A recent Bankrate survey showed that 68% of parents are helping to support an adult child. Those parents often sacrifice their long-term financial stability to help their kids.
Here are four tips from Bank of America to help your kids reach financial independence.
- Show your kids how to develop and stick to a budget.
- Explain that they shouldn't take on new debt but focus on paying down existing debt. Discuss which expenses they can trim or eliminate to put the money toward their debt.
- Discuss career goals and income plans and encourage them to take a part-time job or internship to help them build their skills and resume.
- If they're living at home, outline your expectations. Will they contribute to household expenses, do certain chores, or accept special projects to help?