Quote Of The Week: When Helping Adult Kids Hurts Your Retirement

“Parents are spending $500 billion annually to support their adult children — two times the amount they’re contributing toward their own retirement savings.”

Betsey Guzior, “Parents contribute more to adult kids than retirement savings,” The Business Journals, October 4, 2018

The Takeaway: Almost 80% of parents provide some financial support to their grown kids ages 18 to 34. The most common expenses they help with are food and groceries, cell phone bills, car expenses, school, vacation, rent and student loans (see chart below).

Helping out your family is great, but it’s not wise to let it get in the way of saving for your own retirement or covering your own living expenses. There’s a fine line between “helping” and giving the kids so much they take you (and your money) for granted. The best gift you can give your kids is a lesson on how to live within their means.

Click here to check out our earlier article on “Cheat Sheet: When Is It OK To Help Out The Kids?”

 

Data from Merrill Lynch/Age Wave research.

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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