LOUISVILLE, KY (WAVE) - On average, it costs $233,000 a year to raise a child until they're 17 years old. So what happens after that? When should parents stop financially supporting their children? It's a fine and expensive line.
According to a new study by NerdWallet.com, 75% of parents admit to helping their adult children with finances. According to creditcards.com, one out of every four parents say they help their children, 18 and older, pay their cell phone bills, rent, and utilities. Eighty-four percent of them also admit to paying for their living expenses, while 70% are helping them pay off debt.
So when is the right time to pull the plug? Well, it depends on who you ask.
Time Magazine reports parents think their children should be financially responsible by 25, while their adult children say 27 is a good number. In reality, parents actually think their kids will become financially independent around 30-years-old, but their kids say, 32 is a reasonable age.
Deciding on when to cut the money cord isn't easy, and deciding how to do it can be just as tough for a lot of parents. Experts say the following steps can help parents and their grown children transition smoothly during this process:
- Encourage and foster their independence
- Set clear parameters
- Don't be afraid to provide tough love
- Expect something in return
- Give only what you can
- Set an exit strategy
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