Parents Supporting Adult Children Need Clear Financial Boundaries, Analyst Says

Parents supporting adult children financially face a delicate balancing act, according to CBS News business analyst Jill Schlesinger. Speaking on "CBS Saturday Morning," she offered practical advice for navigating these complex financial relationships.

Schlesinger emphasized the importance of setting clear boundaries and expectations. She suggested treating financial assistance not as a handout, but as an investment with defined terms and a clear end goal. This approach helps both the parent and the adult child understand the nature of the support and its limitations.

“

You have to treat it like an investment. It has to have terms. It has to have an end date.

Key strategies include developing a joint budget that outlines the financial needs and the parent's capacity to provide support. For any loans given, clear repayment terms must be established. Crucially, parents need to determine when it is appropriate to cease financial assistance, ensuring their own financial security while fostering independence in their adult children.

“

You have to have a budget. You have to have a plan. You have to have a budget for your own retirement.