Let's be honest. No parent wants to see their kid failing to launch into adulthood. We all want our kids to go to school, get a job, and be independent financially. But things don't usually work out that way all the time. So how can you help your adult children right now?
Many young adults fail to launch as expected and end up staying at home. According to a recent study by the Pew Research Center, over 50% of American adults live with their parents now. This figure has grown exponentially in the last few months due to the pandemic.
Lack of money or poor financial management skills is one of the most common reasons why young adults are not transitioning to adulthood. Financial experts warn that the pandemic could make this situation worse. But all is not lost.
We have compiled five ways to help your adult child launch into adulthood without jeopardizing your future.
Help Your Adult Children Find Passion And Purpose
Although it may seem straightforward, young adults need to find purpose and passion in their lives to grow financially. During difficult times, it's easy to get swayed and lose focus.
In an era of social media where people are focused on how many "likes" they get, young adults can easily get distracted. So create time to have this conversation with your child. The secret is to harness that passion and let it help them achieve their purpose or goals in life.
Let them tell you what they want to achieve in life and then help your adult children plan how to get there. This will help them see things more clearly.
Impart Financial Management Skills
As mentioned above, not knowing how to manage money can lead to failure to launch into adulthood. Many young adults have poor habits because personal finance management skills are not emphasized in most of our schools.
If your kid has a job but struggles financially, maybe they just need financial literacy skills. So talk to teach about money. Show them the benefits of saving, living below their means, and setting goals to work towards.
Help Your Adult Children Understand Costs
Though it may seem straightforward, many adults struggle to fully understand the cost of things. That's why many people rush to buy things without thinking twice.
For example, it is not uncommon to see people buying expensive clothes, trendy devices, and going on lavish vacations to keep up with the Joneses. If you suspect this is affecting your adult child, help them understand the real cost of things.
Help them see every purchase based on the number of hours they have to work to cover these costs. And don't stop there.
Look at their paycheck and taxes. Find ways to help them reduce their expenses and teach them to save money for retirement, emergency, and more. And more importantly, teach them about debt and the benefits of achieving financial freedom.
Help Your Adult Children Find Work
Many Americans have lost jobs due to the pandemic. As such, it may be more difficult for adult kids to leave the nest if they have no job.
With that in mind, it may be wise to help your kid find a job as soon as possible. Some of them may be struggling to find work as things slowly return to normal.
Help them look for jobs to apply, review their resumes, and use your networks. Encourage them to take any job available right now.
Employ Tough Love
Sometimes, adult kids need tough love to push them toward financial independence. So if they're unable to launch after everything fails, you may have to enforce stricter measures.
For starters, set out clear expectations. Ask them to help with house chores, buying food, and charge them rent. These are things they will need to handle on their own in the future.
In any case, you may choose to save the rent they pay, so they have a cushion when they finally leave the nest. Apart from helping them learn to be independent, tough love can help them build skills they will need to thrive on their own.
As parents, we all want our children to succeed. So if your child fails to launch, don't beat yourself. Try to understand why that is happening and find ways to help them out without jeopardizing your financial future. We hope these five tips help you see them through.