Parents grapple with providing financial assistance to adult children, balancing fairness and maintaining healthy relationships
From Yahoo Finance: 2025-05-20 12:15:00
Parents are grappling with the dilemma of how much financial assistance to provide their adult children. Balancing fairness among multiple children can strain relationships and retirement planning. Communication and planning with a partner are crucial to avoid financial sacrifices and maintain healthy family dynamics.
A new study shows that nearly 50% of parents who financially support adult children sacrifice their own financial security. Deciding on the extent of assistance, whether essentials or future goals, is essential. Fairness must be considered in distributing aid based on individual circumstances, such as job loss or business struggles.
Financial professionals caution against enabling long-term financial dependency in adult children. Parents must assess the impact of their aid on their child’s financial behavior and motivation. Setting clear limits, communicating financial goals, and offering support in non-monetary ways can help establish boundaries and encourage independence.
Communication, setting boundaries, and offering non-monetary support are key in assisting adult children without jeopardizing financial health. Parents must align on support boundaries and expectations to avoid becoming a 24/7 ATM. Providing specific assistance, emotional support, and encouraging independence can help children succeed without creating dependency.