If you’re a baby boomer financially supporting your adult children one way or another — such as by pitching in for car insurance payments or rent — you’re not alone.
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A new study by USA Today found that “65% of parents give their adult children (ages 22-40) some kind of financial support.”
Many Americans suffered from inflation in 2023, and the new year might bring more challenges. According to reporting by the Associated Press, the World Bank anticipates that the “global economy will slow for a third consecutive year in 2024.” It’s natural that in uncertain economic times, parents want to chip in to help their kids stay afloat — but they risk doing so to their own detriment.
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Another notable finding from the USA Today study was that one-in-three parents who give money to their adult children indicate that it “puts them under financial strain.” Just how much financial strain? The study explained that parents assisting their children (above age 22) spend $718 on average each month doing so. That’s $718 that could go toward retirement, investments, paying off debt and so forth.
Money expert Suze Orman doesn’t think that parents should keep handing money to their children. In May 2023, she told Moneywise that parents should tell their kids they are no longer their bank accounts. In a blog post on her website the same month, she explained that cutting the financial cord is a “loving lesson” that can help adult children keep financial difficulties at bay when they launch into their own households.
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This article originally appeared on GOBankingRates.com: Suze Orman Tells Parents To Cut Off Adult Children As New Study Shows 65% of Boomers Are Providing Financial Support
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