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As children head off to college or start their careers, parents face a major life transition of their own: becoming empty nesters. Adjusting from a full house to an empty one requires thoughtful preparation. Many young adults face barriers to independence and may return home temporarily or need additional support to gain their footing. In nuclear and blended families, it’s important to avoid making one child feel pushed out or another favored, as sibling rivalries—often more intense in blended families—can add to the challenge. While the journey may not be as straightforward as it once was, careful planning can help make the transition smoother for everyone.
This is a great time to reassess your financial plans, retirement strategies, and overall wealth management goals. You may also want to review your day-to-day money management—does your “Yours, Mine, Ours” approach still make sense now that the kids are grown? By planning ahead, you can support your children’s next steps while staying on track with your own financial future.
Having a well-structured plan in place can help you navigate the transition to an empty nest with confidence, ensuring your family’s long-term well-being while creating opportunities for a fulfilling future.
Acknowledging Your Mixed Emotions
As you transition into your role as parents of independent, adult children, it’s natural to experience a mix of emotions. This is an exciting time; you’ve successfully raised a family, and now you’re entering a new chapter filled with fresh opportunities and experiences.
You and your spouse may have differing views here, and respecting each person’s perspective is important. My wife Cara and I struggle with this sometimes. Whereas she considers having children return home during early adulthood “bonus time” with them, I’ve been looking forward to the next phase in our lives. I enjoy spending extra time with my kids and step-kids and don’t want to wish that gift away, but I also welcome the day when I can step back from managing a full household.
Moreover, you and your spouse may have different experiences. One of you may be facing an empty nest for the first time, while the other has already been through it with older children. You may be navigating co-parenting dynamics with an ex-spouse while balancing your financial and emotional responsibilities.
No matter your situation, it’s normal to feel a mix of emotions—apprehension, sadness, excitement, or even relief. But remember, you will always be a parent; your role has simply shifted. Your children have a bright future ahead of them, and so do you. By accepting these emotions and focusing on the possibilities ahead, you can move forward with grace, pride, and optimism.
Blended Family Financial Planning for an Empty Nest
As children move out, blended families may face some unique financial considerations. It’s a great time to reassess what this means for your finances. A revised budget should reflect reduced household expenses, such as groceries and utilities, while accounting for possible new costs, like helping kids get moved and set up in their first apartment or dorm room.
Key Financial Considerations
- Adjust Your Budget for Changing Expenses and Income:
Review your financial situation as your household size changes. Consider how reductions will impact your income if you receive family support payments. Likewise, if you make child support or alimony payments, now is the time to reassess your expenses as your children gain independence. - Maximize Retirement Contributions:
If you’re 50 or older, use this time to contribute extra money to retirement accounts. You can take advantage of the IRS catch-up contributions rule to boost your retirement savings. - Pay Down Your Mortgage Before Retirement:
Reducing or eliminating mortgage debt can help provide greater financial security. Consider increasing payments to lower what you owe, which will allow you to approach retirement with fewer ongoing housing costs. - Diversify Investments for Long-Term Financial Well-Being:
Evaluate your investment portfolio to make sure it still aligns with your evolving financial goals. This can be a good time to diversify assets further and explore new financial products, such as those that produce income. - Update Your Estate Plan to Reflect Your Goals:
Review and revise your estate plan to align with your current wishes. Make certain all beneficiaries, powers of attorney, and asset distributions reflect your legacy objectives and protect your family for the long term.
This is the perfect time to revisit your financial future. Does your current plan align with this new phase of life? If not, consider how you can adjust your savings and investment strategies to reflect your evolving needs. Take advantage of the extra room in your budget and the mental space to look at your ambitions again.
Use this time to explore new financial opportunities. Consulting with a financial advisor to reassess your investment portfolio and retirement plan can help you be better positioned for this new chapter. By proactively managing your finances, you can make the most of the empty nest phase and build a strong foundation for the future.
With fewer daily parenting responsibilities, this is a great time to redefine and explore your relationship as a couple. Revisit your Unified Financial Vision—what dreams and goals have been waiting for this moment? Consider how you’ll reallocate your time and resources, whether it’s exploring new hobbies, traveling, or finally pursuing long-held aspirations.
There’s no denying that parenthood changes you, so take time to discover who you are now. Connect with long-neglected passions or find new ones and engage with your community in fresh ways. If you struggle to fill the gap left by your children’s activities, remember you’re not alone. It may take some trial and error, but with effort, you’ll find what brings you joy.
Consider hobbies that keep you active and healthy, and prioritize activities that nurture your spiritual and emotional well-being. Engaging in local clubs, volunteer work, or new fitness routines can help you stay connected and fulfilled, creating a balanced and enriching experience as you adjust to life with an empty nest.
Repurposing and Reconsidering Your Space
With your children gone, now is the perfect time to repurpose extra space in your home. Convert a bedroom into a home office, library, craft room, or guest suite for visitors. However, remember that in blended families, it’s important to approach these changes thoughtfully. You don’t want one child to feel alienated or “kicked out” while another still has a dedicated space to return to. Work together to strike a balance that allows you to reclaim your home while also making all children feel valued and welcome.
Downsizing to a more manageable space might also make financial sense, or you may prefer to renovate to suit your new reality. Add that sunroom you’ve always dreamed of to enjoy your morning coffee, create an apartment over the garage for rental income, or make adjustments for aging in place, such as accessible showers and higher toilets. Tailoring your home to your current lifestyle and upcoming needs can enhance comfort and enjoyment.
Stepping into a New Financial Chapter
Whether your kids are on the cusp of leaving or your empty nest is several years away, consulting with a financial advisor can be invaluable. When kids leave home, parenting doesn’t end, nor does the challenge of blending. In many ways, the family unit has become more complex. Adult children develop new expectations about family dynamics, wealth, and fairness, often unspoken but deeply felt. Financial planning helps ensure that both partners’ interests are aligned and that the planned legacy reflects their unique family structure.
Reviewing your financial plan is key to readying your family for this transition. Planning for the future can help replace anxiety with a sense of confidence. From budget adjustments to retirement strategies, a professional can guide you through optimizing your finances during this new chapter of life. Contact us to schedule a consultation, and let us help you prepare for a confident and fulfilling empty nest.
This article was originally published here and is republished on Wealthtender with permission.
