More Americans than you might expect are living from one payday to the next. Some are struggling on low wages, others earn six figures and still feel fragile.
The good news: while the problem is widespread and driven by real economic forces, there are clear, practical steps people can take to build stability. Below I share recent statistics that reveal the scale of the problem, explain the main causes, and offer access to a plan you can start using today if you need help breaking this cycle.
Our second child just graduated college, and will be starting a new job soon. This is a pivotal time in her life and ours. Like many parents with college students, we have been paying for most of her living costs for past 22 years.
For the last few years, we have been easing her into self-funding her life by transitioning specific discretionary expenses to her, like clothing and eating out. Now that she has graduated and working full-time, the transition will expand to all subsidized expenses.
If you are also in the process of helping guide your child toward financial independence, then you may benefit from a worksheet application we deployed with our children when they started working full-time.
Using this worksheet, called Financial Independence Transition (FIT), can help you and your child get on the ‘same page’ about their financial future. Specifically, what they will be expected to pay for and when. Following a transparent and structured approach, like FIT, will also improve your relationship by reducing the chances of misunderstandings and disagreements about money, now and in the future.
To learn more about FIT, please read on.
Continue reading “How to stop financially subsidizing your adult children”