NMW: Supporting Grown Kids Through Financial Independence Strategies
NMW: Understanding Financial Support for Grown Kids
In today's economy, parents often find themselves helping their grown kids financially. According to a report from the Pew Research Center, about 6 in 10 parents provide support to their young adult children, shedding light on the multifaceted nature of this issue.
Balancing Support and Independence
Strategies for striking a balance between assistance and fostering independence are imperative. Mindy Oglesby, a certified financial planner, advises that setting expectations and teaching budgeting skills early on lays the groundwork for financial independence.
- Encourage Self-Sufficiency: Implement budgeting strategies and savings habits.
- Contributing to Households: Most young adults contribute financially when living at home.
- Targeted Support: Assist with specific expenses like down payments or essential bills.
Long-Term Strategies for Financial Growth
It’s vital for parents to assist kids in a way that promotes wealth building. According to Lynnette Khalfani-Cox, strategies like purchasing property can provide young adults with valued assets. Parents should also ensure their financial health before offering support.
- Wealth Starter Kit: Invest in property or retirement accounts for your children.
- Gradual Withdrawal: Reduce support slowly as children achieve milestones.
- Set Clear Expectations: Define timelines for when support will cease.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.