The Great Recession gave many young adults a rocky start at entering the workforce and becoming self-supporting. But even now with the economy improving, millennials are still looking to mom and dad for financial support. Some alarming numbers show the negative impact that could have on parents' retirement savings.
Even if the economy is booming and unemployment is really low right now, this isn’t translating into young adults leaving the nest at least financially. In a recent survey by CreditCards.com, a whopping 75% of parents say they’re still helping their adult children financially including day-to-day living expenses, groceries and even cell phone bills.
Another study showed that 80% of parents have helped to pay living expenses for their children over 18 years old. It estimated the impact that would have on the average retirement portfolio at just over $225,000 because that money is not being invested for the future when parents may need it.
Rob and Steve cover these topics on supporting adult children:
- What can parents do to help kids but still protect their retirement savings?
- If your adult child isn’t working you want to make sure he or she is doing everything possible to find a job. What if they ARE working?
- What does the Bible teach us about helping our adult children?
Next, Rob and Steve answer some listener questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:
- Can you expound on long term care insurance?
- If you have a relative you take care of who cannot be by herself anymore, is there a way to financially handle this?
- If your daughter wants to consolidate some debt, should she consider using a debt relief company?
- If you're getting sticker-shock on an upcoming wedding, what is the average you should consider paying for a wedding?
- Are the proceeds from a life insurance policy considered income?
- If you're newly-weds expecting twins and have some debt, should you consolidate debt to make it more manageable?
- If you plan on retiring next year and have some cash value in a life insurance policy, should you consider cashing it out to pay off your mortgage?
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