Copyright Goodheart-Willcox Co., Inc. 52 Chapter 2 Personal Financial Planning Figure 2-8 Continued. Financial Aspects of the Family Life Cycle Stages in the Family Life Cycle Career and Income Characteristics Typical Expenses and Obligations Developing Stage Toddler, preschool, and elementary school years Children become primary focus Job advancement likely Increasing income Increasing job responsibilities Move to larger living space Additional home furnishings Property and income tax increases Increased living expenses Retirement contributions Adolescent years Involvement in school activities Preparation for launching stage Continuing job advancement or possible career change Possible return of parent to the workforce Income still increasing School expenses for extracurricular activities Savings and investments Savings for education Charitable contributions Travel Adolescents’ spending Income and property taxes Launching Stage Children leave home Parents adjust to “empty nest” Heavier job responsibilities Peak performance years Income may peak as well Benefits may increase Retirement planning becomes a priority Home improvements or new, smaller home Replacement furnishings Education and tuition costs Travel Retirement savings Income and property taxes Weddings of children Aging Stage Parents focus on each other Children marry Grandchildren arrive Elderly parents may require care Job responsibilities and earnings begin to level off Retirement and estate planning take form Travel, recreation, and adult education Care for aging parents Increased savings and investments Gifts to help children get established Income and property taxes Long-term care insurance Retirement years Establishing new routines, interests, and hobbies Grandparenting Part-time or volunteer work Social Security income Income from retirement savings Wills and estate plans are revised as needed Health insurance Possible relocation to a retirement area Travel Health care and medications Taxes Long-term care