Looking for an unconventional Father’s Day gift for Dad in 2019? With Father’s Day approaching on Sunday, June 16, financial freedom has become a major cause for concern for the millennial generation, as social security is evaporating. So many Father’s Day factors rely on financial freedom, including gift-giving and the ability to spend a little extra cash to honor your dad on his special day.
The numbers being provided by Incharge.org are daunting to say the least: “People born in 1940 had a 92% chance of making more than their parents, according to a Stanford University study. People born in 1980 have a 50% of making more than their parents, and the chances have continued dropping every year since then.”
“It’s no coincidence that median real income for men has been on a 45-year decline. Adjusted for inflation, it was $53,609 in 1972. It was $52,146 in 2017, the most recent year reported by the U.S. Census Bureau.”
Gifts of tangible items are great, but if you are in a pinch and have always appreciated your father’s financial advice, maybe the opportunity is right to repay the favor (see what we did there?). With that in mind, here is some Father’s Day financial advice to give back to Dad on this holiday.
Pay Some Household Bills, Help Keep Monthly Bills Down
So obviously this one is geared toward those in their early 20s still living at home. Even a one-time monthly payment of the electricity bill could be more appreciated than another tie or pair of socks. Or you could turn out a light left on every once in awhile, or reduce the amount of yard work around the house so Dad can take a mini-vacation to reset.
Help with Student Loans
For the even younger demographic, if you are currently in school and have student loans that your dad has agreed to pay, you could surprise him by saving up some extra cash to make a payment yourself. Do this by working a few more hours on your shifts for a couple weeks, selling some old sports equipment that you no longer use, or picking up some odd jobs off job boards. If you need help with student loan payment plans, we’ve got you covered.
Give Dad a Written Financial Plan, and Hire a Financial Planner
This idea comes from Forbes: “…if your dad doesn’t already have a written financial plan, consider giving him one. Millennials are poised to be the next “sandwich generation,” providing for their children while also having to care for elderly parents. Couple that with the fact that the majority of working Americans are underprepared for retirement or a costly long-term illness, and it makes sense that giving a parent the gift of a financial plan can be a good move for Millennials.”
“By hiring a competent professional on your parents’ behalf, you are making a generous yet non-intrusive effort to help them. Give them a card and a note saying the service of a carefully researched professional has been paid for and that the financial planner is obligated to keep the entirety of the conversation private. Whether they choose to follow up is out of your control, but you can feel good knowing you took the thoughtful step of caring for them in a meaningful way.”
“Look for a local Certified Financial Planner® who offers the hourly consultation option. Many advisors do not offer hourly or written financial plans (their focus is on investment management rather than planning services); so don’t be surprised if your request is rebuffed, but keep looking—there are planners out there who will find joy in helping your family have a better financial life. Carefully check background and references of any advisor you’re considering.”
Get Your Own Finances In Order
This one comes from Policygenius, where the site lists several ideas from savings plans to retirement methods, and includes ways to pay down debt, similar to Golden Financial Services’ Snowball Calculator:
“Get financial protection. Life insurance is a financial safety net for families. If you die, your beneficiary gets a lump sum of money so they can still pay the bills and care for the kids (aka Dad’s grandkids).”
Save Early and Often
If you responded to this advice from your father with “Ya ok, Dad.” you probably aren’t a terrible son or daughter and probably not alone, but there are layers to this advice that are actually pretty significant. From CNBC:
“Workplace retirement plans are especially important if your employer offers matching contributions. The average employer matching contribution at a large company 401(k) plan is 50 cents on the dollar on the first 6 percent of pay, according to Vanguard.
People starting out in their careers should build a budget, and aim to contribute to their retirement plans up to the employer’s match…”
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