Have an honest conversation about what parents will contribute financially and what adult children must cover. Define which expenses family funds pay for (textbooks, meal plans) and which are the child's responsibility (entertainment, dining out). Set time-bound goals for financial support and for how long rent-free living or other assistance will continue. Encourage tracking of all income and expenses, including full- and part-time work, work-study, summer jobs, and family contributions, using any convenient app or spreadsheet. Establish a banking relationship and explain compound interest, fees, minimum balances, overdraft protection, and electronic bill payment. Explain differences between debit and credit cards and the CARD Act's requirement that applicants under 21 show independent income to qualify for a credit card.
As families prepare to send their kids off to college or to start their first jobs, it's time to foster the next phase of their financial growth. Start by having an honest conversation about what you're willing to contribute financially. Many parents help their young adult children, often at the expense of their own retirement plans, so it's critical that you have a clear idea of what you can afford.
Communicate which expenses are covered by family funds (textbooks, meal plans) and which are the kids' responsibility (entertainment, dining out). If your child is working and not attending college, discuss when your support, which includes having them live with you rent-free, will conclude. If you do not create time-bound goals, you may find yourself paying for adult children's expenses for decades. With these boundaries established, encourage them to track income and expenses.
Collection
[
|
...
]