A Parent’s Guide to Supporting Young Adults

Economic factors are forcing many young adults to turn to their parents for continued financial support. Just last year, 58% of 18- to 24-yearolds in the U.S. lived with their parents.

As this trend continues, more parents are providing financial support that they didn’t plan for. In addition to the impact this can have on their own finances, many are unsure how to navigate support in a way that encourages independence.

How can parents help set their children up for success as adults while balancing their financial planning needs?

Discuss the “what-ifs.” What if your child loses their job? What if they need help once you’re retired? Even if you’re not supporting your child financially, consider these hypothetical scenarios and how you’d anticipate providing support.

Share your perspectives. Ask how your child is approaching financial planning. Not only do these discussions help you understand how they’re doing financially, but they also provide an opportunity to share your insights and answer questions they might not know to ask.

Outline your expectations. Setting expectations and boundaries can keep everyone on the same page and help nurture success rather than dependency. If your child moved back in, would you expect them to contribute to household expenses — and if so, how much? What kind of progress would you expect them to make in their savings or career while receiving your support?

Find a balance. Your own financial goals shouldn’t be sacrificed in the process of (potentially) providing for your child. Find a balance through discussion and planning: For example, if your child is living paycheck to paycheck, partially assisting them now could provide the lift they need to build their savings and prevent financial setbacks for both of you later on.

Financial planning can be tough in these uncertain times. Get in touch if you or your children would like expert guidance and insight along the way.

Are you Sure you
want to leave?

Click Yes to be redirected. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website. When you access this site, you are leaving our website and assume total responsibility and risk for your use of the website being redirected to. These materials have been independently produced. ROI financial is independent of, and has no affiliation with the website being redirected to.