Giving Financial Help to Family Members—Look Before You Leap!
A growing number of adult children are turning to the Bank of Mom and Dad and Grandparents. Many families have the impulse to be generous as they watch their adult children struggle with a tough job market and challenging economy, so they lend their children money to help pay for basics like rent, debts owed and transportation or let adult children move back home.
Parents want their children to be successful and ultimately not struggle. This poses a huge dilemma for a parent or grandparent. You want to help your children succeed, but in doing so you can jeopardize your own retirement and their autonomy. It’s important to ask yourself two basic questions.
How much if any can you really afford to give your adult child?
What steps is your adult child taking so they won’t always need financial help?
Sometimes it is important to let our loved ones find their way into hard choices that will let them grow confident in themselves. If your adult children could benefit from creating a budget and a plan, send them to a nonprofit financial counselor. LSS Financial Counseling offers free budget and debt counseling, with offices in MN and Wisconsin. Call 888-577-2227 or visit our website.