How to give generously without jeopardizing your retirement
If there’s one thing Southerners are known for—it’s our big hearts. We don’t think twice when it comes to slipping some cash to the grandkids or helping a friend through a tough season. It’s just who we are.
While giving is a virtuous thing, generosity without a plan can quietly chip away at your long-term financial security. This is especially true if you’re nearing retirement or already living on a fixed income.
So how do you keep giving in a way that brings you joy, without putting yourself at risk? Here are a few guidelines to keep in mind.
Know Your Giving Personality - Some folks are “helpers” who give often in small ways. Others prefer a few large gestures a year like covering a semester of college or paying for a mission trip. Neither way is wrong, but knowing your style can help you build giving into your budget without surprises.
Extra Tip: Use your SAFE online banking or mobile app to categorize your spending and see what you’ve really given over the past year. It’s a great way to gain some insight into your individual gifting patterns.
Separate Your Giving from Your Savings - This is a small mental trick that can yield big results. Set up a separate savings account labeled “Giving Fund.” Each month, move a set amount into it. That way, when a need arises, you can say yes confidently knowing you’re not dipping into your emergency or retirement savings.
Need help setting one up? SAFE can help you open a flexible savings account that can be named and managed in online banking with just a few clicks.
Don’t Be Afraid to Set Boundaries with Family - This one’s tough. We all want the best for our kids and grandkids, but giving too much too often can become a pattern that strains both your finances and your relationships.
Extra tip: instead of always giving cash, offer to match their savings goal or help them open their own account. If they’re trying to buy a car, maybe help them understand credit, and co-sign only if it truly fits your financial plan.
We’ve helped many members find creative ways to support family. That might be in the form of a small loan, or simply just good advice and a nudge in the right direction.
Give with Purpose, Not Pressure - You don’t have to say “yes” to every GoFundMe or community cause. Give where your heart leads, but know it’s okay to say, “This year we’re focusing our giving on our church and helping our granddaughter with school.”
When you create a simple giving plan (SAFE help with that, by the way), you feel more at peace about what you can and can’t give.
It's Okay to Ask for Guidance - Your lifetime of hard work, saving, and smart choices deserves to be protected. Generosity should never come at the cost of financial stability. Before you give a large gift or tap into savings, it’s okay to seek professional advice. SAFE’s full-time financial counselor can help you make decisions that honor both your giving spirit and your financial future. Best of all, SAFE's financial counseling services are available at no cost you!
As you’re thinking through your financial gifts, remember, your time, wisdom, and presence mean just as much (if not more) than a check. So, give from the heart, but give with a plan. It’s the smart way to help others forge their financial path, while still feeling good about your own.