How to Keep Clients from Supporting Their Children Indefinitely

Core Insights - The trend of adult children returning to live with their parents is impacting the financial stability of many families, as parents are increasingly supporting their adult children financially [2][5] Financial Priorities - As clients age, their focus shifts towards asset preservation for retirement, yet many are simultaneously providing financial support to adult children aged 20 to 35, whose earnings are insufficient to cover living expenses [2] - Over half of parents surveyed report that their adult children withdraw approximately $500 monthly from them, with about 30% of parents spending $1,000 or more each month [2] Impact on Retirement - Financial support for adult children is leading some parents to delay retirement, take on part-time work, or reduce their own spending and savings [3][5] - More than a third of parents allocate 11% to 20% of their monthly household income to assist their children's job searches, which includes expenses for career coaching and networking [6] Dependency Concerns - Experts warn that while parents may want to help, this support can foster dependency in children, who may not learn the value of budgeting or financial responsibility [5] - A significant portion of parents also cover additional expenses such as clothing and streaming subscriptions, with about 25% providing a monthly allowance to their adult children [6]