5 Power Tips: Aid Your Parents Financially in Your 20s-30s
Understanding the Financial Burden on Young Adults
Many young adults live at home to save money for themselves, but a significant percentage also do so to help their parents financially. According to the Federal Reserve’s survey on the financial well-being of American households, 33% of adults aged 22-24 and 42% of those aged 25-29 live at home to provide financial assistance to their parents. This trend has been growing, particularly among the younger group.
Supporting aging parents can be a heavy burden for young adults, especially those just starting out in life. If you find yourself in this situation, here are five things you should and shouldn’t do to ensure your own financial future remains secure.
Press Your Parents for Financial Information
Asking your parents about their financial situation might be uncomfortable, but it’s essential to know how long your help may be needed. Discuss their budget, expenses, and financial goals openly, and establish a plan for how you will contribute to their needs. If their financial behavior is reckless, consider setting boundaries and only contributing what you can afford.
Don’t Go into Debt to Help
Avoid jeopardizing your own financial future by borrowing money or co-signing on loans to help your parents. Instead, only commit to what you can afford and work together to find ways to reduce their expenses or find additional sources of income.
Don’t Sacrifice Your Savings Goals
Don’t put your retirement savings or other financial goals on the line to support your parents. Remember the importance of securing your own financial future before extending help to others. If necessary, seek professional help to manage your parents’ care and find resources to assist with their financial needs.
Research Financial Aid Programs and Resources
Explore financial aid programs and resources that might be available to your parents, such as property tax discounts or assistance with rent and utilities. Some helpful resources include AARP, the Eldercare Locator, and the National Council on Aging’s BenefitsCheckUp tool.
Supporting aging parents is a noble endeavor, but it’s essential to strike a balance between helping them and safeguarding your own financial future. By being open, setting boundaries, and utilizing available resources, you can ensure that both you and your parents are financially secure.
Story at www.washingtonpost.com – 2023-06-21 14:00:00
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