Are You Jeopardizing Your Future to Help Your Adult Kids? An Expert Guide for How to Not Do That

A man's hand holds out several hundred-dollar bills to the hand of a younger person. .

As life gets more expensive, one trend is accelerating: Parents are providing ongoing financial support to their adult children.

It might start with help covering rent, student loans or groceries, but more often, that support stretches further than expected. This generosity, while well-intentioned, can chip away at a parent's budget and derail financial goals.

I don't think anyone plans to be their child's financial backup indefinitely. But between high housing costs, job instability and student debt, many young adults need a hand to stay afloat.

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I've seen parents step in with everything from cosigned loans to early inheritance gifts. In many cases, they don't think of it as a risk — it's just helping family.

Financial help can add up fast

But the reality is, these gestures add up. I've worked with members of Affinity Federal Credit Union who have delayed retirement, paused saving, even dipped into emergency funds meant for health care or home repairs.

Some take on new debt to keep helping, assuming they'll catch up later. That's a hard cycle to break.

What doesn't get talked about enough is the cost of this support, which is not just financial, but emotional. Some trade-offs I see regularly include reducing retirement contributions, scaling back on health care or postponing life goals such as relocating or downsizing.

Other parents take out Parent PLUS or personal loans to cover a child's education or help with a mortgage. Parents do this out of love, no question. But few stop to ask: "Can I afford this without compromising my own future?"

Think of boundaries as tools

I encourage parents to think of boundaries not as barriers, but as tools that protect everyone involved. Being clear about what you can offer — and what you can't — prevents misunderstandings and keeps financial conversations grounded in reality.

At Affinity, we often guide members through these discussions with their children. That might mean setting a timeline for rent support or encouraging the child to contribute to household expenses.

When handled openly, these conversations actually strengthen family dynamics rather than damage them.

Community-based institutions such as Affinity are built for such moments. They help members make thoughtful decisions, not just take out a loan.

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That help might include financial coaching, planning tools that show how continued support could affect your retirement timeline or loan structures that minimize risk for older members who still want to help.

They also offer resources for mental well-being, because the stress of supporting others financially often takes an emotional toll.

Conversations head off misunderstandings

We've seen how impactful it can be when families engage in intergenerational planning. Parents and adult children who sit down with a neutral financial expert tend to come away with more clarity, fewer misunderstandings, and a better sense of shared responsibility.

Those conversations can be uncomfortable, but they're often the turning point toward independence on one side and peace of mind on the other.

Supporting adult children isn't the issue — the issue is doing it without a plan. You can be generous without putting your own future at risk. The key is being honest with yourself, and with your kids, about what's sustainable.

Your financial well-being matters. It's what makes you able to help in the first place.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.