The United States economy is recovering from a major downturn, and many parents are finding themselves supporting their adult children. Children as old as thirty years old have been forced to live with their parents while the economy recovered. Many parents are trying to plan for retirement, but they are also stuck helping their adult children reach their full potential. This unique problem plagues parents throughout the United States, and recently Sam Tabar, a top financial mind analyzed the situation for the Huffington Post.
Sam Tabar was quick to point out that 47% of millennials(people aged 25 to 35) receive some financial support from their parents. This includes everything from rent to the cell phone bill. This number sounds astounding until you realize how common it is for families to share cell plans for more than a decade.
One might wonder what this cycle of dependence means for American families. Sam pointed out that the average American only has $400 in savings, while millennials fair a lot better, with an average of $9,100. Many millennials are ready for retirement or a major emergency. It is great that millennials are ready for the future, but how is this impacting their parents. Many parents are sacrificing their own retirements to provide for their own children.
Sam Tabar feels that parents that are currently providing for their children should seriously look at their own retirement savings. Parents need to take an honest look at their own retirement. If you can afford to provide for your children, then you can continue to do so, but parents that cannot afford to pay their child’s expenses should change their actions. Parents are probably harming their own finances by paying for their kid’s expenses because most Americans have very little savings.
Sam Tabar advises that parents that decide to cut their kids off should have an honest discussion with their kids. Your child might have the savings they need to get by on their own, and if they do, then they should be doing so. Sam strongly believes that parents should not sacrifice their own financial health for the sake of their children.
Sam is happy to give advice to parents throughout the United States, and he is extremely qualified to do so. Sam has spent his career giving legal and financial advice to companies around the globe. He started out by working as a financial lawyer, working with firms around the world. Eventually, Sam would take a position with Merrill Lynch, and today he works at FullCycle Fund. Parents around the globe should heed Sam’s advice. He wants everyone that can retire comfortably to do so easily. He hopes parents will do what is right for themselves and their kids.