Money Talks News: How to Cut Your Kids Off
Wed, 30 Oct 2013 12:16:48 GMT —
"My daughters range from 29 up to 47. They go through good times. They go through kind of harder times, and they go through times when they need something that can't really afford. So guess who pays for it? (laughs)"
Parents provide for their children. But for how long?
The National Endowment for Financial Education says 59 percent of parents provide money to their adult kids after they've finished school.
It's natural to want to help your kids get started in life.
But when that financial help is hurting you financially, it's time to cut that cord. Here are some tips to get started:
First, have a conversation. Express your support, set goals and discuss how to reach them.
Next, make a plan to end the help, including specific dates. Then, offer help that doesn't involve cash... babysit if they need time to work or job hunt, or use your business connections to help them land a better gig.
If you're helping with credit cards or student loans, keeping things current is one thing: co-signing a loan is another. If they default on a co-signed loan, you are going to be on the hook.
Help them create a budget: one that focuses on destroying debt and saving for the future.
And finally, lead by example. Pay your bills on time, work on your credit score and save where you can.
Bottom line... shutting down the bank of mom and dad may not be easy. But at the end of the day, it's going to help your kids succeed.
Want more information? Just go to moneytalksnews.com and do a search for "Cutting off your kids."
For Money Talks News, I'm Stacy Johnson.