You Spoiled Your Grandkids

As a grandparent, you love to spend time with your grandchildren and spoil them every chance you get. “Who doesn’t want to spoil the heck out of their grandchildren, especially when you don’t have to change the diapers?” Hayes said.

But spending too liberally on your grandkids might endanger your nest egg. Your retirement budget will take a serious hit if you keep traveling to see them, taking them and their parents on vacation, paying for their college tuition or moving closer to them, Hayes said.

What To Do

It might sound difficult but having a plan for what you’re willing to pay for before your grandchildren are born, will be a win-win for you and your grandchildren. “This protects everyone from the ‘cute’ factor of seeing that baby’s smile for the first time and then sacrificing your own financial freedom in retirement,” Hayes said.

It’s also important to talk to your own children about what costs you’re able or unable to help them with, such as education costs. “Make this clear to your children so they can focus on their own financial plan and know what to expect in the future,” Hayes said.