Finding Financial Freedom Through the Decades – The 20s: Special Note to Parents
Ready to learn how to help your children with their financial planning during their 20s? Check out this guest article from Stacy Rhodes!
My parents pulled me in front of our computer and unveiled the car they found after a long, intense search – a forest green 2000 Honda Accord. This day had been held in anticipation as I had driven our red Pontiac minivan (“Racin’ Ruby”) throughout my high school career (even to my prom)! The delayed purchase was due to the unwavering commitment my parents had verbally shared with me many times: defined funding and cash financed. They had committed a certain amount of cash toward my first car with the option of purchasing a more expensive car if I chose to contribute money from my personal savings account. It took time, but we did it – purchasing a car with the combined funds for the budget we had outlined. This purchase became the pivotal moment in defining money boundaries in our relationship – boundaries that are essential with the trending dependence of Gen Z.
Recent studies show that almost 50% of Gen Z members considered moving back in with their parents during the COVID-19 pandemic, with 20% indicating they moved in and continue living with their parents. Whether your child is living at home or on their own, the shift from total reliance to independence does not happen without intentionality. Remember, our goal is to demonstrate and verbalize our value system with our children – including financial boundaries. Below are a few financial recommendations while navigating this season with adult children in their 20s.
