Suze Orman is recommending that Baby Boomers and Gen-Xers cut off their adult children.
After a USA Today study found that “65% of parents give their adult children (ages 22-40) some kind of financial support.” On average, that support amounts to $718 each month!
Orman suggests that parents still supporting their grown children to tell their kids that they are “no longer their bank accounts”, as the global economy slows, threatening peoples’ retirement accounts.
She also suggests that those whose adult children are still living at home to pay rent.
“And I really want you to have an open mind about charging some form of rent. Doesn’t have to be a lot. But it should be something. And it should be direct deposited to you every month on the same date. That’s a huge financial skill you’re teaching right there. If you want, you can tuck that money away and when the time is right you can return it to your kid to be used for the security deposit on a rental, or to help boost their growing emergency fund.”