Do you care about your young adult kids? What to do to help them become financially independent.Submitted by Financial Planning Solutions, LLC on January 24th, 2019
Let’s assume that you’ve done a good job as a parent. You’ve raised good, smart kids, put them through college and helped them get a start in life. But this group—often identified as millennials—has different challenges than you did when you started out. They are trying to balance work and fun, possibly a relationship, paying rent, saving, keeping up with social media and technology and, in contrast to baby boomers, likely have significant student loan debt to repay.
Perhaps more concerning is that “…millennials consider themselves far more financially savvy than they actually are…”1 In fact, 69% gave themselves top grades for their money management abilities.*
Some of this over confidence may be due to the fact that they have grown up with this powerful tool called the Internet where any question can be answered in seconds. The skill of being a good searcher on the web engenders great power and control in the hand of that person holding the smart phone.
I do believe that many in this generation are better educated about finances than their parents but when tested on basic financial literacy issues, the scores tell a different story.
As a parent what can you do to help?
The obvious things are to give them a financial book for their birthday or pay for a financial literacy class (best not to use that exact term). However, I don’t think my adult children would be too keen on that—maybe yours would be different.
The best advice is to suggest that your adult child meet with a professional. That could be your financial planner; it could be a relative that is in the planning business; it could be one of their financially successful peers who has hired a financial planner.
We are glad to consult with our clients’ adult children to help them get off to a good start. It is usually a pleasure to meet them and understand how they are different from their parents. But that is not for everyone. We get that. An alternative is to find an independent hourly financial planner. Most planners are interested in working with older, wealthy clients. But there are many good planners who might be willing to get them started on the right track. And that could make a difference that could last the rest of their life.
Interesting? Give us a call. We’re here to help.
Lyman H. Jackson
1 From a survey by the National Endowment for Financial Education and George Washington University, 2017.
* Based on research conducted in 2012 by the National Financial Capability Study commissioned by the Financial Industry Regulatory Authority’s Investor Education Foundation which asked more than 5,500 young people from ages 23-35 basic financial literacy questions.
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