Parental Finance 101
More than 40 percent of parents still provide financial support to their 23- to 28-year-olds. How do you know when to offer and help and when to cut off the cash flow. Financial expert Beth Kobliner offered some advice in “Help Your Grown Child Without Going Broke.”
When to help (if you can afford it) : Paying for health insurance, helping with rent
When to think twice : Assisting with student loans, offering a loan
When to just say ‘no’ : Bailing out bad shopping, co-signing on a credit card
Buy Your Kid a Job???
For the adult child who has everything: how about your own business? That what Wall Street Journal columnist Sue Shellenbarger found some parents are doing when confronted with the weak job market for new grads.
In “Kids Can’t Find a Job, Buy Them a Business,” Ms. Shellenbarger interviewed 10 parents who purchased franchise companies—from business services to restaurants—for their children. What she found:
The setups can be stressful for parents and children alike. Parents try to strike the right balance between meddling too much and protecting their investment. And adult kids would prefer to be financially independent; some had to move back in with their parents to get their businesses off the ground.
But the parents I interviewed said that so far, the potential rewards justified worth the risk. “As a parent, the best gift you can ever receive is to see your children happy and successful,” one father said.