11 Signs Your Retirement Will Cost More Than You Thought

You Spoiled Your Grandkids

It’s easy to fall into the trap of overspending on grandchildren. “Who doesn’t want to spoil the heck out of their grandchildren, especially when you don’t have to change the diapers?” Hayes said.

Grandchildren can bring so much joy, but they also can threaten your nest egg if you travel frequently to see them, take them and their parents on vacation, pay for their college tuition or move to be closer to them, Hayes said.

• What to Do

Have a plan for what you’re willing to pay for before any grandchildren are born. “This protects everyone from the ‘cute’ factor of seeing that baby’s smile for the first time and then sacrificing your own financial freedom in retirement,” Hayes said.

Also, make sure your children know what expenses you’re willing — or not willing — to cover. This is especially important when it comes to education costs. “Make this clear to your children so they can focus on their own financial plan and know what to expect in the future,” Hayes said.