All parents wish the best for their children. This does not change when the kids grow into adults. More often than less, parents have the urge to financially support their adult children. This may include paying their rent, or helping them settle any other expenses.
Many parents end up asking themselves when they need to stop supporting their children financially. A recent survey unearthed startling revelations, which forced legal and financial expert Sam Tabar to weigh in on the issue.
47 percent of individuals aged between 25 and 35 years disclosed that at some point, their parents helped them settle part of their bills even after they had moved out. 21 percent of the expenses were telephone bills. Groceries accounted for 20 percent of parental support, while clothing amounted to 16 percent of the total support received.
The Federal Reserve estimates that more than half of American citizens have under 400 dollars in savings. On the other hand, those who took part in the survey have an average of 9,100 dollars in savings, which is way higher than the national average.
According to Art Station, Sam Tabar points out that there is need to consider the impact of these figures on parents who are still offering financial support to their adult children. It is equally important to ask whether it is acceptable for parents to sacrifice their own financial security so that they can help their grown children to prosper.
Basing on this, he advises parents to evaluate their financial position before unnecessarily supporting their adult children. It is important to be well prepared for retirement before making such a decision.
Sam Tabar in Brief
The New York based financial and legal expert is a senior executive at FullCycle Fund. After graduating from law school, he joined Skadden, Arps, Slater, Meagher and Flom LLP, where he made a name for himself by being a proficient commercial attorney.
Mr. Tabar has also worked at Sparx Group where he was the head of business development and managing director. In addition, he has worked at Bank of America Merrill Lynch where he was in charge of operations in Pacific Asia.
Learn more about Sam Tabar: https://commons.wikimedia.org/wiki/File:Sam_Tabar_Picture.jpg