Financing Your Life A Guide to Controlling Your Finances, Today
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Between a rough job market the past decade and the desire to give our children more than
we had, many people are still financially supporting their adult kids. In fact, according to
MoneyTalksNews.com, roughly 61 percent of parents have given their adult children
support in 2015.
Generally, this isn’t a situation that can continue indefinitely, especially if supporting your
kids means that you are ignoring your own savings and retirement planning needs. That
doesn’t mean you have to pull the plug on your child’s extra support without warning,
however. Here are four tips to help you and your child adjust to the change.
1. Meet existing promises but don’t make new ones. If you’ve made certain promises to
your child and he or she has made plans according to those promises, it might not be
possible for you to just cut the financial cord. Instead, consider the obligations you’ve
already made and explain to the child that you won’t be able to help beyond those
obligations.
2. Taper off support gradually. If you’re giving your child money on a regular basis,
suddenly stopping those payments might put them in a more difficult spot than you
want. Instead, make it clear that you’re going to give them less and less money over a
set period of time until you’re finally not giving them any money at all.
3. Let them know your financial situation. Many parents get themselves into trouble
when they aren’t completely honest with their children about the burden created by
this continued financial support. Let your adult child know how your savings and
future plans are being impacted by the support they’re receiving so they understand
your need to stop funding their lives.
4. Help your child with his or her financial planning. By going over your child’s budget
with them, you can help them find ways to cut their spending and more effectively use
the income they generate on their own. You might even find that with a more efficient
budget, they don’t actually need your help at all.
You shouldn’t have to sacrifice your retirement and financial stability for your child’s. Once
they’ve reached adulthood, help them achieve true independence and self-reliance by
cutting the financial cord and letting them test their wings.
