We often picture Baby Boomers enjoying cruises and golf. However, the reality is often much darker. A silent crisis is unfolding in retirement communities. Parents are, in fact, draining their savings to support adult children. This starts with good intentions. It ends in financial ruin. Furthermore, the safety net is breaking, and nobody wants to talk about it.
The “Just This Once” Trap
It starts small: A car repair here, a phone bill there. Parents simply want to help. After all, they remember how hard it was to start out. Nevertheless, that initial “once” quickly becomes monthly. Consequently, the adult child learns to rely on this subsidy.
Transitions are hard. Yet, without a cutoff, dependency grows. The parent becomes the emergency fund. Ultimately, this prevents the child from building their own resilience.
The Housing Market Nightmare
Housing is unaffordable; we all know this. Therefore, Boomers are funding down payments. They are co-signing mortgages, and even paying rent for apartments they don’t live in.
This creates a massive liquidity problem. The parents’ cash is tied up in their child’s real estate. If the child defaults, the parents’ credit is destroyed. It is a high-stakes gamble with retirement money.
The Student Loan Anchor
Parent PLUS loans are a disaster. Boomers took them out to send kids to dream schools. Now, the payments are due. Because the kids can’t pay, the parents must. Worse yet, this debt cannot be easily discharged.
Social Security checks are being garnished. Retirements are being delayed. The cost of that degree is literally stealing their golden years.
Sacrificing Healthcare for Help
As Boomers age, medical costs rise. Still, many prioritize their kids over their health. They skip prescriptions to pay for a grandchild’s daycare. Alternatively, they delay surgeries to cover a son’s credit card debt.
This is physically dangerous. Your health is your most valuable asset. Neglecting it to fund an adult child is a tragedy.
The Emotional Blackmail
Guilt is a powerful weapon. Sometimes, adult children manipulate this. They might say, “If you don’t help, I’ll be homeless.” Parents then feel obligated to save them. They fear losing the relationship.
Boundaries are essential. Money and love are not the same thing. Therefore, saying “no” is sometimes the most loving thing you can do.
Stunted Growth for the Next Generation
Here is the hard truth: Bankrolling kids hurts them too. They never learn to budget. They never feel the sting of a mistake. Instead, they remain perpetual adolescents financially.
They need to struggle to grow. By removing obstacles, parents remove the opportunity for success. In short, it is a cycle of weakness.
Breaking the Cycle
Put on your own oxygen mask first. You cannot pour from an empty cup. After all, if you go broke, you will eventually become a burden to the very children you are trying to help. Cut the cord. Secure your future. It is the only way to truly protect your family.
Are you supporting an adult child, or do you know someone who is? Share your story below.
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The post Boomers Are Quietly Bankrolling Their Adult Kids—and It’s Breaking Them appeared first on Budget and the Bees.
