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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]A new “Parents & Finances” survey from Ameriprise Financial found that 45% are paying for the health insurance of their children over the age of 21. And it’s not just that: 84% are contributing to the purchase of a car, 73% are helping to pay for weddings, and 63% are helping with ongoing expenses like cellphones.

These adult children are expensive [/quote]

Adult children can be expensive, but these expenses might be more understandable than they initially appear. T

The cell phone costs could simply reflect convenience and complancy with an existing family plans, where the marginal cost of keeping the kid on the plan costs very little.

For health insurance, a significant portion of that 45% likely covers adult children still in college, or parents may already have family plans where the marginal cost of keeping an adult child on is minimal.

For car purchases—I plan to get my kid a car at 16, but honestly, it's as much a gift to myself as to them—no more late-night drives to hockey practice.

Wedding expenses have been a parental tradition for generations, so that's not a surprise.

What would genuinely surprise me is if a large percentage of parents were covering rent or providing regular cash subsidies to adult children. [/quote]

We don't cover rent or provide cash subsidies but we do cover all of the above for our 23 year old (car was bought used upon HS graduation). The other thing that wasn't mentioned, and we cover, is car insurance. $300 month for a male with 1 accident on his record is a lot when he's dealing with rent and utilities that take up 35% of his monthly paycheck. [/quote]

I have two kids. One is working, another is in college.  I think my kids have paid for most of the pricey stuff by themselves. For example - I did not pay for private school tuitions or college tuition. They were able to go to magnet public schools for free, and they got full tuition for state schools.  They were tutoring other kids for STEM subjects since they were in MS and they had quite a nest egg.  We also invested every cash gift that was given to them by friends and relatives into the stock market and just one good stock was enough for a brand new sedan after HS. They earned internships that paid big money and they won prizes in various tournaments and even before they left college, they had savings and investments of more than 100K.

Yes, we pay for medical insurance, let them stay home for free, food free, and everything in the house  is for free for them. In fact, once a year, we have a big celebration at home for our friends, coworkers, neighbors and relatives - and both my kids also invite their friends, and professional connections to attend - just so they all can network for free.  A number of our friends and family have found job opportunities through these connections.

I am going to help my kids save their money in all the ways that they can.  My kids do not buy designer clothes and bags, or go to super expensive places to eat. They are the frugal gen-Z members.  Their leisure travels happen through free flights and rooms due to their work travel.  The kid who is working will continually look to get additional professional certifications and skills and have the company pay for it.

Lastly, they are very good about getting the most out of their health coverage - from gym memberships, dental cleaning, dermatologist care, eye care, new glasses every year, annual physicals, extensive blood tests etc.   [/quote]

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