Baby Boomers U. S. (The Blog) |
| Helping your Student Loan-Burdened Children Posted: 12 Aug 2012 04:02 AM PDT
The real BBUS post can be found here… Helping your Student Loan-Burdened Children by Joe Hauckes © Baby Boomers U. S. (The Blog) . This is a Guest Post by Lauren Bailey. If you would like to Guest Post for Baby Boomers US, check out our Guest Post for Us page. Perhaps for the first time in recent history, adult children are more financially burdened than their parents. While most adult children will end up supporting their parents in one or another, many of those who graduated from college in the 1990s and 2000s have more debt than they know what do with. These “Millenials,” as members of this generation are called, will put off marriage, having children, and buying a house for years longer than previous generations, mostly because of heavy loads of student debt. If your kids fall into this category, it’s certainly understandable that you would want to help them in whatever way you can. But sometimes “help” can be destructive to all parties involved, so be sure that you help them the right way. Here are tips:
Whatever you do, don’t sacrifice the money you’ve put away for retirement when helping your children. Of course, to some this may seem cold-hearted, but really you will only burden them later if your retirement money runs out. If you have extra savings to help your children, then of course, consider it. But don’t let your kids touch your retirement nest egg. There are many different ways you can help your debt-saddled, perhaps underemployed children without lending them money. For example, let them live in your home until they can get back on their own two feet. If they have young children, volunteer to take care of the tikes instead of having your children waste money on daycare. Since you are likely way more financially savvy than they are, help your children set up a reasonably monthly budget. Of course, if you can afford to help your children monetarily without sacrificing your own future, by all means do. Many adult children find it easier to borrow money from family to pay back loans, just so they don’t have to tackle the finances-crushing interest rates of mostly private student loans. If you do lend your children a considerable sum of money, however, be sure that you set up specific terms for repayment, whether that entails a larger payback at the end of the year, or a specific monthly payment. Either way, make sure that your plan is reasonably for both you and your children. While it’s certainly unfortunate that young adults of today are perhaps the worst hit by the economic recession, especially since they are just starting their careers, now is the time for families to come together and help each other out. Just make sure that you’re help doesn’t become a burden to you. Good luck! About the Author: Lauren Bailey is a freelance blogger who loves writing about education, new technology, lifestyle and health. As an education writer, she works to research and provide information for those choosing an online college and welcomes comments and questions via email at blauren 99 @gmail.com. You may also want to join the Baby Boomers US Forum for conversations by Baby Boomers about topics important to Baby Boomers! 
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