The other day a friend of mine and I were talking about our prospective futures and how to set up the future for our children. Whenever we speak about kids, inevitably we are speaking about the future. First, it is my opinion that many opt to have kids later and later on life. I think the vast majority of us live on the razors edge of success and failure. One wrong step or the inopportune “bump” along the way can have catastrophic results. With all of that being said, let’s get into it.
Couples have children later on in life, they want to have some career stability and they need to be financially able to care for their kids. So, the majority wait. We wait so long to have children, that by the time they have their own children we are so far along that the ability for us as grandparents to step in and help to raise the kids could be too far gone. As we age, our endurance and stamina begin to wane. So, like us, our grown kids now rely on outsourced childcare to care for their kids, so they can continue work and provide.
If more had their kids when they were in their teens or very early 20s, by the time they were in their late 30s or early 40s, then the grandparents would be much younger as well. If the grandparents are younger, more able bodied and can continue to work, the family would begin to rely on itself. I believe that people by the time they are in their 40s are much more financially sound than when they were in their 20s. At the same time, having kids younger could pay dividends, as long as the parents are able to provide support as well. If you have kids in your teens or very early 20s, by the time you enter your late 30s and 40s, you also become much more fiscally fit and able to help your own kids with their children.
So, once you enter your 40s, your kids are either heading off to college or starting their own careers. If they had their kids before college or even in high school, and you as their parents were able to help out with the baby or babies, then they could still enter the workforce, knowing that their kids are being loved and taken care of, without having to pay astronomical rates and have strangers virtually raise their kids. From doctors appointments, to vacation and sports. The grandparents could step in, while the parents work toward their own financial freedom. Just think of the money that a family could save with this model, simply cutting out daycare and childcare.
I don’t know, but I think this would also allow more to retire early, since the majority of the cost is paid at a younger age, rather than later on in life. This is also dependent on parents remaining married.
The one caveat that this whole idea depends entirely upon, is that the family would have to stay in the same area. I understand that this might not be entirely doable. Also, there would have to be stable work in that area as well, so families could stay together.
Lastly, life isn’t a fairy tale. But I do think the more you can do when you are younger, the easier your life becomes much faster. If the majority of your costs begin to be paid when you are in your early 20s, such as purchasing a house or paying off college loans, by the time you’re in your 50s, you could own your home, that is if you take the entire 30 years to pay off your mortgage. If you had your kids when you were between 17-20, by the time you are between 35-38 your kids can have their kids and so on and so on.
Just an idea, “I could be completely wrong”.
Let me know what you think?