A new report reveals that 50% of parents financially support adult children, up from 45% in 2023, due to rising housing costs, student debt, and expenses. Many parents sacrifice their own financial security, spending an average of $1,474 per month on their children. Factors like high housing costs and student loan debt contribute to this trend.

For parents like William, balancing financial support for adult children with retirement savings can be challenging. Setting clear limits and timelines, tying support to specific goals, and involving partners in the conversation can help navigate this delicate balance. It’s crucial to ensure generosity doesn’t compromise your own financial future.

Supporting adult children isn’t necessarily a mistake, but as retirement approaches, transparency and a clear plan are essential. By establishing boundaries, setting goals, and involving partners in the discussion, parents can support their children while safeguarding their own financial well-being.

Read more at Yahoo Finance: I’m 60, my adult daughter lives with me and I regularly give her money. Am I doing too much?