Money and your adult children
Whether they have left home to work, to study, or to travel before settling down, your adult children can still affect your finances. They may want your assistance with university fees or a deposit on a house. They may want to live with you, to help them save money.
Think about whether lending money or supporting them in some way is good for you, for them, and for your relationship. Take a breath. Draw up a budget, before you make any decisions, and make sure you can afford the help you want to give. Draw up a repayment schedule, set boundaries, and be clear about your expectations. The article Should parents bail out their adult kids? can help with more ideas.
Your kids may not realise that your financial situation has changed – that you can’t pay for everything, the way you did when they were younger. Have an adult conversation with your adult child – talk to them about your money and what expenses you face. They might even appreciate your honesty.
Credit cards
A credit card can be a tricky tool to get the hang of. It can be easy to feel like you’re not spending your own money, and many young people can get into trouble quickly. Help your child to learn how to use their credit card responsibly – using it only to buy things that they can afford and paying it off in full every month.
The Sorted website and Consumer website have more advice on managing credit cards. Clutha Budget Advisory Services also has advice on managing credit cards. This article on building good credit helps you to support your child to earn a good credit history.
Older parents and money
It can be nerve-wracking, but have the big conversation about money. It’s important to share your financial information and estate plans with your adult children. It may be a difficult conversation to begin, so plan a time and place that’s good for everyone. You can ask your financial advisor to help with the discussion, if you have one. Talk about their future responsibilities regarding your estate, funds for grandchildren, and charitable plans.
It may seem that roles have been reversed, as adult children begin to take care of their parents in the same way their parents cared for them when they were young. Talk these changes through, and ask for help if you need it.
The Sorted website has ideas for planning and dealing with your financial situation in retirement. And Age Concern has information on financial issues that affect older people.
