Topic Title: Reader Case Study - Child turned 18, now what?
Life Situation: Single, age 41, one 18-year-old child who lives at home, Ontario Canada.
Gross Salary: $44,000/year
Take-home Salary: $2,873/month
Other Income: $100/month (government benefits - GST credit, climate incentive, etc)
Current expenses: $3,076/month (I averaged everything out over the last 12 months)
Rent: $1,833 (includes heat, water, electricity)
Tenant Insurance: $14
Internet: $63
Phone: $34 (this is for two plans)
Groceries: $416
Restaurants/take-out/grabbing coffee: $130
Household: $70 (anything from toilet paper to a patio set)
Clothing: $64 (for both of us, includes shoes, coats, etc)
Toiletries: $12
Haircuts: $20
Transit: $13
Gifts: $63 (most of this is my daughter’s birthday and Christmas)
Daughter’s spending: $100 (going to the movies/out to eat with friends/school events)
Spotify/Disney: $25
Medical/dental: $95 (medication, dentist, eye exams, eyeglasses, etc)
Car rental/gas: $88 (occasional trips out of town)
Other: $36
Assets:
$130,000 Tax-Free Savings Account
$10,000 Registered Education Savings Plan (for my daughter)
$3,000 Chequing Account
Liabilities:
No debt
Specific Question(s):
My daughter recently turned 18, which means I no longer receive the Canada Child Benefit each month. As a single parent with a relatively low-income, I was receiving about $600/month. $100 of that went toward monthly expenses and the other $500 was going into my TFSA and RESP.
Without that benefit, I’m now spending about $100 more a month than I’m bringing in. And I no longer have extra to contribute to savings.
I am actively looking for a new job with a higher salary, however, I’m picky. My current job is a relatively cushy 8-4 Monday to Friday office job. Never work weekends, evenings, or holidays, have decent PTO and benefits. The office is within walking distance which means I don’t need a vehicle or even a transit pass. I enjoy my work for the most part, like many of the people I work with, and it’s fairly low stress.
My daughter is also looking for a job so that she can cover some of her own expenses and save for college. She plans to work for at least one year before going to school.
Question: Am I okay to keep trucking along like this? Should I try to retrain or go back to school in my 40s in hopes that it will increase my income? If I don’t touch the TFSA and let it grow until I’m 65, will I be alright considering CPP, OAS, and GIS? My calculations show that at 5% interest, I will have about $440K by age 65 if I don't make any additional contributions, which gives me $1,466/month at 4% withdrawal. With CPP etc I think I will receive around $1,500/month. So roughly $3,000 total which is what I'm living on now.