Raise Children to Decrease Retirement Needs

Image via Wikipedia‘Finance + Family are going well’ thats the short and sweet message floating around the articles written by experts these days According to a latest article by Scott Burns modern parents can reduce their retirement worries if they raise their children. How does the cost of raising a family affect your retirement planning?

Scott uses an interesting mathematical derivation to arrive at the result. Parents, focus on their expenditures while raising kids (primarily their standard of living is affected) and this standard of living carries on once their job is over.

In mathematical terms for any household the cost of living is the square root of no. of people in the household.

The above derivations show that the cost of living is accounted for by 30% when parents have 2 children. So husband and wife contribute to 70% cost of living.

Scott has used another elaboration to explain his logic. For more on the interesting piece visit dailybreeze.com website here.

Posted by dsharma in Culture, Family, General | Trackback |