Nearly half of millennials still receive money from their parents every month, according to a new survey by Money Under 30.
Grown adults, many college grads, are still living at home or at least relying on their parents to cover things such as cell phone bills, rent and other expenses. All of that is either slowing retirement plans or eating away at parents' savings.
“One of the things I would have a very honest conversation with your child about it is simply saying: 'Listen, if we have to keep helping you, and this further prevents us from saving and investing for retirement, then at some point, you're going to have to help us financially in retirement,'” says personal finance expert Erin Lowry, author of Broke Millennial: Stop Scraping By and Get Your Financial Life Together.
Lowry says a little tough love is needed to force adult kids to pay their own way.
“Maybe that's just covering your own insurance payment, or if you have a car payment. Certainly covering your own gas and transportation or helping out with the grocery bill.”
Whatever the agreement may be, Lowry says the ground rules have to be laid out well before your adult child moves back home.
“Part of the reason some kids tend to stay at home for longer periods of time or tend to rely on their parents is because they can,” she says. “So, at what point are going to draw the hard line and cut them off?”