It’s become normal for children after college to move back in with their parents. It’s comforting for both the adult child AND parent. But is it really in the best interest of your adult child?
We all want our children to be happy in life. “Happy” is subjective and can include being grateful, self-sufficient, innovative. For your adult child to be all of these things, how do you prepare them to leave the nest and begin on their adult journey of life?
One way to begin is to help them start thinking about how they envision their adult lifestyle. Ask questions such as the following:
Do they want to travel around the world?
Do they want to start their own company?
Do they want to own a home?
Do they want a large family?
These questions will help them think beyond purchasing the latest fashion trend or computer game. When they begin seeing themselves as an adult then they’ll be ready to begin managing their finances.
Some things for you to consider:
1- Hire a CFP® to help them create a budget. While you can help them yourself, it may be better received coming from a third party.
2- Stop paying for their living expenses. Start charging rent and their share of utilities and food. In this way, they begin learning to live with less discretionary money.
3- Stop bailing them out if they can’t pay their bills. It’s difficult to become independent when you can’t manage your money. If you’re always bailing them out of their overspending how will they ever learn?
While these steps may be difficult to implement, it’ll help them grow into a financially responsible adult. Recognize any type of change in a relationship is difficult. You still will be the parent but your role will be different as your child continues their journey in adulthood.
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ABOUT THE AUTHOR:
Niv Persaud, CFP®, CDFA™, CRPC®, is the Founder of Transition Planning & Guidance, LLC. Life is more than money. It’s about living the lifestyle you want and can afford. For that reason, Niv consults with clients on money, life, and work. Her approach capitalizes on techniques she learned throughout her career, including as a management consultant, executive recruiter, and financial advisor. Her services include spending plan, financial plan, divorce financial review, life strategy, and professional progression. Niv actively gives back to her community through her volunteer efforts. She believes in living life to the fullest by cherishing friendships, enjoying the beauty of nature and laughing often — even at herself. Her favorite quote is by Erma Bombeck, “When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left and could say ‘I used everything you gave me’.”