Should You Financially Support Your Adult Children?

From allowing their kids to live at home to paying for their cell phone bill or even footing their student loan payment — parents are giving grown children more money than ever before.

Why such large numbers?

High student loan debt, low starting salaries, and steep housing prices can make finances challenging for many young adults. And parents have a hard time watching their children struggle with money.

Most parents intend to provide financial support until their children are in a better financial position. But some experts warn that providing ongoing financial support to adult children can be harmful to everyone involved.

It could significantly delay retirement for the parents. And, in some circumstances, it can create an unhealthy financial dependence on parents for years to come.

The answer is — it depends. Each child, relationship, and situation is unique. When you’re deciding whether to provide financial support to an adult child, understand your position as well as your child’s.

Your financial support could provide a good start to your child’s self-sufficiency and independence. But it could also keep them from learning valuable life lessons, thus slowing their ability to become self-reliant.

Just as important, if not more so, providing financial support could significantly impact your financial future.

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