Naturally, a parent often wants their child to have the best regardless of their age. Even when a child becomes an adult, a parent may still pay for specific expenses because they feel the need to do so. In the end, parents may not know the correct time to stop paying their child’s bills.
A survey of millennials aged between 25 and 35 by Fidelity established startling conclusions. 47% of the millennials noted that their parents had assisted them in paying part of their expenses since they started living independently. Cell phone bills top the expenses that many parents paid for at 21%. It is followed closely with groceries at 20% and clothing at 16%. The Utilities take up 14% of the expenses that parents pay and rent 12%.
What are the implications? The Federal Reserve posits that half of the United States’ population has a savings of less than $400. In contrast, the average savings of the millennials surveyed is $9,100. It is much far above the country’s average. Over a half of the millennials have retirement savings and investment accounts. Therefore, they are financially readying themselves for the future, which is a commendable thing.
Conversely, there is a need to look at how parents that support their children are affected. A times one may wonder whether the parents are sacrificing their financial safety for the prosperity of their children. Learn more about Sam Tabar: https://twitter.com/samirtabar?lang=en
Additionally, it raises the doubts on whether the parents have enough funds in the retirement accounts to enable them retire comfortably.
Parents that are offering help to adult children should significantly consider their financial situation when they retire. Some of them may have prepared well by not risking their financial stability to assist their child. However, with a half of the adult population having a savings of less than $400, chances are parents are harming their own finances. That is by continuing to cater for the child’s expenses.
Therefore, parents that opt to use the funds for the financial well being should have a candid discussion with their child. A child that has $9,100 in savings can cater for their own bills. They should take up financial responsibility for their expenses. For this reason, Parents should not jeopardize their financial well being when the children can support themselves.
About Sam Tabar
Art Station revealed that Sam Tabar is an entrepreneur, financial strategist, and attorney based in New York. Presently, he is the chief operating officer of Full Cycle Energy Fund. Tabar holds masters of law. He obtained his masters from Columbia Law School. In addition, he has Bachelor of Arts, which he received from Oxford University.
He is a member of the New York State Bar. Bloomberg has it that Sam Tabar has previously served as an attorney. He worked for Skadden, Arps, Meagher, Slate, & Flom. Sam also worked as an attorney for Schulte, Roth & Zabel. Previously, Sam Tabar worked for Bank of America Merrill Lynch as well as Sparx Group as the head of capital strategy and marketing.