How to Deal With Adult Children With Financial Problems
When children grow up and leave the nest, they tend to make mistakes. Unfortunately, one of the most common mistakes young adults make has to do with finances. Restraining yourself from digging them out of the hole they dug themselves into is not easy, but most of the time bailing them out is not what they need. They will not make the same mistake again if they are able to learn and evaluate the errors of their past spending habits. Owing a parent money does not make for an easy relationship, or for good conversation over holiday dinners. Learn the right way to teach financial responsibility to your adult children.
Instructions
Listen to your children when they share their financial burdens. Share stories of your own about the hard times you have had to muddle through. Lend money only if it is necessary due to a true unexpected emergency. Help your child by paying their electric bill or buying them groceries if they show they are trying hard to manage their finances to the best of their ability, according to financial expert Larry Burkett in his article "When Grown Children Need Financial Help" (Reference 1). Buying needed clothing for work or providing formula or diapers for the grandchildren are much better than just handing them cash. Make it a condition of the loan that they will enroll in a course that instructs them in budgeting and saving their money properly so that they will never be caught unprepared again in the future. If your children are not yet in financial trouble but you see them heading in that direction, a gift certificate for a course would make an excellent Christmas or birthday gift. Caution your adult children about the evils of credit card abuse. They may argue that they get points or other rewards by using the card, but show them how these rewards actually cost them more in the long run due to the finance charges on the cards.
