An endless pipeline of cash to adult kids who have failed to launch has financial consequences for parent and child

By Rebecca Kennedy, Financial Planning Association of Colorado

With more adult children returning to “the nest” in their 20s, many parents have had to provide financial assistance to their sons and daughters for longer than they ever expected.  Even when an adult child lives independently, they sometimes still rely on mom and dad for help making ends meet or affording some of life’s luxuries.

Most parents are at least somewhat aware of the problem this presents as it pertains to their child’s ability to learn to function as an independent adult.  But they are unaware of some of the unintended consequences.