Growing up means many things, whether physically, mentally, emotionally, or financially. And most people agree that teaching their kids to be financially independent is an important part of raising a child. But when should “financially independent” actually begin?
Well, like many things, it all depends. Young adults say age 21 is a good age to start paying some of their own expenses. Not surprisingly, older generations are more likely to think their kids should be completely financially independent by then. We’re not here to judge generational differences, make excuses, or place blame; we want to explore the facts.
Sixty-eight percent of parents with children over age 18 say they are making a financial sacrifice to support them, according to a new report by Bankrate.com. From buying groceries to paying for cell phone plans or covering health and auto insurance, parents are spending more than $1,400 a month, on average, helping their adult children make ends meet, a separate report by Savings.com found.
Is this financial support necessary? Is it counterproductive? Again, it’s not an answer that we have. The fact is that it is happening more often than ever before. And we are here to help integrate these decisions to improve your overall financial wellness.
Multnomah Group is a registered investment adviser, registered with the Securities and Exchange Commission. Any information contained herein or on Multnomah Group’s website is provided for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Multnomah Group does not provide legal or tax advice. Any views expressed herein are those of the author(s) and not necessarily those of Multnomah Group or Multnomah Group’s clients.