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When Kids End Up Financially Supporting Their Parents

There have been a lot of stories recently about 35 year old men still mooching off their parents and living in the basement. But it turns out the reverse can be true just as often, according to this MSN Money article on whether you should bail out your parents financially. Many baby boomers just aren’t saving for retirement – and in every generation there are people who blow their money without worrying about the consequences. So what do you do if your parents are coming at you for money? Here’s what the article suggests:
A visit to a financial planner — paid for by you, perhaps — can also be a solution for parents who simply never learned how to budget or invest, said psychotherapist Eileen Gallo, co-author of the forthcoming book “The Financially Intelligent Parent: 8 Steps to Raising Successful, Generous, Responsible Kids.”

A trip to a counselor may be an even better solution for a parent whose spending patterns changed after divorce or death of a spouse, Gallo said. Sometimes depression or the need to stave off loneliness can prompt spending sprees as parents attempt to fill the hole in their lives.

Of course, bringing up these delicate topics is no easy task. You might talk about how much better your life is since you learned to budget, Gallo suggested, or bring in a third party such as a planner or a CPA to help you make your case that some retirement planning is essential. Sometimes, parents will listen to such authority figures when they’d be likely to dismiss any suggestions from you — particularly if you act like a know-it-all.

I’d point out that this is only going to work if you do it early. You can’t rely on a financial planner if your parents are 65 and suddenly realize they need some money to actually retire. You’re also going to have to put your foot down on any unreasonable money requests. And you can’t blow your money on your parents if it’s going to stop you from saving for your own retirement.

Discuss this on the Free the Drones Retirement Forums.

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