It’s such a popular trend that they’ve made a sitcom about it and it’s not about outsourcing or globalization. Coming home near you is Boomerang Kids, the term used to describe the 85% of college students who plan to return home to mom and dad after graduation, according to CNNMoney.
As unemployment continues to rise, many parents will soon see their older adult children return to the nest as well. So what is a returning parent or child to do? Parents want to do the right thing but at the same time they need to consider their future well-being and happiness. Is Selling Your Future Structured Settlement Payments the Right Option? While you could laugh, point, and say I told you so, guilt would never allow you to do such a thing. Before you cast caution aside and dive into your savings or annuities, consider the following suggestions first.
Before giving or lending money to your children, see if any of the following apply to you:
- You have less than six months of your monthly expenses saved in an emergency fund
- Do you have credit card debt?
- You live paycheck to paycheck
- Borrowed against his 401k and still hasn’t paid it back
- You have not saved enough for your retirement.
- You are unemployed or facing unemployment.
- You have an annuity or structured settlement that you could sell, but if you do, you won’t be able to make ends meet.
- He has bailed out his son several times and continues to go into debt over and over again.
if you answered “Yeah” to any of these questions, you are not in a position to give or lend money to your children. As for the number 8, it is time for a tough love. If you are in the position and want to help them financially, establish clear guidelines. For example, if it is a loan, configure an amount, payments, etc. in a contract Make your child responsible. If the money is a gift, set your expectations in advance. Create an open dialogue with them about your finances.
Even if you can’t help them financially, teaching your children budgeting skills and how to research their financial decisions will help them become responsible and independent. Our financial tools can help guide them in the right direction. Remember, if you want to sell your annuity payments, you can sell a portion of your payments instead of the full amount. Also, they may be able to sell your unused items on eBay or Craigslist for money.
It’s my son/grandson, I can’t throw him out on the street
Although you are under no obligation to care for your child or grandchild once they have reached adulthood, they are still family and you want to help them. But you should set guidelines in advance, such as rent, chores, house rules, guests, and alcohol or tobacco use. Is there a set date for how long they can stay? Are there any consequences for not obeying the rules? Even if they can’t pay the rent, they still have to earn a living. The free ride is over and mom is not synonymous with a servant. Also, if your child has a child, you should also set rules regarding child care.
