As parents of adult children who are still living at home, it is important to have open and honest conversations about finances. Financial education should be a top priority and there are a few key principles that can guide these discussions.
In the first search result, Bank of America’s Better Money Habits encourages parents to focus on financial education by discussing budgeting. This is an excellent first step in guiding financial discussions with adult children at home. Sit down with your child and review their income and expenses. Help them create a budget that allows them to save for the future while also meeting their current needs. This will teach them valuable skills for managing their finances and can set them up for success in the future.
The second search result from MoneyHelper recommends asking adult children to contribute to household expenses as a way to encourage financial independence. It’s important to have a frank discussion about expectations and what is reasonable for both parties. If your child has a job, they should be expected to contribute to household expenses to some degree. However, if they are struggling financially, it may be necessary to adjust expectations and help them create a plan to get back on their feet.
Finally, Hellawealth urges parents to have a conversation with their adult children about their personal finances. This includes sharing key details such as where important papers are kept, any investments, and financial goals. This can be an uncomfortable subject to broach, but it is important to make sure your adult children know what to do in case of an emergency or if they need to help manage your finances in the future.
Overall, guiding financial discussions with adult children at home requires open communication, honesty, and a willingness to teach valuable financial skills. By working together and having open conversations, parents can help their adult children achieve financial independence and avoid future financial troubles.