After months of being out of college and relentlessly job searching, your child finally landed a pretty sweet gig in his or her respective field. The schedule is perfect, the benefits are amazing and the pay is great. Your kid seems happy and ready to tackle adulthood and all it entails, including moving out and getting off of all of your policies and plans. From cell phone service to auto insurance, your child now has the means to pay for these expenses, and allowing them to do so will inadvertently give you a much needed "raise."
You've been hoping and praying this day would come sooner rather than later. Not that you didn't love providing for your child—after all it comes with the parental territory—but the extra money you will save each month will only make your long-term financial goals of retiring debt-free more attainable. Some of you may have already had your children reimbursing you for these amenities, but it's much more tangible when they are officially set up on their own. Below are some tips and things to consider as your child makes the official transition into adulthood.
Selecting a Policy
Whether for health, life or auto insurance, selecting an insurance policy is never easy and there's a lot to consider. When it comes to auto insurance, it’s important your child shops around for the best deal. They’ve been spoiled by your low rates, which come with age, experience, marriage and various other qualities your young adult probably lacks. Discuss the importance of getting various quotes before committing to a specific plan. The same goes for health insurance. Although it is most likely part of their new benefits plan with work, there are undoubtedly multiple options they have from which to choose. Walk them through it and help them determine what best fits their current and near future needs. Between the fine print, deductibles and premiums, there's a good chance your 20-something won't be positive where to start.
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