Supporting grown kids financially can be a complex and challenging task for parents. According to a Pew Research Center report, about 6 in 10 parents have helped their young adult children financially within the past year. This support often includes household expenses, such as rent and utilities, which can be beneficial if parents save these payments for the child’s future use, like a down payment on a home. However, experts suggest a more structured approach to financial support. Instead of providing blanket assistance, parents can help with specific expenses, such as making a down payment on a first home or covering food and rent while the young adult is job hunting. This approach helps young adults learn financial responsibility and prepares them for independence.

Setting realistic deadlines and milestones, such as when a child starts a steady job, can also be effective. Gradually reducing financial support over time allows young adults to adjust and take on more responsibilities. Additionally, parents can help their children build wealth by purchasing property for them, as personal finance expert Lynnette Khalfani-Cox did for her own children. This strategy can provide a place to live and an asset that grows in value over time. Another approach is to help young adults set up retirement accounts and teach them budgeting and investing skills. It is crucial for parents to ensure their own financial stability before offering support to their children. By setting clear boundaries and providing guidance, parents can help their grown children develop financial self-sufficiency.