The High Cost of Grown Kids

According to Money’s “Americans and their Money” survey, 38% of people give $1000–$4999 per year to their adult children.  These are not just the margins - this is across the board.

An article on www.time.com/money/page/parentsofadultchildrefinancialsuppot/, states that 25% of adults aged 25-34 still live at home, compared to 11% in 1980.  Only about half of all kids one year out of college, have a full time job.  This is a combination of the economy and the unending support of modern parents.

There is no longer a stigma attached to living at home. Whatever the reason for our kids still being in the nest, we should ask the question “Do grown children benefit from another 3-7 years of nurturing, or are we coddling beyond reason?”  The answer to this question is up to you.

Some thing to consider

·         Will providing money help them become independent, or will it prolong dependence?

·         Reserve your help for needs only not wants.

·         Be frank and state your limits .

·         Is it time for tough love?

·         What are you getting in return?  Charge rent or have an expectation of contribution.

·         Are you giving according to your means?

·         When will the gravy train stop?  Have a clear exit plan.