Adult children living with parents costing $78,000?
From Money Magazine:
“If you were to invest the $2,200 a year that the average parent gives to a child and earn 8% annually over 20 years, you’d add $78,000 to your portfolio - money you might desperately need one day. Meanwhile, your openhandedness could be hurting, not helping, your kids by keeping them everlastingly immature and ill-equipped to deal with financial challenges or setbacks on their own.”
Maybe it’s time to cut the purse strings and set some guidelines for the amount of financial support you’re willing to give.
Adult children taking record amount of money from parents
The financial support parents are giving to adult children has reached record levels, at least in the UK.
Last year, 39% of parents had given or loaned their adult children or granchildren significant sums of money. This year, the same survey — performed by UK insurance firm Scottish Widows — found that number had soared to 55%. The average amount parents said they gave their adult children or grandchildren was over 12,000 British pounds (over $24,000!).
How much of your retirement savings are you willing to hand off to your adult children living at home?
Where the kids are…
In one area of Sydney, Australia, 71% of 17-28-year-old adult children still live at home, prompting one television producer to create a documentary about the phenomenon.
Ann Landers dishes advice on dealing with adult children
Today’s “Classic Ann Landers” features two questions on dealing with adult children, including one 21-year-old stepson who lives at home and sometimes has his girlfriend sleep over.