Four Reasons To Make Your Teens Help Track Your 401K Process

The first step to financial freedom during retirement is to start financial planning. If you re interested in growing your retirement savings, you should get proper 401k management. Growing your 401k so that you have proper income during retirement is only half of the battle.You must also concentrate on paying off major bills such as homes and cars so that your retirement income will be debt free. Since you will be doing a lot of financial planning, it can help to have another set of eyes. Here are four reasons to include your teens in your 401k planning process. 

They understand the value of a dollar saved

Most teens may not know much about retirement or that they will need to save for retirement. Them looking over your 401k plan and current account will give them an idea of what they need in the future.They may also understand why saving is important to you. 

They get the sacrifices

It is common for teens to not understand just how finite money can be. If your children get to know your monthly income, how much you put into your 401k per month, and how much you spend on other needs, they may have a greater appreciation for the times that you get something they want. It also gives you the chance to talk to your children about the type of lifestyle they expect to lead in the future and how much money it will take. 

You all can plan for college

Making a plan for college does not mean that parents pay for it. If you will not have enough money to pay for your teens to go to college, the family can come up with a plan. This can mean having a weekly scholarship hour where the family gets together and helps every high school junior and senior plan for college. Your teens may also get a job and put money away in a high-yield savings account each check to help with college books and expenses. 

They know if help will be required

If you are a low-income parent, there is a possibility that you may not save enough if you are forced to retire early or if you do not get raise. This could mean that you need family help when you are older. Let your teens see how much you have for retirement and what your shortfall will be. This could lead to a long term plan of purchasing a two family home so that you can live with your children but still independent. Allowing your teens to plan to help you will make them feel like they are a part of family decisions and possibly lead to them making good decisions in the future in order to aid you.

You should also consider reaching out to a local financial planning company, such as Gosho Financial Group, for some 401k management tips.