SHOULD YOUR ADULT CHILD PAY THEIR WAY?
When to Close the Bank of Mom and Dad
While young adults of previous generations were usually left to sink or swim after leaving home, it is now commonplace for parents to provide financial support to their adult
child for financial support in the future. So, confirm your retirement goals are on track and that your contributions are affordable.
It’s also worth considering whether you’re preventing your adult child from learning important life lessons. If they struggle to budget or habitually misspend money, regularly bailing them out hurts them more than it helps. And don’t forget about the emotional component of your financial support. If you feel like your kids are taking advantage of you, then something is wrong and needs to change. Whatever your reason for reconsidering, prepare for a challenging conversation. You may feel guilty, and your child may become very upset. Take time to understand your reasons for ending or reducing your support and plan what you want to say. Most importantly, give your child time to process the news financially and emotionally. Avoid ending support suddenly if possible so they have time to prepare for their future finances. Wanting to help your kids is normal, and it can be hard to let go or watch your children struggle. But limiting your support, saying “no” to monetary requests, and putting your needs first is okay. Especially if your assistance has put your financial, mental, or emotional health at risk, it’s time to reconsider what works best for the entire family.
kids. A 2018 Merrill Lynch Age Wave survey found that 79% of respondents help their adult children financially, providing an average of $7,000 annually. Many parents feel it’s a moral obligation. But how much should you support your adult child — and how do you know when it’s time to stop? Modern parents have good reasons to help their kids into adulthood. Housing prices have increased, entry-level jobs often pay poorly, and many young adults struggle with student debt. Parents often support their kids temporarily until they get on their feet. But months can turn into years without significant progress toward self-sufficiency. One way to tell it’s time for a change is by looking at your own finances. Are you meeting your own goals? If you’re struggling to pay bills, racking up credit card debt, or failing to save for retirement sufficiently, you’re helping your children to your own detriment. Further, you risk reversing the arrangement, thus relying on your
SIMPLE WAYS TO COMBAT RISING COSTS
These Strategies Can Save You Money
Amid rising inflation, it might seem impossible to save money. Costs are rising across the board: groceries, housing, energy, even transportation. According to the U.S. Bureau of Labor Statistics, we’re now paying six percent more for products and services as compared to March 2022. If more money is being spent on hiked-up prices, cutting costs where possible might be just the ticket. Try Fine Dining at Home We get it. Cooking every night can feel like a nightmare, especially if you’re accustomed to dining out regularly. Consider replacing pricey date nights with cozy at-home dinners where you amp up the atmosphere. Light a few candles, play relaxing music, sip wine, and cook a meal to remember. This will not only save money, but you might discover a new love for cooking! Cancel Any Unused Subscriptions If signing up for free trials and forgetting to cancel in time were a crime, we’d all be
guilty. Many don’t even fully know what paid subscriptions we have! Do an audit of all your subscriptions and cancel the ones you don’t need. You might find some prices have been increased without you knowing it. It’s shocking how much you can save by canceling unneeded or costly subscriptions, be it streaming, apps, or in- person memberships. Shop Strategically Amazon may be a fantastic convenience, but it isn’t necessarily the least expensive option. While you may be saving time when you shop online, you may not be saving money. Particularly in times of inflation, you should search for the best deals instead of taking the quick and easy way out. Renegotiate Your Bills Many times, all it takes is a call to a provider (cable, streaming, cellphone, and other companies) to lower your monthly bills. You’d be surprised how easy negotiating
your payment can be. These companies will do most anything to ensure you don’t leave, and they often give you a lower price without haggling! Times like these can be challenging, especially for those already counting their pennies. But with a few changes, you can help ensure that inflation won’t empty your pockets. All it takes is thinking outside the box, some budget planning, and sticking to it!
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