Financial ‘Adulting’ Tips for Your Kids

Congratulations! Your children have graduated college, found jobs and have (finally!) moved out. You truly are empty nesters.

Of course, you’ll probably be riding a roller coaster of conflicting emotions during this time. You’re glad to have your space — and your refrigerator — back, but it’s hard to stop worrying about your children’s ability to make it on their own.

One symptom of this separation anxiety is that many parents continue to pay for certain expenses that their children really should be handling themselves. But the longer Mom and Dad continue to provide this support, the harder it will be for the kids to learn to be financially independent. That’s why it’s important to gradually sever these monetary apron strings.

Some may call this “tough love.” I like to think of it as “adulting.” Here are a few places where you can start.If your child’s vehicle is still registered in your name, it’s time to transfer the title and the responsibilities of ownership. Of course, if they’ve never paid for auto insurance, registration fees and excise taxes they may be in for a rude awakening. But, if they don’t drive a lot and have (knock on wood) avoided getting dinged with points for speeding tickets or accidents, they may be eligible for affordable coverage — particularly if they’re living in an area with lower rates of accidents and thefts.

Once the kids are out of the house there’s no reason to pay family rates for cellphone plans, health club memberships, premium cable channels and audio and video streaming subscriptions you don’t use yourself. Let them figure out which services they need — and can afford — on their own. They may be surprised to discover that they don’t need the latest iPhone to lead a fulfilling life.

Once the kids are out of the house there’s no reason to pay family rates for cellphone plans, health club memberships, premium cable channels and audio and video streaming subscriptions you don’t use yourself. Let them figure out which services they need — and can afford — on their own. They may be surprised to discover that they don’t need the latest iPhone to lead a fulfilling life.

If you have been paying for some or all of your kids’ rent, it may be time to start weaning them from this subsidy, even if this means they have to move into a smaller apartment in a less desirable part of town. If visiting their new space gives you the willies, keep reminding yourself that this was probably how you lived when you were their age and just starting out.

https://www.kiplinger.com/slideshow/retirement/T065-S014-hey-parents-financial-adulting-tips-for-your-kids/index.html