LAS VEGAS (CBS) — Despite a strong economy and low unemployment many adult children are leaning on their parents for financial support.
A Merrill Lynch survey last year found that 79% of parents financially support an adult child between the ages of 18 and 34. Some have their kids living at home, while others are paying their children’s bills. Another 25% said they would be willing to draw from their retirement savings to help their children.
CBS News Business Analyst Jill Schlesinger says high student debt and low wages for entry-level jobs are big reasons why many young adults are depending on their parents.
“You want to help your kids. You don’t want to enable them,” said Jill Schlesinger
Schlesinger suggests having a conversation with your kids and set some boundaries and ground rules like setting a move out date and having adult children contribute to rent, utilities, and groceries.
“Really what you want to do as a parent is create this independent adult child,” added Schlesinger