Sam Tabar asked an excellent question in one of his articles for The Huffington Post: When is it time for parents to stop offering their adult children financial support? According to Tabar, it is entirely normal and expected for parents to worry about their kids irrespective of their age. It then follows that many parents still pay for their children’s bills and other monthly expenses well after the latter get jobs and a steady income.
Unfortunately, it is not financially healthy for parents to continue supporting their children at their own detriment. A Fidelity survey found out that 47 percent of millennials still received some financial help from their parents. Fidelity surveyed young adults whose ages ranged from 25 to 35 years. The survey unearthed that employed millennials still relied on their parents’ support for the following expenses: entertainment at 14 percent, clothing at 16 percent, mortgage (or rent) payments at 12 percent, cellphone at 21 percent, utilities at 14 percent, and groceries at 20 percent.
Financial Impact on Parents
All the millennials surveyed had one thing in common; they had saved at least $9,100 of their income. This figure is relatively higher than the national figure of $400 released by the Federal Reserve. This shows that millennials are indeed capable of total financial independence from their parents. The Fidelity survey also discovered that half of the total millennials surveyed admitted to having investment accounts as well as retirement savings.
Parents need to limit the amount of financial support they are giving their adult children. Instead, they should use that money to plan their retirement. It is not wise for parents to risk their future financial health helping their already-capable adult children. Tabar advises that parents need to have a lengthy discussion with their children about financial independence.
Sam Tabar is an accomplished lawyer who is licensed to practice in New York State. He acquired his law degrees from Columbia School of Law and Oxford University. Tabar has worked in some of the biggest and most prestigious law firms in the United States of America. These include Skadden, Arps, Slate, Meagher & Flom, Merrill Lynch as well as Roth & Zabel. On top of legal practice, Tabar is also a hedge fund manager with over 12 years of experience. His impressive list of skills includes financial modeling, hedge fund regulation and structure, executive management, and financial analysis.
Sam Tabar has worked in some of the top firms in Asia as a hedge fund consultant, strategist, and manager. He worked at PMA Investment Advisors, a financial firm located in Hong Kong. He helped the company develop top-notch and lucrative asset raising strategies. Today, Tabar is the Chief Operating Officer (COO) of Fullcycle Energy Fund and the Chief Financial Officer (CFO) of Awearable Apparel. He has also invested in THINX, a startup that helps needy African and Asian women.