Is it a mistake to help your grown kids with their expenses?
A money mistake many of us make comes from a sense of obligation or a desire to help our kids or grandkids. Perhaps you’ve heard the term Boomerang Kids. These days it’s become common for young college graduates saddled with student loan debt to end up back home living with mom and dad.
I see couples who are retired, living on a fixed income, and yet they are still buying homes for their children. It starts innocently enough. One check to help out during an emergency becomes a monthly check to cover the cell phone bill, and then it’s the car insurance and health insurance and then they are living off your retirement savings.
This has become a very big issue because the emotional side of it makes it a hard subject to address. Of course, you want to help your son or daughter; of course, you want to do the right thing. But sometimes, especially in cases of divorce, there is no stop-point, no guidelines, and no boundaries.
Having a written plan in place can help you get those boundaries, so you know what the stop-point will be without the emotional strings attached.