bank rates

Your Kid Is In Debt. What Do You Do?

Poll QuestionCNNMoney recently offered its readers some advice for parents to help their adult children “dig out of debt.”

It’s no secret that debt is an issue for many age groups – young adults in particular.

The article cites two surveys. The first, from PNC Financial Services, which found the typical 25- to 29-year-old owes more than $35,000, with only 40% of the group having student loans as part of their debt load.

The second, from Ameriprise, found that this age group feels “woefully overextended.”

So what’s a parent to do?

Spoiler alert: It’s not doling out cash.

We like – actually, love – that CNNMoney quotes experts who suggest parents not sacrifice their retirement savings to save their kids’ financial assets.

Instead, they advise using the opportunity to teach the ins and outs of budgeting, credit cards and student loans:

“Bailing your kids out doesn’t help them learn fiscal responsibility,” says financial adviser Deena Katz, an associate professor of personal financial planning at Texas Tech University.

Our only beef is that adult children should’ve learned these lessons long before they were set loose in the real world. Financial education should begin in childhood and continue into adulthood, not begin there.

But, better late than never. We guess.

n

n

n

n

Have you helped your adult child out of a financial jam?
View Results

Don't miss out on the next bank deal. Get the newest deals delivered straight to your inbox!

Comments (0)
1 Star2 Stars3 Stars4 Stars5 Stars (3 votes, average: 5.00 out of 5)
Loading...
No Existing Comments

Comments are closed.