60 Chapter 2 Making Smart Decisions
Developing Stage
School-age children and adolescents bring a new set of circumstances.
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include a larger clothing budget, sports and hobby equipment, lessons and
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for some families is a second car.
During this stage, a spouse who left the workforce may return, either to
satisfy career goals or to supplement income. This change may require at least
a brief return to school to update education and skills. While income may still
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Launching Stage
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Families enter this stage as the children leave home for college, jobs, or
homes of their own. During these years, job advancements often bring higher
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In some families, this is a time when aging parents become a concern.
Those in this situation are often called the sandwich generation. Parents find
themselves sandwiched between college-bound teens and their own aging
parents. Both financial and emotional demands are great when this happens.
Aging Stage
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Children have left home, creating a situation called the empty nest. Many
parents become grandparents. Married couples often renew their focus on
each other. Many choose to travel or become more active in the community.
Individuals and couples tend to focus on retirement planning during
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their lives. Those caring for elderly parents may face heavy health-care costs.
Couples need to have reliable health insurance and consider long-term care
insurance for themselves. At this stage, estate planning is important. It is also
the time to review and revise wills.
For most people, this stage marks formal retirement. Some retirees seek
part-time work or volunteer opportunities. For many, free time is a welcome
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a new focus at this time of life.
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years. Security and comfort depend on the financial planning that occurred
in earlier stages. For those who have not planned, the retirement years can
bring financial hardship as income drops. Serious spending cutbacks may be
required, especially if medical costs rise. Retired adults need to review wills
and estate plans and discuss them with their adult children.
FYI
Individuals born between
1989 and 2010 are
known as Generation Z
or the iGeneration.