The economic crisis caused by COVID-19 has financially devastated many young people. Parents might want to help out, but how can you support your adult child without going broke yourself?
Millions of young people are out of work and out of options. You want to help your kids, but you need to be careful not to put a financial strain on yourself.
First, never risk your retirement. It’s better to let your kids come back and live at home than to draw from your retirement funds.
If you do have extra money, be specific about your plan. Is it a gift or a loan? If it’s a loan, set a timeline for how long it will take to pay you back. Make sure they’re paying you something each month. Also, make sure you agree on what they will use the money for.
If necessary, help them devise a budget. Apps like Mint, PocketGuard, and You Need A Budget can help your child track their income and expenses.
Also, think of how you can help your kids without shelling out money. Maybe it’s babysitting or assisting them with job searching.
According to one survey, almost three out of four U.S. adults with children over age 18 have helped their adult kids pay for living expenses or debts.