A recent article in Money Magazine prompted Lily at The Honest Dollar to write about parents who don't cut the financial cord to their children. Kids are expensive to raise and educate. Then, she writes, "you'd think that once a child graduates into the real world, the bleeding would stop. Not so."
The number of adult children living at home has increased 50% in the last 30 years, according to a University of Michigan study. "All told, a 2007 survey by Ameriprise Financial found about nine out of 10 parents give money to their grown kids for major expenses: credit card balances, car insurance, student loans, you name it," Money Magazine says.
Lily, a thoughtful young adult, writes that parents need to pay themselves first. She says, "I buy the conventional logic that a child can get loans for school, for a car, for a house -- a parent cannot get a loan for retirement."
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