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

Money Matters: Our helping hand is bigger and broader than ever before

It's a trend that's grounded in fiscal reality. Our kids--twenty-somethings and 30s--are living with us, nearly 25 percent of them, according to several surveys. The surveys also find that they've moved into their childhood bedrooms for monetary reasons.

Although many of them are on the first rung of career jobs or are earning decent money in the gig economy, they see how much it costs to live in the world.  They may be carrying sizeable student debt, buying cars on credit or face a rental market that's unfriendly.  The national median for a one-bedroom apartment is currently around $1,500 a month, according to Zumper, but rents are significantly higher in cities like New York ($4,300), Boston ($2,990), San Francisco ($2,970) and  Miami ($2,600), cities where young adults are drawn to live.

For many of our adult kids, living at home isn't a sign of social failure. It's a way to save for a future goal--whether it's to buy a place of their own, start a business or have a decent nest egg before plunging into marriage. Sometimes the move home is transitory. A friend of mine's 34-year-old son relocated from a city in the Midwest to his hometown where rents are high. He's living home while he searches for an affordable place. My friend would like him to speed up the search--she's finding the adjustment to his presence tricky--but he doesn't seem to be in a hurry. For him, the price is right and the refrigerator full.

Whatever their reasons for living with us, we're party to a parallel trend: 65 percent of us (the parents) are providing some form of financial support to our adult children between the ages of 22 and 40. According to a USA Today survey, housing topped the list (either paying their rent or letting them live free at home), after that came help with the cell phone bill, then car payments and more personal stuff like clothing, their takeout bill and entertainment (Netflix and the like). Dead last: health insurance or medical bills.

A good number of us--one in three--report that the support is a strain on our budgets. Nonetheless, we have not set limits. Nor have we let our kids--or ourselves-- know for how long we’re willing to put them up and help out.

painting: Cezanne

 

 

 

Observation: Meghan Leahy on parenting and grandparenting 101.

Are we ever 100 percent pleased with the way our kids are bringing up their kids? There's always something we think they're getting wrong. That's what's behind Meghan Leahy's  observation on our role as parents of adult children and as grandparents within their family dynamic. (Her comments are in answer to a  grandmother who is spending the summer with her daughter's family and is worried about her grandchildren's chaotic bedtime routine.) 

"Your daughter and grandchildren are very fortunate to have you for the summer. The most hopeful statement in this letter is, “My plan in being here was to help my daughter and accept things as they are, and to establish a trusting relationship with the children.” That is a worthy goal, and if you can do that in your time there, that’s enough. In fact, accepting things as they are is one of the most powerful ideas a person can aspire to: to not be feckless, but to understand how little we have control over. Keeping a stance of humility is the best way to be of true assistance. You won’t force your notions, opinions or judgments upon your daughter and grandchildren, and instead will be of true service.

painting:Renoir

 

 

Money Matters: When sibling rivalry crosses the helping hand

Many of us take great pleasure in helping out our children financially. If we have the wherewithal we're likely to help them with a downpayment to buy a house. (Roughly 20 percent of U.S. homeowners received gifts or loans to help them buy a home, according to Money Magazine, and most of that money came from us--parents of grown children. Money Mag tells us that if the “Bank of Mom and Dad” were a true business, it would be the seventh biggest mortgage lender in the country.)

There is at least one hitch to all this Mom and Dad banking. If we have more than one child, they can get ensnarled in bad feelings--toward us, toward each other--over money we've given one child and not the other or others. The business of giving them what we might call "an advance on their inheritance" can be trickier than writing a will. With the 'advance on inheritance" we're still around to feel the sting if one child feels favored over another.

In a letter to Philip Galanes and his Social Qs column, a reader was feeling that kind of slight.  Her parents had let her know that they had given her sister "a chunk of money to help with a down payment on a house." They told her she wouldn't be receiving a matching sum and for a rational reason: The writer and her husband already owned a house, which they were able to buy with a generous gift from his parents. "My parents aren’t wealthy, so I understand their decision. Still, it stings!" From her perspective, the money they gave to her sister signifies that the parents love her sister more than they love her.  The writer wants to know whether to raise her grievance with her parents.

Galanes reminds the reader and all of us that the parents’ money is theirs. "Whether they are fabulously rich or just squeaking by, they can spend it however they like. And adult children have no entitlement to it."

Over and beyond that, Galanes acknowledges that "sibling rivalry for parental love can be painful" and that the writer should talk to her parents about their decision. But his final reminder in this family drama is one we should all take into account at gift giving or will-writing time:

And for parents: If you intend to make unequal gifts, it can be helpful to discuss the issue in advance. Feelings about parental gifts can run strong!

We are free to do with our money as we see fit. We don't owe our children anything now or in the future. But that's not really the point. What we do owe them is a sense of fair play--an explanation of why we've chosen to do as we have and why, especially when we choose to help one child and not another.

painting: Rothko, Untitled

Post Pandemic Issues: Can we close our helping hand to our non-vaxxed kids

The country is riven by the vaccinated versus anti-vaxxers. Infection rates are escalating among the unvaccinated. That's allowing new, virulent variants to thrive, threatening our health and the return to normal, whatever that may be.

What happens when the unvaxxed hits home, when it's not the rogue uncle or distant cousin but your adult child who won't get a shot?

This touchy issue popped up in Kwame Anthony Appiah's New York Times column The Ethicist. The father of an unvaxxed son wrote in with that quandary plus a further complication. Until the son gets a job, the dad is paying his son's share of the rent on an apartment the son shares with his girlfriend. But the son's job search is complicated by his reluctance to get vaccinated. The reader posed this argument and question:

I told him that future employers would most likely insist on his getting vaccinated, and that his unvaccinated state would have financial implications by delaying his start date and income until he could get fully vaccinated. I said that his refusal to get the shot would cost money and that I wasn’t sure I would continue to support him during that gap period between accepting a job and starting work. He became upset, maintaining that he was already compromising by agreeing to become vaccinated if a job required it and that my withholding support was unfair, especially given his willingness to compromise by getting the shot.

Who’s right here? 

Appiah covered the importance of getting vaccinated and then zeroed in on the issue of whether the father, who's nearing retirement and feeling a financial pinch, is right to cut off financial aid if his son refuses to get vaccinated.

Vaccination aside,  Appiah made a point that will resonate with all of us who offer our grown children financial support of any kind. 

If he’s willing to accept an employer’s terms, he should be willing to accept his parental benefactor’s. After all, a parent isn’t generally obliged to provide financial support to an adult child.

Given that you have allowed him to depend upon your generosity, however, you would do well to withdraw that support gently, or with ample advance warning. I know it seems paradoxical to say that a gift can entail an obligation. But in all sorts of circumstances, it can. Suppose your tractor-owning neighbor makes a habit of clearing your driveway every time you’re snowed in. Because of her generosity, you don’t make alternative arrangements. If she suddenly has a change of heart, you’re worse off after the next blizzard than you would otherwise be. That doesn’t bind her to a lifetime of plowing your driveway; it does mean she owes you notice.

In the end, though, respecting people’s agency doesn’t mean you have to underwrite their every mistaken belief. Your son is free to reject your support if he wants to persist in error.

Daddy Indulgence: If we're guilty of over-helping our young-adult children, is that bad?

Scratch someone who doesn't have children and they'll probably tell you: Too much. That would be in answer to the question: Do parents do more than they should for their adult children. I had a single co-worker who dubbed my husband "Daddy Indulgence" for such "crimes" as paying for our children's college tuition. (We had saved up for it for years.)

My co-worker's teasing was good-natured. (She hoped our kids appreciated the gift.)  But still, the "daddy indulgence" trope persists as a reflex reaction.  There's a reason for its apparent growth recently: Although our children's march toward financial independence moves forward, it's doing so at a slower pace than our generation's.

According to a Pew 2019 survey, financial independence is

"one of the many markers used to designate the crossover from childhood into young adulthood, and it’s a milestone most Americans (64%) think young adults should reach by the time they are 22 years old....But that’s not the reality for most young adults who’ve reached this age.

The reality is: In 1980, roughly one-third of young adults were financially independent by the time they hit age 22; in 2018, that was down to one-fourth. When Pew looked more broadly at young adults ages 18 to 29, though, the survey found financial independence has been largely stable in recent decades, with women closing a gender gap.

There are other markers that suggest our adult children are less independent than we were. Here's Pew again. (This was based on a 2019 survey in those halcyon pre-pandemic days; Covid-19 has likely skewed a lot of the numbers and not in a positive direction):

 Today’s young adults are staying in school longer and are marrying and establishing their own households later than previous generations. A growing share are living in their parents’ homes well into their 20s and even early 30s. (See this Parenting Grown Children post.) Some of these changes are linked to economic challenges, while others may represent a realignment of goals and priorities.

As to the indulgence side of the equation, the Pew survey found we were helping out our kids with the basics-- groceries and housing--plus tuition. 

Aside from the question of whether these 'indulgences" augur good or ill for our adult children, where does the finger of blame point? Pew is quite unequivocal: The majority of the public says, as my co-worker teased, parents do too much for their young-adult children and most parents of adult children disagree.

How do our kids feel about the aid and assistance? Pew asked that question as well. Turns out we're in sync with our kids on this one:

Young adults themselves are largely satisfied with what their parents are doing for them. A majority (65%) say their parents do about the right amount for them – similar to the share of parents of young adults who say they do about the right amount for their kids.

 

Should we reboot the tough-love rules on loans to our kids during the corona crisis?

As we welcomed in the new year of 2020, our adult kids were on a steady financial path: working, paying their rent, fiscally independent. Or they might have been in mid-struggle but showing promise. Then along came the coronavirus pandemic and its devastating effect on the economy. Our adult kids may now be in financial trouble. Some have moved home to shelter with us--and to save money on rent. Some are keeping their physicial distance but asking for tide-over loans.

Should we apply the same rules to helping them out now as we did pre-disaster? Is the Coronavirus crisis a time for stronger-than-usual doses of compassion?

To judge by anecdotes that are on the loose in the media and statistics from Pew, whose pollsters follow inter-generational issues, most of us are welcoming--or allowing--our grown kids to move back in with us. More about that fiscal helping hand in a future post.

What about a loan to help them survive during a failing and flailing economy? According to a survey by Commonwealth taken in the relatively optimistic days of April,  more than half of Americans are worried about the virus’ impact on the economy and their financial lives.

If one or more of your grown kids needs help in these extraordinary times, here are some points to pop into the decision hopper:

A run on the Bank of Mom and Dad. That is, one of your grown children could ask for a loan that's a reasonable request and that you want to fill. But our finances have their limits. Are there other children or close relatives--a brother, a parent--who might need help as well. A loan should be seen in the context of how much you can afford to lend and how many key borrowers might have needs.

Lower expectations. You may want to make the loan a loan--not a gift. You may even write out a loan agreement with interest rates and repayment schedule attached. But gird yourself for disappointment or, better case, lapses. These are truly hard times, even panicky ones for those who don't have money in the bank but do have a family to raise--even if income has been reduced or jobs lost. Unexpected expenses and setbacks happen.  If we're the ones with resources that can survive a hit, we may not like it but we should be prepared to realize the hit may be permanent. Here's a word of advice from a financial counselor: If it's a loan and not a gift, formalize it with a note about terms and then let it go. "Don’t bring it up at holiday dinners. Don’t give reminders. If you can’t do that, we suggest you not make the loan at all.”

Guarding against a default. Repayment is a bigger issue than ever (see above) but if you've been more generous than you can afford to be and this is money you absolutely need repaid, let your borrower--your grown child or other relative--know the financial reasons in detail. It helps to share why you need this money back, what it has been earmarked for, what setback you would face if the money isn't repaid. Nothing beats communications and transparency.

 Sibling rivalry's ugly head. Lending money to one child  may make the other feel left out, or loved less, or that their eventual legacy from you is being diminished. They may figuratively stomp a foot and whine, "It's not fair!" All kinds of ugly thoughts and emotions can rise up and strike our kids.  Which is not to say such behavior should be honored.  Instead, try a pre-emptive strike via communication about why you're doing what and how it will or will not affect the non-borrowing child. It won't hurt to mention the stress we are all under during this national crisis.

A grudge against your spending  habits.  If they're in need and have to pay you back--or if you decide not to help them out--resentments about how you spend your money can pile up. They may point an accusatory finger at your going on a covid-safe vacation or buying a new car.  What do the experts advise? It's your money to do with as you wish. But you might want to reassure them you're not going to let them starve.

 

 

Observation: Philip Galanes on keeping indulgent gifts to grown-up kids on the down low.

When our children were just starting their careers and in the midst of struggling to meet their rent, cell phone bill and car payments, we may have helped out--a car payment here, a refilled refrigerator there; dinner out or a new sweater in just the right color. If we could afford it, we enjoyed doing all that and maybe a little more.

But there comes a time when it's counterproductive, when it makes our grown children feel like they aren't independent adults.  In asking Philip Galanes in Social Qs what to do about parental overindulgence, a reader (a young woman in her 30s) described how it made her feel when her parents "keep buying things for me and my kids (groceries, toys, clothing) and refuse to let me pay for anything. I've told them we don't need gifts, but they ignore me. I feel awful."

Here's the advice Galanes handed out in how to deal with us--the parents who aren't giving our adult children the gift of acknowledging they are grown up and self sufficient adults.

Sit them down one quiet evening and say: “It’s largely thanks to you and your unwavering support that I’m in such good financial condition for my age. I hope you know that. And I think it’s time we put our relationship on more equal footing.”

Then, depending on your means (and inclination), buy them something you know they will appreciate: new winter coats, a gorgeous filet mignon from the butcher or a sunny weekend in Coral Gables. No need to become a spendthrift. Just try a loving gesture. It may wake them up to your well-founded gratitude and the true financial picture here.

This doesn't mean we can't pick up the check for dinner or surprise them with a beautiful sweater. It's just that it should be an occasional treat, not a habit.  And we should let them treat us occasionally too.

When should our adult children be able to stand on their own financial feet?

By the time they're 22, our children should be financially independent. It's a milestone most of us think they should reach as young adults. At least, that's what a survey by the Pew Research Center finds.

The reality (now it's U.S. Census analysis doing the finding) is that only a quarter of today's 22-year-olds have met that milestone. That's a much smaller percentage than 40 years ago when many of us were young and in our 20s. Then, one-third of 22-year-olds had crossed over the point that is supposed to distinguish childhood and the comforts of the parental home from stand-on-your-own adulthood.

This slippage in independence raises the question: Are we over-coddling our kids, offering too much helping hand and not enough tough love? Pew finds that the public perception is that, yes, we're we're doing too much for them. Here's what those in the Pew survey had to say about today's parents of young adults:

When those who say parents are doing too much for their young adult children were asked in an open-ended format in what ways they are doing too much, 43% pointed to financial assistance. Some 37% said parents are trying to solve their children’s problems for them or are afraid of letting their children fail. About one-in-five (23%) said parents are doing too much for their adult children by letting them live with them. And 4% pointed to providing babysitting and child care for grandchildren as examples of how parents are doing too much for their adult children.

A lot of us are guilty as charged. Pew found that roughly six-in-ten parents with children 18 to 29 gave their children a lot or some help in the past year. While some of that assistance was a one-time shot, a good deal of it was for recurring expenses, like household, medical or housing assists or educational expenses.

In fact, educational expenses loom large in the breakdown of the reaons we give, though it reflects parental income. According to Pew:

High-income parents are more likely than those in lower income groups to say the financial help they gave was related to education. Two-thirds of parents in households earning $100,000 or more a year say the support they gave their adult children was tied to educational expenses, compared with 53% of parents with incomes between $75,000 and $99,999, and fewer than half of those earning less than $75,000.

To give those educational dollars some perspective, in the past forty years college tuition has grown four times as fast as inflation and eights times more rapidly than household income. The amount owed on student debt--whether it's the students or taken on by their parents--is estimated to be $1.5 trillion. That's more than what we Americans owe on our credit cards and auto loans combined. If our kids are one of those 45 million owing that debt, they're starting out their adult lives with a lot of I.O.U. on their shoulders. No wonder today's parents feel pressured to help out if they can.

(You can see more details on the Pew survey here , including the definitions the foundation used for financial independence and gender differences in the findings.)

Money Matters: Two tips about lending money to adult children

You've heard it--I've said it--over and over: It's a tricky and emotional  business lending money to adult children. We want to be helpful--if we can afford it, and sometimes even if we can't. But we worry about why they are unable to manage on their own. That said, financial advisers speak as one  in saying that if you do lend money to your grown children, do it like a banker would: review their financials; set the repayment contract in writing.

Ah well. Seems like such a cold thing to do when it's your loved one. Michele Singletary, who writes a syndicated personal finance column, also hands out that "get it in writing" advice, but her recent column on the subject of loans to adult children made two points about that lending process that may clarify your perspective:

On the importance of reviewing their finances:

Upon review of bank statements, you may find evidence that your adult child is living above his means, such as eating out a lot. Don’t lend money to people who earn enough to cover their expenses, but can’t because of mismanagement. That’s not helping. That’s enabling bad behavior. Why should they enjoy the fruits of your frugality while they are living it up?

On the need to find out why they're tapping the bank of mom and dad for loans:

This is not about being hypercritical of their lifestyle. Just because there’s a request doesn’t mean there’s a need. Perhaps your adult child is underemployed. Maybe your daughter and her husband bought too much house and need to downsize. If your adult child is constantly asking for loans, there’s probably an underlying situation that needs to be addressed. Your handing over money all the time prevents this analysis.

Money Matters: The Wisdom of the Crowd on loan versus a gift to adult children

Okay. So crowdsourcing wisdom is just another way of saying Reader Comments on an issue that cuts close to many of our hearts and pocketbooks. Often, though, those comments are more than passing remarks. They carry kernals of wisdom based on years of experience. So here is commentary from my readers responding to Michele Singletary's advice on when to cut the financial aid to adult children and from those who responded to a New York Times article calling for tips on managing household finances--with loans/gifts to family members eliciting commentary from two readers. 

First up: General advice from a New York Times reader on financial assists, whether it's your kin or someone else in need:

“If you do give money to someone, you have no right to dictate what they do with it....This principle works for all kinds of donations. If I decide to give money to a family member, a person experiencing homelessness, or an institution, I have decided to trust their judgment, and I never think about it again.”

From a Parenting Grown Children reader responding to Michele Singletary's comment that, if you give to an adult child, the giving should help push that child toward financial independence:

"I like the quote from Singletary. Every child and every situation is different. We can cut those cords but sometimes we need to tape them back together for a short while in order to keep our children making forward progress."

While this reader doesn't address lending money to adult children per se, her comments could apply across the board. She wrote to the  New York Times to say that when she was 10 years old, she lent a nickel to a classmate in Sunday school, and never got it back.

“I decided that I would never loan money to anyone again. I’m nearly 65 and I’ve kept my vow. I only give money away. I let people know it’s a gift and nothing is owed, in any manner. And I do it with a smile and graciously.”