Helping Adult Children Manage Finances

Thanks to today’s shaky economy, there are a good many adults who simply cannot be financially independent. Maybe they’re unemployed or underemployed. Maybe a big mistake in the past has left them hopelessly in debt. Whatever the reason, you want to help them. They are your children, after all, and you would feel like less of a parent if you let them suffer.

However, giving money to your adult child can be a touchy subject, on both ends. For your child, this is likely a very shameful favor for them to ask of you. After all, they’re supposed to be adults, and to still have to ask their parents for money might make them feel, frankly, child-like. With that in mind, it’s best to not lecture or shame them about this, even if you feel like you want to.

And yes, you might very well want to, because giving money to your adult child can be stressful and frustrating to the parent as well. You probably thought that providing for your child would end once they grew up, but this has not been the case. And the more you give them, the less you have for your retirement.

With all that on your mind, the thought of cutting your child off because you’ve “given enough” or that they aren’t spending your money wisely enough becomes a realistic one indeed. But unless you want to create a rift in your family, as well as risk cutting somediv who absolutely, positively needs every last cent you can spare, simply saying “no” isn’t a good idea.

But neither is blindly giving money over and over again, because then your child learns nothing. So along with providing money when necessary, it’s a good idea to provide some tips on managing finances. If every penny counts, then your adult child needs to learn how to best manage each and every one of them.

Here are a few quick and easy ways to help your adult child learn to manage their finances:

Work on a Budget with Them

Sit down and go over every bill and debt of theirs, compare it with the money they make, and help them figure out exactly how much money they need to stay afloat.

By implementing Mint.com’s budget feature, you can make teaching your adult child how to budget easy and fun. Click here to get started!

Suggest Ways to Cut Down Expenses

If you know of a cheaper phone plan, let your child know about it. If they have an expensive cable package, talk to them about how to reduce it, or possible eliminate it completely.

Stress the Value of Fun Activities That Don’t Cost Money

If you’re strapped for cash, going out to the movies or buying video games won’t help. Remind your child that simple activities, such as going to the park or mini golf, can be just as fun and would cost them so much less money.

Teach Them How to Do More Stuff at Home

Eating out is expensive, as is always calling a repairman or plumber for every little problem. By teaching your adult child how to cook and use tools, they could start taking care of those things on their own.

Yes, it’s nice to get out and enjoy a restaurant every now and then, and some repair jobs are simply too much for anydiv but a professional, but even basic knowledge can slash your expenses significantly.

Source: mint.intuit.com