There comes a time in every child’s life when they realize they understand something better than their parents. Perhaps it’s as a teenager when your parents can’t program the GPS, or maybe it’s as a young adult when you realize they don’t know how to invest. While a parent who still uses maps is forgivable, a parent who doesn’t invest is not.
Parents who don’t invest are likely to run out of money in retirement. When this happens, it often falls to their children to make up the difference. As the sandwich generation will tell you, supporting parents financially can be a burden, especially when you have your own kids to support.
“The more children can help their parents save and invest, the less of a burden they’ll face helping them cover the cost” later, writes Amin Dabit, the director of advisory services at Personal Capital in Denver, in an email.