| Here's an interesting stat: Parents in the U.S. spend $500 billion annually to help support their adult children. It's more alarming than you may think because it's twice the amount they contribute each year to their own retirement accounts ($250 billion). Sadly, even if these adult children live independently, parents often help pay for groceries, cell phone bills, car expenses, vacations and student loans.
It's time to stop the madness, folks. Granted, cutting the money cord can be difficult, especially if, as a parent, you're watching your kid struggle with debt. However, if you're risking your own financial security, it's crucial to close, or at least radically reduce, money flowing from the bank of Mom and Dad.
I had a recent conversation about this hot topic with a friend, Larry Sprung, who happens to be a certified financial planner at Mitlin Financial Services. Larry sees this with many boomer clients. He says he takes on the role of psychologist as much as a financial advisor when he tries to talk to parents who refuse to let go. They are preventing their children from learning the important skills needed to be successful in life, he says.
"There is a big difference between helping out a child in need and consistently being the source of funding for the lifestyle they are living," Larry said. "We are hurting them, not helping."
So, what's a parent to do?
"Start eliminating your [financial] involvement in the child's life," Larry explains. "Have them start taking ownership of things — maybe not everything at once — but slowly taking responsibility of certain bills and expenses."
In the end, it's all about building healthy habits.
For more cool stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow.
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