Dad, can I borrow $500?

You’d expect your teen to hit you up for cash, but what about your 30-year-old son?

Even if your grown children have picked up excellent money habits from you over the years, the current economic situation and ‘modern’ life make it very difficult to hit the same milestones you did at their age.

That said, should you ‘subsidize’ the lifestyles of your adult children?

Although it’s tempting to help your children if you see they’re struggling, proceed with caution.

It’s one thing to give money for an unforeseen car repair while your child is going through college and working a part-time job. It’s another thing to pay part of their mortgage while they purchase take-out nightly, rack up credit card debt and make unnecessary cosmetic renovations to their home. Context is everything.

Remember, handing your children money won’t help them build financial skills. In fact, you might actually be unintentionally harming them!

If you help them maintain a certain standard of living, what will happen to them if you can no longer fund their lifestyle? They may run into real trouble, racking up debt to keep afloat. Teach your child to live within their means, wherever possible.

If you want to help your adult children with something specific(like getting a foothold in either home ownership or healthcare costs), set a financial timeline in stone.

In writing, offer to supplement their income for a year or two. This way, you can still assist, but they’ll understand this is temporary and need to be wise in how they use your gift.

An even better idea is getting in touch with a financial planner to discuss your needs (and their needs). A tailored plan can help you and your children navigate their financial future and set them up for success – with or without you.

I can offer advice on that! Give me a call at (330 836 7800 Ext. 1) or set up a time convenient for you in my online scheduler and I’ll get you started with a 15-minute consultation. https://go.oncehub.com/LeeHyder