Many parents do not know the right time to stop supporting their adult children. Parents want the best for their children. It is natural for them to support their children. Sometimes they go to the extent of paying rent and catering for other expenses incurred by their kids.
A survey done by Fidelity on the youths between 25 and 35 years made startling revelations. From the study, 47% of the millennial were still receiving support from the parents. Their parents were paying for their expenses. They include cell phone bills, clothing, utilities and entertainment, groceries, as well as rent and mortgage. The bills took up 21%, 16%, 14%, 20%, and 12% of the parents support respectively.
When it comes to savings, the Federal Reserve revealed that only half of Americans make over $400 in savings. The millennial surveyed had $ 9,100 on average in savings. This amount is more than the national average. Moreover, over half of those surveyed had retirement savings and investments accounts. This means that they were fiscally preparing themselves for the future. However, parents are dilemma over such concerns. This is because they sacrifice their future fiscal wellness by supporting their adult children. It is time for the parents to have broad and honest discussions with themselves and their children and consider their position in retirement.
Considering the Federal Reserve’s observation, it seems that many parents are endangering their financial wellness by continuing to offer support to their adult children. Preparing well for retirement requires parents to avoid risking their future financial stability. With an average of $ 9,100 in savings, the children can pay for their bills. By discussing about their financial situation, parents can help them understand the importance of taking full responsibility of their finances.
About Sam Tabar
Sam Tabar is the chief operating officer of Full Cycle Energy Fund. He is a highly respected legal expert. Sam is also an experienced capital strategist. Previously, he worked as the head of Capital Introduction at Merrill Lynch in Asia Pacific. Additionally, he has managed leading hedge funds In Asia like PMA Investment Advisors, which is based in Hong Kong.
Sam Tabar received his legal training from the esteemed Columbia Law School. He went on to serve in legal firms like Schulte, Roth & Zabel as well as Skadden, Arps, Meagher, Slate & Flom. His success in the hedge fund industry is unparalleled. Sam is one of the major investors in THINX.