From Here to Financial Happiness

Day Fifty Three The Kids Are All Right

Are there children – either your own or somebody else's – whom you'd like to help financially? If so, what sort of assistance do you want to provide? List the children you would like to help, which goals you're looking to help with, and how much you are willing to commit, either as a lump sum or a monthly investment.

Who	Why	How Much

You might be aiming to help with a house down payment or a car purchase. But in all likelihood, the biggest‐ticket item is college costs. If that's on your list, it's important to figure out the best way to help. Here's a simple way to think about it:

• If you're one of the parents and your combined income is less than $100,000, there's some chance your child could receive financial aid, so you should probably focus on shoring up your own finances by building up retirement accounts, buying a home, and paying down debt. These steps will get you in good financial shape, so you'll be better able to help with college costs once the bills start rolling in – plus, they shouldn't hurt your aid eligibility.
• If you aren't one of the parents – but the parents' income is less than $100,000 – you should keep the money earmarked for college costs in your own name, and then make financial gifts to the parents once the child involved is in college.
• If you're one of the parents and your ...