Every parent wants the best for their child. Even when the child has grown up to be considered an adult, a parent will still keep this concept in mind. Most parents feel that they need to support their children in paying some expenses.
Some might choose to pay a portion of the rent so that their children can live in a safe environment, while others will feel the need to pay for the household expenses so that the child can live a comfortable life. However, most parents will wonder when they should stop catering for these bills.
In a recent study that was conducted among Millennials who were aged between twenty-five to thirty-five years, experts came up with some shocking conclusions. According to the survey, forty-seven percent of the college students admitted that their parents and guardians were helping them to pay most of the expenses since they started living far from home. Most of the bills paid by the parents were groceries, cell phone bills, clothing, entertainment, utilities and rent. Some parents were even catering for the mortgage payments for their children.
The conclusions from the study shocked many parents as they were not expected. The Federal Reserve had previously reported that almost half of the American citizens had less than four hundred dollars in savings. However, the Millennials in the country had over nine thousand dollars, a figure that is above the national average.
The report also indicated that the Millennials had investment accounts and some good retirement savings. This means that they are perfectly prepared for their future. The realization was a good thing for the college students, because they have proven that they are thinking better that the previous generation in financial preparation matters.
It is, however, paramount to understand how this is affecting the guardians and parents who are doing their best to support their adult children. Some parents might even be sacrificing their financial wellness just to make sure that their children prosper in whatever they do. The parents might not have money to make enough savings or good retirement accounts to use when they retire.
If you are a parent and support your adult children, it is imperative to consider your savings and retirement plans. There some parents who had time to prepare themselves early, and when they are supporting their children, they are nor risking their retirement. However, since the government shows that half of the American adults have less than four hundred dollars for their savings, it is clear that the parents are harming their finances when they choose to pay an adult child expenses.
Sam Tabar is a financial expert and attorney who is based in New York City. He has a lot of knowledge in the finance industry, and this gives him job opportunities in large enterprises in different parts of the world. Sam Tabar experience places him at a good place in advicing parents on the best way to manage their expenditure on their children without affecting their future.
According to Full Cycle Fund, to these young adults, they can use Sam Tabar to learn on the best way to manage the savings they receive from their parents. From this, parents can know when to stop supporting their children and be guaranteed that they have secured their future.