There's no question that this pandemic has affected a lot of people economically. However, for adult children trying to leave the nest, it has certainly put a standstill on their plans. USA Today recently reported that four in 10 parents are supporting their adult children. While one in 5 parents have had an adult child move back in. But if you're a parent with an adult child, you want to do anything possible to help them launch financially. Despite the current circumstances, you can help your adult children in the right way financially. Here are a few good ways you can assist in getting on their feet today.
Help Your Adult Children Construct A Budget
When assisting your adult children, you want to still help them become self-sufficient. A great way to do this is to help them develop their budget and stick to it. Consider suggesting that they make a spreadsheet outlining their expenses and savings. Set up some columns for what type of items they spend the most on. Encourage them to analyze what could be cut out or reduced in spending. Be sure to stress to them the importance of paying themselves first. This will help them to start an individual retirement account for their future financial health.
Teach Your Adult Children To Be Responsible
It's okay to loan your money to help your adult children with big expenses like car repairs. But you must set boundaries regarding how often you plan to do this. Try to don't turn this into a regular thing. Teach them to use the money you loaned them responsibly. You could also make it clear to them that you are lending to them is a one-time thing. Strive to always encourage them to be responsible for their important expenses as much as possible. Advise them to use their credit card wisely. You don't want to find yourself enabling your grown children even during these times.
Encourage Them to Find Side Jobs
With the unemployment rate skyrocketing during the pandemic, this has caused millions of people to file for unemployment and find jobs outside their backgrounds. But if your child is fortunate enough to still have a job but it's not supporting them enough, encourage them to consider getting a side job to make ends meet. Sometimes, people take a second job or a side gig to supplement their income. Some examples of side jobs are work from home jobs like online tutoring or transcribing. Other common examples of side jobs are driving for shared car services like Uber or Lyft. Right now, the work from home opportunities is becoming especially popular during this pandemic in making some extra money.
Set Ground Rules When Moving Them In
If things become so hard that you have to move them in, be sure to set some ground rules with them. Keep the lines of communication open in discussing important bills that need to be paid. Give them some bills that they are responsible for paying. Advise them to buy enough groceries to carry the household for the month. By allowing them to pitch in more with the finances, you are helping them to become financially responsible.
Leaving the nest has become increasingly hard for young adults during this pandemic. The unemployment rate has increased for many and finding a job has become an uphill battle. But as a parent, you can still help your adult children launch into the real world despite these challenging times. By giving them more responsibility while they're at home, encouraging them to consider side gigs, helping them construct a budget, and teaching them to be responsible for their financial expenses, you will be helping them financially in the right way.