"The parents aren't broke in the traditional sense. They have discretionary income and are choosing to spend it on experiences while treating adult children as a backstop for necessities."
"The core concept here is spending sequencing: the order in which you fund your obligations matters as much as the total amount you spend."
Many parents prioritize discretionary spending on vacations over essential needs, expecting adult children to subsidize their lifestyle. This pattern reflects a broader trend in America, where personal savings rates are low and consumption expenditures are high. The issue lies in spending sequencing, where families fund luxuries before necessities, preventing them from facing financial consequences. As food costs rise, the reliance on family for basic needs while indulging in experiences highlights a significant financial mismanagement issue.
Read at 24/7 Wall St.
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