Your Adult Children Could Sabotage Your Retirement Plans

Around 72% of parents surveyed said they still give their grown children some form of financial support, according to The Financial Journey of Modern Parenting. This can only mean that those parents are putting their adult children’s interests ahead of their retirement plans.

Don’t get me wrong, I think it’s very important and well-intentioned to help your children, but financially funding a loved one can seriously affect your retirement savings. When it comes to some more dedicated parents, supporting adult children can actually lead to a less comfortable standard of living.

The same study mentioned earlier shows that nearly half (43%) of parents are willing to live a less comfortable lifestyle to meet the financial needs of their adult children. And 26% would even get into debt just to provide money for their children’s rent, bills or other debts.

If this is your case, talk to your children and help them build both a financial plan and good money habits. Also, make your budget and see what’s the exact amount you can afford to help them, so you won’t derail retirement plans.

Rose