Financial assistance isn't helping your children

Money expert Michelle Hutchinson is encouraging parents to help their children learn how to be financially independent.
Money expert Michelle Hutchinson is encouraging parents to help their children learn how to be financially independent. innovatedcaptures

FINDER.COM.AU money expert Michelle Hutchinson is worried that adult children who receive financial aid from their parents will struggle to learn the value of money.

A new study has revealed that young adults are likely to accept financial help from their parents.

More than 1700 Australians participated in the study and found 86 per cent of parents provided assistance to their adult children.

Lending money, paying bills, free rent and significant purchases like holidays were the popular ways they contributed financially.

Ms Hutchinson said that although parents wanted to help their children get ahead in life, it could be detrimental to their child's financial well-being.

"It's expensive to live in Australia, but we need to teach our kids the value of living within their means otherwise they won't have a sustainable future," Ms Hutchinson said.

"Here is where the problem lies. When quizzed on why their parents help them out, more than half said their parents offer.

"Around 15 per cent admit it's because they struggle to manage their money while nine per cent admit it's because they're in debt.

"It's important for parents to stop feeling depended on. They need to focus on their futures too.

"Parents should ask themselves if the financial assistance will empower their child or enable them," she said.

Ms Hutchinson suggests that parents outline the limits of their support to make sure their children are working hard to be self-sufficient.

She also suggests giving out loans instead of cash as a gift.

"Giving adult children wads of cash, paying their bills or letting them live rent-free is creating a 'sponge society' where people may not learn how to live within their means, understand the value of money, budgeting and saving," she said.

Topics:  aid children costbusters financial toowoomba

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Snitz sizzles to win qualifier with ease

IN FULL FLIGHT: Brisbane jockey Robbie Fradd streaks clear to win the $150,000 NRRA Country Championships qualifier on board Snitz, trained by Matt Dunn, at Clarence River Jockey Club.

SHORT priced favourite sends everybody home happy.

Ballina Players brings popular military drama to the stage

ON STAGE: John Rado as Colonel Nathan Jessep and Dylan Wheeler as Lt Daniel Kaffee in the Ballina Players production of A Few Good Men.

Tickets are on sale for their new production of A Few Good Men

Triumph of dreams ... it all started with one bike

A CLASSIC: Meerschaum Vale's Col McAndrew with his Triumph 1956 Speed Twin which he will show at the Northern Rivers Classic Motorcycle Club's Show and Shine at Alstonville Plaza on March 18.

Col has six classic bikes; 100 expected at show

Local Partners