Feeling the financial strain of your boomerang children?
With steadily increasing tuition fees and an unstable market economy, a large portion of recent graduates have been left without jobs and have begun relying on their parents for income. This growing trend is known as the boomerang effect, where parents begin to take on the financial burdens of their adult children. In an online survey created by Tellwut Corp, 45% of participants have indicated that they are financially supporting their adult children in comparison to 55% of participants that do not financially support their adult child. When asked how they support their children, the participants revealed that: 10% purchase groceries, 10% provide free access to room and board, 6% purchase clothing for their children, nearly 4% assist them towards purchasing a car, 3% help them with their rent/apartment rent and 3% purchase electronics for their children. While it is undeniable that the fragile economy is a factor, young adults relying on their parents for income is also perpetuated by the growing consumer culture in which brands, and possessing various commodities have resulted in increasing debt and overspending. Thus, in order to keep afloat, many are relying on their parents for support. Interestingly, relying on ones parents is nothing new, as results indicate that many parents have been supporting their adult children for quite some time. According to the results generated, 14% of participants have been supporting their adult children for a few years, 5% have supported their adult children for one year and 5% have been supported for a few months. Some parents have gone as far as taking out a loan from the bank in order to support their grown children. When asked whether panel members have taken out a loan to help support their children, 23% of respondents stated yes, while 77% of respondents stated no. It is highly problematic when parents are willingly placing their financial security at risk in order to support their self-sufficient adult children. Not only does this prevent their grown children from having responsibility over their own finances, but it also enables entitlement issues in which these grown children feel it is necessary for their parents to provide for their needs and desires. When asked whether parents would continue to financially support their adult children in the future, the results revealed that 35% would continue to support their children; 29% don’t want to financially help their children, but would feel bad to stop and 33% indicate that they no longer want to support their adult children at all. From reviewing these results, it is apparent that parental instincts step up, despite the age of the child. Although it is understandable that parents want to help and have the best interest of their child, they must also ensure that they are not preventing their child from being responsible adults that are able to be financially responsible and make smart decisions where money is concerned. Therefore, it is important for parents to set limits and boundaries in regards to how much money they are willing to give their children if they want to help them to be financially independent young adults. And when their begging pleads begin to touch at your heartstrings, just think of the Bahamian cruise that is awaiting you once you retire.