This week's New York Times Magazine reports on the growing phenomenon of 20-somethings delaying aspects of adulthood, from full-time jobs to marriage to home-buying. The article cites a survey reporting that in 2008, two out of three parents said they'd given their adult children practical assistance in the prior month, compared with just one out of three in 1988. With the economy still crippled, it's no surprise that this cohort is having difficulty "launching."
Consumer Reports Money Adviser recently asked financial planners and family therapists for advice on helping adult children financially without fostering dependency. Among their thoughts:
• Set reasonable boundaries. If you plan to give help, make it clear when that help ends, or what your child must do to continue to obtain assistance. If you're setting up a loan, outline in detail how and when it must be paid back.
• Charge rent. Requiring that an adult child living at home pay something every month—even a small amount—models behavior your child will need to master when he or she finally leaves the nest.
• Don't put strings on gifts. Either loan or give, but don't give money if what you really want is to be paid back.
For more on this subject, check out "Should you bail out your kids?" from Consumer Reports Money Adviser.
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