You may have done everything to ensure your young kids were financially literate and responsible with their money. Bad luck can still strike despite these efforts, particularly in an unstable economy.
For example, more young adults are now moving back in with their parents, with money woes being one of the primary reasons for them doing so. While it’s fortunate that they have somewhere to go, many complicated feelings around personal failings can still arise during this time.
Whether you have adult children struggling now or fear your young kids may grow into challenges one day, it’s worth having a plan of action to support your sons and daughters long-term. Keep reading for some tips on how to do this.
Practice Empathy and Understanding
It often doesn’t take long for blame games to start surfacing when it comes to money problems. These circumstances should be avoided however possible.
After all, fingers can be pointed across the generations, but ultimately, such tensions lead to nowhere. Moreover, if you start criticising your adult child while they’re already down on their luck, it will only strain your relationship and put you in a weaker position when it comes to helping them.
Practice being a good listener first. Try to understand where they think they’re struggling with money management and its reasons. Even if you privately disagree with their take, you must build trust first so that your counsel can resonate with them more.
Of course, some measure of accountability is a good thing. There’s always a way to improve one’s situation, but you should present that lesson in a hopeful manner rather than a judgemental one. If you can nurture a positive and proactive attitude, course-correcting your adult child’s financial situation will become much more doable.
Recommend Online Resources
Many solutions to life’s problems can be found online. However, situations can be made worse if those looking for help end up in the more dubious parts of the internet.
Therefore, recommending useful resources yourself could be helpful. For example, budget planners online can help your adult kids break down their finances. After inputting their information, they can also receive personalised advice, giving them a plan of action to stick to moving forward.
More budgeting tips can be found with Up The Gains, which also provides insights on investment ideas and finance hacks. They can discover ways to invest with low-income salaries, stop living from paycheque to paycheque, and be inspired by side hustle ideas that could give them a new lease on life.
These resources mustn’t replace the need for a financial advisor that the Financial Conduct Authority regulates. However, they can complement such undertakings, giving your adult kids a constant, long-term reference for their moneymaking decisions.
Establish Financial Boundaries
It’s natural to want to help your kids financially. That said, if you oversteer in this regard, your actions may cause more harm than good.
It’s not nice to assume the worst in your adult child. Despite this, you should try to set financial boundaries so that both you and them have agreed upon expectations of one another. If you don’t do this, your adult child may come to expect you to cover high costs for them. A sense of entitlement could form, eroding their motivation to improve things themselves.
Sit down together and have a frank conversation about the support you’re willing to provide. For example, you could help cover costs because they are actively working towards finding a job. You can also suggest that they sign up for universal credit. These rules might go without saying in some households, but it’s worth reiterating so that all parties know where they stand.
Many parents live for their children. As your kids become adults, these balance scales need to tip more in your favour as you start thinking more seriously about retirement and your own needs. Never lose sight of your sense of self-worth, despite the help your adult kids might require.
Analyse Their Idea of Fun
The interests of a young adult, in particular, can be somewhat expensive. It could be that a few hard sacrifices greatly benefit their financial situation.
It could be worth reevaluating your adult child’s idea of fun and what it’s costing them. Some people are cutting back on streaming services, for instance, to make ends meet. Perhaps your adult child could follow that example?
Does your adult child have a needlessly expensive phone contract? Are they eating out and ordering takeaways instead of cooking their meals at home? Could they be purchasing expensive video games? These habits are incredibly common for people to enjoy, even if they’re struggling financially.
Remind your adult child there are plenty of ways to experience fun and fulfilment without spending so freely. After all, being a grown-up is more about self-discipline and compromise than doing whatever one wants to do. A series of small lifestyle changes can make a big difference when it comes to finances, so it’s worth making the suggestion.