ArcaMax

In an interesting twist, Pew asked the same question to both parents and their children. “For the most part, (the parents’) answers match those of the young adults surveyed.” Unfortunately, by helping their kids, some are putting their own financial stability at risk.

“Among parents who say they helped their children financially in the past year, 36% say doing so has hurt their personal financial situation at least some,” with lower income earners bearing more of the brunt.

When I tell parents to be careful about the support, I remind them that helping their kids today may mean that the tables could turn, and these same parents could need financial assistance from their kids in the future.

As Pew notes, “While it is more common for young adult children to receive financial help from their parents than it is for them to give help, 33% say they helped their parents financially in the past year...among parents who received financial help from their children, 38% say the help was for special circumstances, 31% say it was for recurring expenses and 30% say it was for both.”

Financial interdependence is not going away, which means that an honest appraisal of each family’s situation must consider a plan that can address the short term needs of the younger generation and long-term needs of their parents.

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(Jill Schlesinger, CFP, is a CBS News business analyst. A former options trader and CIO of an investment advisory firm, she welcomes comments and questions at askjill@jillonmoney.com. Check her website at www.jillonmoney.com)

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