More parents are supporting their adult children amid economic hardship, study finds
BALTIMORE - Many argue it's harder these days for young adults to make it on their own. A recent survey found nearly half of parents with a child over 18 are financially supporting them.
In fact, according to data from Savings.com, of 1,000 parents, 47% reported providing ongoing financial assistance to their adult children. Many cited economic hardships faced by their children such as student loan debt or stagnant wages.
On average, parents are shelling out around $1400 a month to help support their kids, covering everything from grocery and cell phone bills to rent to keeping them on health insurance plans until they're 26.
However, this support doesn't come without its challenges -- nearly 58% of parents say they're sacrificing their own financial security.
JP Krahel, an accounting professor at Loyola University Maryland, says parents should equip their children, not enable them.
"The way to settle that difference, to say, 'well, you're kind of getting older, but we still want to support you,'" Krahel said. "...is to have those awkward conversations. 'Where do you actually stand? And where do you think you could go?'"
Experts say parents can take these steps to help their young adults achieve financial independence:
Set up boundaries and a transition strategy for gradually withdrawing financial support.
Be their accountability partner and introduce ways for your adult children to budget their spending.
The bottom line -- do what's best for your own family and circumstances.
