Fiction: Providing financial support to young adult children now will help them achieve financial independence later.
Fact: When supporting family members, the expectation is that these young adults will progress in their careers and eventually have enough earning power to achieve financial independence. But are you fostering habits that will lead to financial success and independence? Or are you setting the expectation that you’ll continue to fund a lifestyle that your children may not be able to afford on their own? Learning to live within our means can be a challenge at any income bracket, and the line between cutting your kids off financially and enabling bad habits is a tough one to tread. To help, here are some compromises you might consider: charge rent, pick an expense (e.g., groceries, utilities) and be consistent, establish boundaries, and set a positive example by living within your own means.