Reply to Helping Setting Kids up for long term Financial Stability

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]1. Graduate from college debt free

2. Contribute as much into their IRAs each year from 22 onward (max it if you can)

3. Help them get into their first property. Avoid condos. Get them into a townhouse if possible.

I wouldn't help them *too much* as they need to develop their own wealth too, but getting them into a starter house and maxing the IRAs are simple steps that will pay off greatly in the long run.[/quote]

**too much** is all relative and depends upon the kid's personality.

We probably help our kids "too much" by most standards.  But our kids will inherit $10M+ each.  So we'd rather gift it to them in their 20s and beyond, rather than when they are 50+ and we are dead.

[b]IMO, as long as the kid is employed and "working hard", not wasting money and is developing a concept of saving, why not help them out? [/b] Not sure that making them live with roommates or in a dump of an apartment or driving a beater vehicle that constantly breaks down is an essential part of being successful adult.

They already know that if they have kids (our grandkids), education will be provided for (K-college if so desired).  Yes, their life is better than their friends---their friends have loans and do not fully save for retirement (2-3 years out of college) and they drive older cars.  Our kid still drives an older car and will continue to do so until it has issues, then they know we will help them purchase a new one. But they are frugal and budget and love to save.  By time your kid is 22+, you should have a great idea if they are responsible adult or whether you shouldn't gift as much to help them learn to be an adult.  But if you raised them right, they should be the first.

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This is key! We are nowhere close to you guys in NW but have enough to be able to pay for private college for both kids. However, we expect kids to start having some skin in the game.. Year 1, they need to earn enough to take care of 'other' expenses outside of tuition, room and board; year 2 - step that up to food and misc. year 3 - step that up to rent, food and misc., etc. The money we don't give them is put away in their name in a brokerage account they don't know about and will find out on graduation. Since we do their taxes, it's easy to hide this info. Just got done with kid 1 who was cribbing about having to pay rent and that "Sean's dad paid for everything". Imagine his surprise when he got the keys to his $30K brokerage account. 
Now.. hope it works out as well with Kid 2.
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