In the Media - Parents are covering $1,474 monthly for adult kids – what one CFP says to watch out for (CNBC)
- Holzberg Wealth Management
- 23 hours ago
- 3 min read
Our very own Marcus Holzberg, CFP® was recently featured in an article from CNBC Select about how parents can support their adult children without compromising their own financial well-being.
More parents than ever are stepping in to help their adult children manage rising living costs, student loan payments, and everyday expenses. A recent study from Savings.com found that nearly half of parents are providing ongoing financial support, contributing an average of $1,474 per month toward groceries, cell phone bills, and even vacations. It’s a meaningful expression of love – but it can also put strain on a family’s long-term financial stability if not handled with clarity and intention.
We often meet with parents who want to help their grown children without derailing their own retirement planning or long-term financial goals. In the CNBC article, Marcus shares the most important thing parents should watch out for: a lack of direction. Support tends to start with good intentions, but without clear boundaries or a plan, it can quickly become open-ended. Before emotions enter the picture, it is essential to understand where your child truly needs help – whether that is short-term assistance with rent or a temporary transition back home – and outline what the support will look like.
Setting expectations early helps avoid misunderstandings later. That might mean agreeing to contribute to certain expenses for a set period of time or treating the support as a loan with structured repayment. According to the same study, 77% of parents who give financial help attach conditions, which underscores how common and important clear terms can be.
At the same time, parents should avoid unintentionally restricting their child's financial autonomy. The goal of any support should be to encourage financial independence, not create long-term reliance. If you are covering some of your child’s expenses, consider using the experience as a teaching opportunity. Walk through how you manage your own bills, budgeting system, or mobile banking apps. If you are drawing from investments, show them how you think about investment strategy, taxes, and cash flow. As Marcus shares in the article:
“If you, as the parent, are paying their bills, make sure you’re also teaching them how to manage those bills.. It’s okay to provide a safety net – but just make sure that it still allows for room for growth.”
For parents looking for tools to make support more structured, joint or linked bank accounts can offer transparency without being overly controlling. Adding an adult child as an authorized user on a credit card without giving them spending access can help them start building credit from your positive payment history. And for families focused on long-term learning, conversations about different investment accounts, tax treatment, and saving habits can equip a young adult with financial skills that far outlast the money itself.
Every family’s situation is unique, and navigating financial support can feel complex. Working with a financial advisor can help ensure that generosity toward your children does not jeopardize your own financial security. With the right planning, structure, and communication, parents can support their adult children in a way that strengthens, not strains, the family’s overall financial well-being.
Looking for expert financial planning tips on how to help your adult children responsibly? Check out the article here in CNBC Select featuring Marcus Holzberg, CFP®.
If you have questions about your financial plan and working with a financial advisor, check us out. You can schedule a complimentary, no-obligation call with us here!
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Holzberg Wealth Management is a family-owned and operated financial planning and investment management firm based in Marin County, CA. As your financial advisors, we serve you as a fiduciary and are fee-only, so we never receive commissions of any kind. We help individuals and families like you in the greater San Francisco Bay Area and virtually nationwide with the financial decision-making process to organize, grow, and protect your assets.
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