These days, young adults can't always support themselves.
College loan debt, a low paying economy, and also poor degree and career choices (let's be honest, more on that below) leave young adults in the position of needing mom and dad to foot some bills... and they are doing it.
Market Watch reports, "...80% of parents are covering or have covered basic expenses for their children after they turn 18, which could cost parents $227,000 in lost savings over the course of retirement..." (more here)
So what are parents covering for their adult kids? Here's the top 3:
1. 56% buy their groceries
2. 40% are covering Health Insurance (until they turn 26)
3. 39% are covering their phone bills.
Pat's take: the first 2 are necessary and I totally get them. The phone bill really isn't... but I do get it. I mean if they don't have one, how are you suppose to get a hold of them (not that they ever pick up LOL)?
I mentioned above one cause of this is poor degree choices. I think too often we push our kids to go to college with no real plan. We assume getting there is what matters, when in fact that's wrong.
Too many kids go to college because they are "supposed to." In reality, they need to pick a degree program that let's them use their actual strengths, and also translates to a job.
For example my career in broadcasting: You don't need a 4 year degree for this. Not because it's not worthy of one or lesser than other careers. But because colleges rarely teach current industry standards. Your education is often gained working for a professional station. A 2 year degree that gives you the basics and gets you internships and a foot in the door is a better path for radio.
Lots of fields are like this. Heck, trades like electricians and plumbers are DESPERATE for kids to learn them. You don't need degrees for these, just an apprenticeship.
The point is before you push your kids into debt, take a look at the world, be honest about their skills, and guide them toward things that make sense. This might help them stay out of crippling debt and you stuck with the bill. Just a thought.
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