Studies indicate that parents will financially help their adult children for tens of thousands of dollars over a multi-year period. During these recessionary times, it’s good to be able to help your family. But, remember, if you help out too much, you could leave yourself in a financially vulnerable position.
Never borrow to help a family member, unless you can afford to repay the loan yourself. If they need to borrow from you, it’s possible that they won’t be able to pay you back.
Instead, help in non-financial ways. Offer to help watch their children to save on daycare costs. Offer to do home repairs or cook meals to help them save money. Even better, teach them how to prepare a household budget so they can better manage their own finances.
As you visit with family this Thanksgiving, remember that “if you give a man to fish, you feed him for one day, but if you teach him to fish, you feed him for a lifetime.” Giving money to adult children is not a long term solution, so discuss ways to help your adult children become financially independent.