Supporting an adult child is no small (or cheap) task
It’s a sad fact of adulthood, but turning 18 or 26 or even 30 doesn’t automatically mean adult children stop needing financial support from their parents.
In fact, nearly 75% of parents say they help their adult children financially with everything from paying down debt to daily living expenses like money for food and cell phone bills.
But at what cost to a parent’s retirement prospects???
By one estimate, supporting adult children could cost parents up to $227,000 in retirement. Could your nest egg withstand that kind of hit?
Of course, that quarter of a million dollars may seem like an unbelievably huge amount of money. Not to mention that it involves a projection of the possible future expenses of supporting an adult child, versus how much you could have if you invested that money.