Reply to NYT: 30 somethings still being bankrolled by their parents

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I have a friend who worked at a luxury car dealer - a surprising number of parents buy cars for their adult children

I used to work in a wealth industry - many UMC parents heavily subsidize their children’s lifestyles (pay for country club memberships, school, car, home, etc) because they want their children to portray a certain amount of success.

[/quote]

This isn't it at all.   Likely there are several things going on.

1.  They are worried that if they don't have some of those things that they will be tempted to move away to cheaper areas.

2.  they have the money

3.  They would rather give the money to family than the tax man at the time of their death

4.  they would rather be living and watching their kids enjoy the money rather than getting a pile of cash when they are dead

5.  They probably think that if they buy some of those things the kids can prioritize savings for their kids in a way they wouldn't otherwise be able to do and therefore continue the cycle for their grandkids

6.  Human nature - they want to get things for their kids that make them happy.

7.  Things like private school tuition are extremely tax efficient.

This is it - maybe not the whole list but this is how we will do things when the time comes and will have an up front conversation about why we are doing them.   [/quote]

DP, and all these reasons can be true, AND many wealthy parents care deeply that their kids appear successful, even when they could never maintain that lifestyle on their own.  "This isn't it at all"; how do you know?  Have you surveyed all wealthy parents?  [/quote]

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