#AdultChildren #BankrollingAdultChildren #AdultChildrenLivingAtHome
Four out of five parents provide some type of financial support for their adult offspring.
They spend twice as much on them as they do saving for retirement.
Half of parents are willing to draw down savings, and a quarter would go into debt or pull from retirement savings to support kids who’ve left the nest.
These are facts according to a new survey from Merrill Lynch and Age Wave, a research firm, which provided the results to USA TODAY exclusively.
Janna Herron tackled this topic in a USA TODAY article that was also published Oct. 3, 2018, in The Atlanta Journal-Constitution.
And it’s not just giving them daily financial report. Parents pay rent for their kids. They pay for weddings and vacations. You might expect parents to pay for college, or loan their child money for a down payment on a house, but they also cover groceries, cell phones and other expenses, the article quotes the survey.
It had been predicted a few years ago that the Baby Boom generation would see the greatest transfer of wealth from their parents, largely because their parents’ houses had increased dramatically in value over their lives.
Now, it appears, that same Baby Boom generation is helping their kids, to a greater or lesser degree, live the lives they want.
As these parents struggle to have enough financial security in retirement, will their children be in a position to repay them for all they had done for them?
As we break this down, it helps to have some perspective. Just a few decades ago, job security was more prevalent. One could rent an apartment or buy a home in most locales for much less than it costs now.
Kids are graduating college with much more debt. They are postponing things like marriage because many of them can’t even afford to move out of their parents’ house. The jobs they have could go away tomorrow – and many have.
On the other hand, lifestyles are more expensive today. Years ago, one didn’t have all the gadgets that make life easier today. Not only do the kids today have them, they need them. It’s tough to survive today without a computer or cell phone, but they make life much more expensive than it was years ago.
If you are a young adult, you should seek to gain independence, financial and otherwise, from your parents.
If you went away to college, you probably had a roommate. Think about a roommate, or roommates, to make living on your own more affordable.
Watch your daily expenses. If you have a $5 a day coffee shop habit, get a Thermos and brew your own. If you buy lunch every day, think about brown-bagging it.
And, thinking further outside the box, think about using a few part-time non-work hours a week pursuing one of the many vehicles that can help you make potentially a lot of extra money. To check out one of the best, message me.
Remember, too, that Mom and Dad deserve the best retirement they can have. If they have helped you in your youth, it behooves you to help them later on, and pay them back.
Life as a young adult is different for you from what it was for your parents. That should not give you license to live off them forever. Because life is different for you, YOU have to learn to think differently.
Peter
Tag Archives: electronics
DO YOU CLIP COUPONS AND THROW THEM AWAY?
We are inundated with coupons.
Merchants use them for effective marketing.
But many have an expiration date on them.
Wise shoppers clip coupons for only what they use – or might use.
If you happen to need that can of artichokes before the coupon expires, you put a few cents in your pocket when you buy it, using the coupon.
But here’s the reward: if you didn’t need it before the coupon expires, you put the entire cost of the item back in your pocket, and throw the coupon away.
As you do, do you feel as if you’ve thrown THE VALUE of the coupon away, or have you saved money by not buying the item?
If you have storage space in your home, you could have bought the artichokes at the coupon price and stored them until you needed them. That would have been wise, if you could do it.
Or, you could shop several stores and see what artichokes go for. If you find them below the coupon price at a store that won’t take your coupon, the shopping effort is worth it, providing you won’t see your savings burned up in gasoline to get to that other store.
The point here is that when you buy things you use, there are ways to save lots of money with a little effort. Countless people don’t bother to use coupons. They can’t be bothered clipping them. They throw lots of money away. Over years, those little, unused savings add up. They might even mean the difference between retiring at, say, 60, and having to work until, say, 70.
Saving money is not rocket science, but you have to devote some time. Very few people go into the first car dealer they see to buy a car. Very few people would have a Realtor take them to look at one house, and buy it on the spot. But we seem to think that a penny here, a nickel there, a dime over here makes no difference in our lives.
LITTLE THINGS, BIG PICTURE
This is where little things form a big picture. It’s OK to clip a coupon and throw it away. Obviously, you didn’t need the item when it was on sale. You may know people who will buy something JUST BECAUSE it’s on sale. They’ll take it home, and maybe they will figure out how they can use it.
Know what you use, and buy only what you use!
By the way, electronics are usually big-ticket items. One could go broke keeping up with the trends in gadgets. Have you ever met a person who will cheap out and cover over a roof leak only with shingles, and not replace the wood underneath, but has every electronic gadget imaginable inside their homes?
These are misplaced priorities. Do you have your spending priorities straight? That will go a long way to a great life.
If you are a careful shopper, visit www.bign.com/pbilodeau. Check out the plethora of big savings, and little ones. You’ll also see a way to earn potentially a lot of money.
The next time you see a person down on his luck, and you feel comfortable giving that person advice, ask him whether he knows where every penny of what he earns goes. Chances are, he does not. He spends without thinking, much of the time. Those who spend carefully may not have every trendy thing, but they have what they need – and much of what they might want. Little actions, multiplied over time, can pay big dividends.
Peter