the relationship between
extracurricular activities and academic performance. A
2002 study published in the journal Sociology of Education
found that participation in extracurricular activities is
associated with improved grade point average, increased
college attendance and reduced absenteeism. The link
between participation in extracurricular activities and
improved academic performance is still in need of study,
but such participation may help children acclimate to the
structure of the school year more quickly than they might if
they do not participate in such activities.
• Encourage curious youngsters. Kids are curious, and
fostering that curiosity can be a great way for parents to
get their kids excited about learning. Whether it’s during
the school year and part of their curriculum or on summer
break, encourage kids to engage in subjects that interest
them. As kids learn more about the topics and subjects
that interest them, they may develop a passion for learning
that they can then take with them to the classroom.
• Express an interest in the subjects children are studying.
Another way to motivate students at the dawn of a new
school year is to express an interest in the subjects they’re
studying. Ask questions about their studies and encourage
them to share their thoughts and opinions. Engaging
students about the subjects they’re studying can motivate
them to explore those subjects more deeply than they
Motivating kids to be excited about their schoolwork at the
dawn of a new school year can sometimes be difficult. But
parents can employ various strategies that can help their
children readjust to life in the classroom and motivate them to
perform to the best of their abilities.
parents can use
SOURCE: METRO CREATIVE GRAPHICS SOURCE: METRO CREATIVE GRAPHICS