In a previous post, we discussed ways grandparents can support family members financially without compromising their tight income in retirement. Now we’d like to address pre-retirement parents who support their adult (post-college) children. A study by Merrill Lynch found that these parents on average gave $6,800 per year in financial support to their post-college children.
Let’s say these parents are 50 years old and want to retire at 65. If they work on financial education and independence with their children instead of just giving them money, they could end up with $102,000 just in savings, per child, not accounting for market gains or interest.
Especially for families with multiple children, this can add up. Mentor Capital can help you with tips on financial education for the whole family.