Budgeting Mistake: Financially Supporting Your Adult Children
This is actually one of the biggest budgeting mistakes many people make. A study done in 2022 showed that half the parents with an adult child in our country help them with some sort of financial support.
26 percent of them said that they’ve had to give even more since the beginning of the pandemic. Moreover, 62 percent of adult children that still live with their parents don’t contribute to any of the household expenses.
On average, individuals who financially support their adult children give them about $1,000 monthly for expenses like food, rent, health insurance, cell phones, and tuition.
That same study concluded that parents who still work and support their adult children pay about 23 percent more on their kid’s expenses than they do contribute to their retirement savings.
The truth is that many people sometimes jeopardize their retirement by giving their children money, which tends to drain them.
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