The “Bank of Mom and Dad” is becoming increasingly common. As adult children move back home post-graduation, many parents find themselves financially supporting their kids more than ever. Remember your colleague who flaunted the latest designer wear and pricey lunches? Or that guy from school who was driving a brand-new BMW right after graduation while you were still taking the bus? Turns out, their secret might be financial help from their parents, rather than high-paying jobs or savvy investments.
As I look back, it’s clear that many parents are willing to go to great lengths to set their kids up. I recall house hunting back in 2004 where most potential buyers were parents scouting homes for their kids. At car dealerships, it’s not rare to see parents negotiating cars for their children, sometimes even footing the entire bill. This raises a question: Should parents financially support their children post-college?
On one hand, if a child is jobless and financially unstable, parental support could help them get on their feet. On the other hand, how will they learn to manage their finances if they’re handed everything? They might never learn the value of money if their lifestyle is funded by their parents, but then again, their spending does help stimulate the economy.
However, what really matters is if and how these children should repay their parents. If parents invest in their children’s future, it seems only fair that the children pay them back when they’re financially able to do so. Many parents could benefit from this return, especially if they’re retired and living on fixed incomes. Imagine how helpful a monthly check from their children could be in their retirement years.
Instead of brewing in jealousy when seeing others receive financial help from their parents, use it as motivation to advance in your own life. Remember, the key is not to let envy consume you but to inspire you to achieve your own success. Whether or not parents should financially support their children is a personal decision and varies by family. It’s not for us to judge. What’s important is understanding the value of hard work and recognizing the benefits of financial independence, whether you’re on the receiving end of the “Bank of Mom and Dad” or working your way up independently.
