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The gist: “I told you you couldn’t afford that house! You have $100 in the bank! I’m not giving you any more money!” When he hung up he was so overwrought he was literally struggling to catch his breath, while his two buddies at the table shook their heads in sympathy.
I’m wondering how often this scenario is playing out across the country (hopefully in private rather than over scrambled eggs in a public place). I recently met another man in his 70s who is retiring and has been secretly funneling money to his adult daughter since his son-in-law was laid off a year ago. The problem is, he can’t afford to do it anymore and doesn’t know how to tell her.
A recent survey suggests that 45 percent of middle-aged workers with grown children provide financial support. One-third of parents over age 45 provide free housing or pay the rent for children over 25. (See this Yahoo!Finance column for a look at the risks of borrowing from parents.)
I think that’s bunk. The idea that a parent is a not an ATM should be clearly established when kids are young. Lessons of independence can be instilled in children as young as age 5 (I’ve been doing it with my kids since that age).
Once I began giving them a regular allowance, I would ask if they had brought money with them when they demanded something in a retail store. You only have to do this once or twice and they will begin bringing their wallet. Is it hard for me to say no sometimes? Sure. I got over it.
That’s not to say we’re stingy with our kids. We pay for the necessities, school tuition and enrichment classes, and give gifts at birthdays and holidays. We also match 100% of any money they put in savings. But when my eleven-year-old asked for an Ipod Nano this week, I said I would pay for half, and then we sat down to figure out how she could earn the other half.
Fundamentally, it’s unkind to subsidize children on a regular basis. Isn’t our most basic job as parents to shape independent, educated and productive adults who can take care of themselves and contribute something positive to the world? You have to establish the guidelines from an early age, get them excited and proud about earning their own way. It’s one way to avoid a soul-wrenching screaming match by cellphone decades later.
Laura Rowley writes the Money & Happiness column on Yahoo! Finance. This post was cross-posted from her Money & Happiness blog.
