The Biggest Raise You'll Ever Get

I found this piece from Money magazine (and its funny title) to be quite an interesting take on a personal finance issue. So what do they say is the biggest raise you'll ever get? The summary:

The oldest of my three children started college this year, prompting me to flash forward to the day when my kids have all left home and the expenses of child rearing - from piano lessons to orthodontics, summer camp to undergrad tuition - are firmly behind me.

Yes, this time of life may be bittersweet. Reduced expenses will come with the emotional baggage of living in an empty nest and experiencing a few more aches and pains from aging. Financially, though, this turning point may amount to the biggest pay raise you or I will ever get.

Yes, kids are expensive and once they are off and on their own, it IS likely that your finances will be in a position to improve greatly. It's a wonderful time to kick the pay off all debt/save more/invest more plans into hyper-drive.

Then again, you don't need to wait so long to get a raise. Instead, plan to ask for raises at work on a regular basis. And when should you ask? When you can show that you deserve a raise.

Comments

[That One Caveman]

My parents commented the same thing about when I finished college and went out on my own. One thing to remember when your children move out: Adjust your tax withholdings! My parents forgot to increase their withholdings after I left and they got socked with a huge tax bill because of the loss of me as a dependent.

[jhawsey]

Maybe this is just me or just that my kids are too young to cost much yet (3 months and 21 months) but I haven't seen them costing too much yet. On clothes we have saved a ton by getting hand me downs from friends that are no longer having any kids. Eating out, the older kid just eats off of our plate for now. Also we don't buy toys because friends and family have already given us too many to deal with as it is. The only real thing so far is diapers and we are almost out of the woods on that with one of them. Of course we are hoping for 2 more so things will start adding up.

I know I haven't hit the big things like braces, sports or college yet. I am a federal employee so for braces I plan to join one of the federal employee dental plans which pays for braces as well so that cost won't be too bad. For sports, we don't want our kids being too busy to enjoy life as children so we only plan to let them be in one sport per year until they are in high school. For college we are only going to save up what it would cost to send them to a state school which even though it has gone up still isn't too bad in Florida. Both my wife and I paid for our own college tuition and lived with our parents so I feel I will be giving them more than I was given by covering tuition. Also we are going to home school our kids so that cuts out some costs because our kids wont' be seeing everything the other kids have and want it (plus we don't let them watch TV with commercials).

[rwh]

jhawsey:

I was where you are about a dozen years ago. Believe me, they do get more expensive as they get older. And good luck with holding them to one sport a year, even at a young age. If they're like most kids in elementary and middle school, they will want to try everything and I would encourage you to let them. But you do have the right to complain about it:)

[bob]

maybe it is just me. but these articles irritate me. I enjoy money magazine, but.

look forward to a pay raise when the kids leave.
really? WOW.

You know, there will be a large pay raise when your spouse dies too. Half the expenses. And if you don't eat or drive or enjoy life you experience a pay raise as well.

How about this. How about appreciating the fact you have expensive children, and relishing the expenses they incur. That is the reason for money in the first place. Nothing is more important that friends and family, and Kids are just absolutely the most kick ass thing ever invented.

I love that my kids cost money. that means we live. we do things. experiences.

I'll take young kids that are expensive over empty nest with extra money any day.

You want a pay raise. I agree with you FMF. Go get a real one.

[rwh]

I agree I'm in no hurry for them to leave the nest. It's only money. My kids are the best thing I've ever done.