When our relationship to our money is poor, it can cause anxiety, tension, or worse.
For parents and their money, a key factor to keep in check is: Their adult kids.
A significant trend occurring in the last 20 years is adult kids delaying their financial independence.
Parents, Their Money, and Adult Kids
Parents think their adult kids should be able to support themselves by 25. Their adult kids? Their adult kids think they should not have to support themselves until until they are 27.
Also, parents think their adult kids won’t actually be able to support themselves until age 30. Their adult kids? Their adult kids think they won’t be able to support themselves until 32.
How many of these parents have the financial capacity to support their adult kids?
Considerations For Parents And Their Money
How many parents are able to:
1) Contribute to their retirement accounts at the maximum amount allowed
2) Stay out of debt
3) Live below their means
4) Keep marital quality unaffected due to any resulting family discord.
Couples say the most frequent arguments are money (at 41%), household chores (at 35%), and quality time together (at 30%).
Does financially supporting adult kids have no effect? Perhaps for some. But a strong case might be made that your marriage should precede financially supporting your adult kids.
Next Step
Ready to take the next step and work with a fee-only CFP? Reach out to schedule a Discovery Meeting to learn more.
(Data Source: Marketing and Research Resources 1/10/2014 survey report with a sample size of 1,000 couples)