If your kids are asking you for money and you just can’t say no, you might be financially enabling them.This week on WBIR’s Sunday Money, Paul Fain discusses what it means to be a financial enabler.
BEGGING FOR MONEY – THIS IS IN A CHILD’S JOB DESCRIPTION!
– “I’ve just got to have it.”
– “I really will pay you back this time. I promise.”
– Research suggests that about 60% of parents provide financial support to children who are out of school.
WHY CAN IT BE A HARMFUL MONEY BEHAVIOR WHEN YOU CAN’T SAY NO?
Children may develop an attitude of entitlement and a disabling financial dependency on others.
WHY DO PARENTS ENABLE?
Out of love and good intentions. Often driven by feelings of guilt and shame.
BUT FINANCIAL ENABLING CAN BE DAMAGING….
- Sacrificing or jeopardizing your financial well-being for children.
- Feeling resentment or anger after giving money.
- Usually ends up damaging the relationship.
- Result in adult children failing to develop their own financial skills.
WHAT CAN YOU DO TO CHANGE?
You may need a trusted guide to learn new behaviors: a counselor or financial planner might be a place to start.
FAST MARKET FACT: VIEWER QUESTION, HOW MUCH DO I NEED TO RETIRE?
Savings Value at 65
Annual Income from Savings
QUESTION FOR OUR MONEYMAN?
Want to learn more about financial enabling? Do you have other general questions about financial planning or investing? Send your questions to our Knoxville Certified financial planner Paul Fain or directly to Paul@assetplanningcorp.com!