The cost of family loyalty
Supporting adult children may feel like a natural inclination for parents — with 47% continuing to offer financial help to their kids well into adulthood, according to a survey by Saving.com.
Traci S. Williams, a board-certified clinical psychologist and certified financial therapist, explained to the Washington Post that the key to avoiding financial enabling is open communication.
“It is best if the family has a conversation to establish house rules, outline family roles and assign financial responsibilities,” she said.
However, the roles and responsibilities in this family seem to be up in the air, as the father shared on Reddit, “[my son] doesn't even do his job and I am always doing the brunt of the work. I have decided to take my business back and all my clients and work on my own. He can figure the rest out himself. I'm tired of his lack of commitment.”
In this instance, supporting his son is not only threatening his financial health, especially at retirement age, but is also causing a serious rift with his other two adult children who feel sidelined by their brother's ongoing drama.
While the financial strain on this family and the business may be significant, the emotional toll on family relationships can be just as costly.
Kiss your credit card debt goodbye
Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.
Explore better ratesCreating boundaries
When it comes to adult children, setting boundaries around financial help is important in making sure they don’t automatically expect monetary support.
According to a survey by Savings.com, 58% of parents admit they’ve sacrificed their own financial security for their adult children. However, without boundaries, that support can quickly lead to an unhealthy dependency.
Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida, told CNBC, “You need to create boundaries and figure out a balance.”
In the case of the Reddit user, the lack of boundaries led to significant frustrations. Both he and his wife found themselves continuing to support their son, despite his lack of commitment to the family business.
Other Reddit users chimed in with strong advice, urging the father to take more decisive action. One commenter wrote, “You don't need Reddit, you need a lawyer, like yesterday. The longer you put this off, the worse things are going to get.”
Another added, “It really seems like there are huge, systemic issues in your family and you've mixed your family with business for a long time.”
Without clear expectations, well-intentioned support can easily turn into a cycle of dependency — and can even be the downfall of a family business.
This 2 minute move could knock $500/year off your car insurance in 2024
OfficialCarInsurance.com lets you compare quotes from trusted brands, such as Progressive, Allstate and GEICO to make sure you're getting the best deal.
You can switch to a more affordable auto insurance option in 2 minutes by providing some information about yourself and your vehicle and choosing from their tailor-made results. Find offers as low as $29 a month.
