The savvy hygienist: 5 do's and 2 don't's for the Bank of Mom and Dad [VIDEO]

October 12, 2014
Kevin Henry
Issue 10

Will assistance help or hinder your child’s ability to become financially independent? Dr. Doug Carlsen says he knows of dentists with kids in their 50s still living at home or receiving $30,000+ payments.

Will assistance help or hinder your child’s ability to become financially independent? Dr. Doug Carlsen says he knows of dentists with kids in their 50s still living at home or receiving $30,000+ payments.

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Do’s:

Provide a mortgage down payment. This is a good way to jump-start your child to stability. Make sure you don’t make mortgage payments also. That may become a never-ending cycle.

Pay your child’s moving expenses for a better paying job.

Pay for vocational or career training, as long as the time period is within reason and your child doesn’t continually change his or her mind.

Set parameters for payments: 1/3 of parents just give money and don’t know where it goes. Have specific areas you’ll pay, such as internet, cell phone, utilities, or insurance.

Get something in return:
42% of adult children contribute with cleaning or cooking.
75% contribute with money for rent, mortgage, or utilities.
If they are away from home, they can provide website maintenance or social media help for parents.

If your adult children give nothing in return, YOU are the problem!

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Don’ts:

Don’t sacrifice your retirement. Two years is the maximum most parents will feel comfortable working longer.

Don’t forget an exit strategy for your kids. Many adult children have one, yet fail to keep it. Update as needed. Also, consider a taper-off period of funding over a year or two.

Additional reading: The savvy hygienist: How to manage and control personal debt