When do you stop financially supporting your grown-up children?
In a publication in The Press & Journal, Chartered Financial Planner Alana Davidson considers the often grey area around money and adult children.
A recent study reveals that one in 10 parents has taken on a second job to financially support their children, with 75% continuing to provide financial assistance even after their children have left home. Amid the cost-of-living crisis and the impact of COVID-19, many adult children are increasingly relying on parental support. Saga Analysis indicates that 64% of parents anticipate the current cost-of-living challenges to affect their adult children more than COVID-19 did.
The prolonged financial dependence of some adult children raises concerns about their future financial independence. While supporting children is a natural inclination, parents face the dilemma of balancing their own financial well-being. Strategies such as taking on additional jobs, returning to work, or dipping into pension funds are common, but it's crucial for parents to assess the best approach for both themselves and their children. Establishing boundaries and open communication can help navigate this delicate financial situation, ensuring a balance between supporting adult children and safeguarding one's own financial future. Parents are advised to consider seeking guidance from financial planners to make informed decisions about the long-term impact of supporting adult children on their financial stability.
Read the full article here.
Editor's Notes
Published in The Press & Journal August 2023.
The information provided is the opinion of Alana Davidson, Chartered Financial Planner at Acumen Financial Planning and should not be taken as advice.
