Parenting Grown Children: What Dr. Spock Forgot to Tell Us

Leaving a Legacy: Letting your grown kids know what you are willing their way.

Estate planning is a funny thing: We don't give it much thought--until we do. When we're leading active, vigorous lives, who can be bothered--who wants to be bothered--by thoughts of mortality? As we get older and more isolated, we may start seeing those wills and estates as a 'pay back' device. And we do so at our peril.

I was reminded of this by hearing Hendrik Hartog  talk about his book, "Someday All  of This Will be Yours," on the Diane Rehm show.  Hartog catalogues a century's worth of emotional perils and legal pitfalls that come with leaving an inheritance that is seen as unfair to  one or all of your children. As he explained on air, his aim in presenting a history of cases between 1850 and 1950 was to look at what they show about parent-child relations and how, in a time before pensions and Social Security, people used the promise of inheritance to secure care for themselves in old age--a grown child was often called upon to stay home and care for an aged parent-.

But Hartog made an important point beyond legal and cultural history. Even though the cases he discusses come from a different time and era, some things never change. People he talks to today tell him similar stories of inheritance plans gone bad in terms of family harmony and unity.

All of this is just another way of saying, it doesn't have to be so, that we can clear the air so that our grown children not only know what's in our estate but what our guiding principles are in dividing up those worldly goods between them and others. Great movie scenes though they make, the reading of the will ought to have no unpleasant surprises--in fact, no surprises at all. The more our grown children know what we're thinking and where and how we saw fairness in drawing up our will, the fewer sources of disharmony we'll leave behind.

The will isn't pay back time. We do want to be remembered fondly, don't we?

 

Money Matters: Is a loan a gift when we help grownkids buy a house?

Whenever we talk with friends about grown kids and money, one connection is a constant. Almost all of us have helped or plan to help our children buy a house. We're the generation that was lucky enough to buy our homes before the infamous bubble and whose overall estates have benefited from the pre-2008 relentless climb in home values. The climb has been such that many of our children, successful though they may be at this point in their early careers, can't afford to buy a house. And we want them to have one: Not just as a shelter, but as a solid financial investment. (Yes, we still believe those days will come again.)

When we do extend that helping housing hand, it tends to fall into one of three forms: an arms-length deal in which money for a downpayment is loaned and repayment is expected; a loan that's not-so-arms length and will be repaid when the house is sold; a loan that's really a gift that comes with no strings attached. (There is a fourth form--or so I've heard: Some buy the house outright for their kids. They put up the downpayment and pay the mortgage fees. But that seems a whole 'nother category of house "loan.")

Here's the story in stats, from a 2010 survey by the National Association of Realtors (Profile of Home Buyers and Sellers): 27 percent of first-time buyers who made a down payment received a gift from a friend or relative, typically their parents; 9 percent received a loan from a relative or friend.

For those 27 percent who give housing help as a gift, the survey includes some non-economic factors to consider: either don't attach any strings or declare upfront what those strings are. They can be anything from eventual repayment of the "gift" (which makes it more of a loan) to calling home more often. Not sure how well that latter point works.

The Re-Filled Nest: Improvements for our college grads in search of a job

The economy has wreaked havoc on those of us with recent college grads. One friend, whose son was fortuante enough to get a job in his professional field (accounting), reports that he is the only one among his set of four best friends to do so. And that's not untypical of the job situation for the past year.

Many of those children--emerging adults, frustrated at not being able to convert their college degrees into good-paying jobs--are living home. That's creating a whole nother set of tensions. For those parents looking for a break in that bleak picture--we love our kids but we don't necessarily love having them live at home anymore--there's some hopeful news on the job front. Not necessarily the dip down to 8.5 per cent  unemployment (though that's welcome), but the signs that show where the job growth is.

In a December jobs report, workers with bachelor’s degrees or other post-secondary educations were the ones who hit the sweet spot: about 1.1 million bachelor’s degree recipients found work. Meanwhile, the number of workers with high school diplomas or less who were employed fell by half a million. More surprisingly, the least-skilled workers also added jobs over the last year. The number of high school dropouts who had jobs rose by 126,000.

According to Catherine Rampell, who runs the online Economix site for the New York Times, the numbers support MIT economist David Autor‘s argument that the work force is hollowing out, producing very low-skill service jobs that generally cannot be done by machines or workers abroad (like food services) and higher-skilled jobs that require greater schooling (like medical jobs).

Grandparenting: Are we willing to share the wealth with our Grands?

A few days ago, I wrote about a 2011 MetLife survey on boomer parent's spending habits vis a vis their grown children. (Long story short: Most of us want to help our adult children with college tuition; fewer want to help them buy a house.)

There's also a 2009 MetLife survey on how grandparents feel about spending money on their grandchildren. The 2011 survey already covered the college tuition question for grandchildren--most of us say, 'no way.' But this survey has more specific questions.

How do we feel about financial assistance or monetary gifts for grandchildren? Two out of three of us give our grandchildren money; The average amount in the five years leading up to 2009: $8,700.

Why did we do it? The reasons most cited were general financial support, education, and major life events.

Do we want to give them gifts while we're still here or leave them a lump-sum legacy once we're gone? Nearly 80 percent of us would rather distribute smaller gifts. Nothing beats seeing them enjoy an indulgence or appreciate real-world help.

Has the Great Recession and its aftermath made us more generous toward our Grandkin? One in four of us report we are providing more assistance than in the past, due to the current economy.

Do we give advice along with the money? Not so much. More than two-thirds of grandparents report that they are not providing any financial advice or guidance to their grandchildren. Among those who are talking to their grandchildren about financial issues, the most common advice is “start saving early in life,” and “don’t get into too much debt.”

Isn't that what our grandparents told us?

Money Matters: What are we willing to pay for when our grown children are grown up?

There's a new survey out on how generous--or not--we are with our adult children. Overall, the 2011 MetLife survey found that four out of five us are willing to help out in a variety of ways. But we have our limits. 

Topping the list in priorities is college education. Nine out of 10 of us believe we, as parents, have some responsibility to pay for some of their higher education, with half of us seeing this as a strong or absolute responsibility. The survey even put some numbers on that assistance: More than half of us  would contribute 10,000 a year or more to the tab for our child's higher education.

In terms of percentages, we're more generous than our parents. According to the survey, only 35 percent of baby boomer parents helped with the college bills. As to helping our grandchildren with their college bills, two-thirds of us don't think we have any responsibility in that regard--love those kiddies though we do. Only only 15% of us report that we have contributed toward the costs of a grandchild’s education. 

We don't see helping our grown kids buy a house as nearly as compelling a responsibility as a college education. Half of us suggested that we had no responsibility at all to contribute to the down payment on a house. Among those 23 percent of us who felt we had at least a moderate responsibility to help, half of us said we would contribute under $10,000 for that purpose.

The survey also looked at how much responsibility we felt in helping out a grown child whose fortunes were flagging--who had lost jobs, were going through a divorce or meeting some other financial setback. More than four in 10 of us reported that, in such cases, we feel a strong or absolute responsibility to help out--if the setback was not of their own making.

Woe betide the grown child who spends recklessly and causes his or her own financial debacle. We are not as forgiving--at least our purses are not. Only 11 percent of us feel the need to bail out a child when the debt is due to overspending. We draw the line at those closets full of Jimmy Choo shoes, crazy weekends in Vegas or a drug habit. But even  here, the MetLife survey puts a number on how much we'd be willing to spend to help out--if we were willing at all. And it's not $10,000. It's half of that.

What about leaving them a legacy? Half of us in the Baby Boomer generation feel little or no responsibility to leave something behind for our heirs. For those of us who do, MetLife has some numbers: Those of us who would leave something behind see the appropriate amount as somewhere between $20,000 and $50,000. 

They survey also looked at what obligations our children feel toward us. Take a deep breath and read on: (all percents are for feeling a strong or absolute responsibility):

62% feel called upon to call us at least once a week to see how we're doing

58% would have us live with them if we weren't healthy enough to live on our own

50% would take us in if were financial destitute

46% would provide financial support in our later years if we were having financial reverses.

Not that we'd want that. 42% claim we wouldn't take the help.

Does this make you want to rethink those contributions to their financial health, education and housing?

 

Grandparenting: We also serve who sit and wait--and watch an endless event.

Ah the joys of grandparenting: small children who love us without question, who will come and cuddle up with us to hear us read a story and who, as they get a little older, will program our iPhone and show us how to download Netflix. They're still interested in hearing about what life was like for their parents when they were little tykes or for us when we were toddlers or teens.

Such wonders come with a price. Friends whose grown child and three grandchildren live nearby are often called on to babysit--something they don't mind doing. They've been to soccer games and volleyball tournaments, clarinet recitals and dance performances. But sometimes the daytime, weekend duties are a little harder to take. To wit, an email from these very same friends that arrived this morning:

"We ended up at [my son's] most of yesterday, covering for him as he had a week-end 2-day exam.  We spent an endless afternoon at a so-called Pine Derby car racing competition for scouts, which my grandson participated in.  There ought to be medals for the attendees!"

Holidays with Grown Children: More on that outsider feeling

Christmas dinner at his daughter's house: Dick was surrounded by his wife, grandchildren, son-in-law, stepsons and their families. What could be warmer and nicer for the holidays? For those of us at a certain age, plenty.

Dick says that as everyone moved from the living room to the dining room for dinner, he sat down on the sofa and brooded. Am I still needed? he asked himself. As a business man (retired but doing volunteer work with a small business advisory group), Dick had been there to advise his son, son-in-law, daughter, and stepsons on their career moves--on getting started, on moving up the corporate or other ladders. Now that they were well on their way, they had reached a point where they knew more about where they were than he did. Never good at small talk, he felt left out of the general chit chat going back and forth between and among his grown children. "I didn't see where I fit in. I wouldn't say I felt irrelevant. I would say I felt almost irrelevant."

To put in perspective the feelings that flooded him that Christmas night, Dick says it has been harder to take than some of the physical diminishments he has experienced as he has gotten older--no longer having the same endurance or strength he had as a 60-year-old man who rode his bike for 50 miles or more on a Sunday outing. Illness and age have taken a toll (20 miles is the new comfort level).  But he says he feels that diminishment of strength less keenly than the loss of his role as the wise head of a many-branched family. As far as he is concerned, the grownchildren have outgrown their need for his advice. "I brought them up to be independent," he says. And now they are.

Who knew success would feel so empty?

Holidays with Grown Children: That outsider feeling

The December holidays are filled with warm, fuzzy feelings: parents and their grown children get together to pay homage to cherished family traditions. There may be minor blowups and some discord, but the family is together again and that counts for a lot.

Then there comes a time in the life of almost every family when those traditions shift their ground, when our grown children start building their own family traditions with their homes and families at the center. And that can bring on a quietly sad trauma for us, the parents of grown children.

Here's one example of what I'm talking about:

Sam moved to Oregon 40 years ago--alone. None of his east coast family moved with him--not his mother, father, sisters or cousins. Sam married a west coaster and had one child, a daughter, who is now grown. Last year, she married a Portland man--a man whose family is three generations deep in that city. And that's what is making the holidays so difficult for Sam. In year's past, Sam, his wife and daughter came east for the holidays. They spent time with his sister and nephews in New York City, visited the tree in Rockefeller Center, window shopped the department store's Christmas extravaganzas and cooked Christmas dinner together. This year, his daughter, in the flush of her first year of marriage, invited her new Portland family and her parents to her house for a holiday dinner. Goodbye trip to New York and visits to all the cousins and nephews.

Sam's daughter decorated her house with garlands and tinsel. Made a good dinner for her first time at entertaining a lot of people. Sam's son-in-law's family was there by the dozens, people he barely knew. And that was the sad trauma for Sam. "It was the worst feeling in the world," he says, "to be a guest in my daughter's house and feel like an outsider."

Time and acquaintance may soften the feeling, but as our grown children put down roots with other families, we no longer make the holiday decisions or impose the traditions--regardless of how warm and cozy they felt for oh so many years.