You Became an Empty Nester…Now What?

Empty Nester: a parent whose children have grown up and left home.

Is this the beginning of a new chapter of your life as your kids go off to school? If so, you may find yourself facing a significant shift in your financial landscape. Some of the big changes you might find now that your children have left home could be:

• Your time – wait, we don’t have to rush around to recitals and birthday parties anymore?
• Monthly bills such as food, gas, and utilities
• Home size and maintenance
• Insurance costs

 

After dedicating so much of your life (and your money) to your adolescent children’s needs and wants, now is a great opportunity to reevaluate your finances and ensure that you can enjoy this chapter – and many more!

 

One major change you might find when you become an empty nester is the amount of free time you now have. Instead of your spare time being filled with carpools, sporting events, and your kid’s extracurricular activities, you may have more time to spend doing what you love. When you look at your budget, factor in what you may spend on hobbies and leisure that you weren’t doing when your kids were home.

 

Now that your household is down one or more people, your monthly bills could see a big shift as well. With less people using electricity, water, or gas, those bills could decrease – freeing up more of your hard-earned money in your budget. Your grocery bill could also see a big change, with less mouths to feed. Take a look at your bills prior to becoming an empty nester and what you begin to pay once you become one. Decide the best uses for the freed-up cash, whether that be add to savings, lower debt, or use it to enjoy your hobbies.

 

With less people living at home, it could also be a great time to determine the house size you need. You could downsize, giving you less to maintain, or rent out the spare room to increase your income each month. Another factor to think about is the maintenance of your home you will need. If you relied on your child for things such as yardwork, will you need to hire someone to help with that, or would downsizing to a house with a smaller yard be beneficial? Whatever route you decide to take, make sure to account for that when evaluating your finances.

 

Another big change you need to consider is your insurance costs. Will your child remain on your health insurance for as long as they can? Or will you be removing them and lowering that cost? Will you keep them on your car insurance, or will your auto insurance now be just for your vehicles? Talk to your insurance agent to see what the best options may be, and how that will affect your monthly budget.

 

Now is an exciting time for you and your adult children, that comes with a lot of changes. Figuring out how these changes will impact your finances early can help you save for your future, lower debts, or simply enjoy your time. To help you prepare for this chapter in your life, we have a budget tool available that can help you track and better understand your finances.

Download the Spending Plan Tool

As certified financial coaches, our staff can also help you build a budget and plan for your empty-nester stage of life! Contact us any time to get started.