Still Supporting Your Adult Children? Maybe Not A Great Idea.
b"With\\xa0Peter Dunn, columnist for USA Today and the Indy Star, Author of ten books, Comedian and Financial Expert, and Host of Pete The Planner Radio Show
The dual careers of comedian and financial advisor may seem an unusual mix, but not to Peter Dunn. The USA Today columnist, author of ten books, and host of the popular radio show, Pete the Planner, combines the two in a surprising way.
Pete recently ran a two-part series on his program about adult children still being financially supported from home and the parents who are writing the checks. This unhealthy partnership was created by a generation of parents who never raised a child who was allowed to fail or come in second and is then perpetuated by those same children who become adults who can\\u2019t stand on their own two financial feet.
Often there is a failure on the part of the parents to steer their children into a field of study that offers good potential for future employment and instead letting them follow their dreams into a sector rife with job insecurity, and, on top of this, allowing them to take on a load of student loan debt they\\u2019ll be shackled with for decades to come.
So how do you stop the enabling and cut through this seemingly impassable predicament? Pete advises setting a timeline for financial independence, however difficult that might be, and allowing the child to float away on his or her own, by setting a budget and perhaps even changing career goals. A harsh gaze into a future of continued codependency and its inevitable consequences should be the catalyst to set a new pattern in motion, where the result is financial security and health for both parent and child.
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Steve Pomeranz: My next guest is Peter Dunn, also known as Pete the Planner, an award-winning comedian and personal finance expert.\\xa0 He's also a USA Today columnist and the author of ten books. He hosts a popular radio show, the Pete the Planner Show, and is a columnist for the Indie Star.\\xa0 Pete the Planner, Peter Dunn.\\xa0 Welcome to the show, Pete.
Peter Dunn: Thanks for having me, Steve.
Steve Pomeranz: Just tell me really quickly how you found yourself in this field of giving personal financial advice.
Peter Dunn: I used to be a financial planner and investment advisor.\\xa0 I noticed a trend in my clients that they needed more help with dealing with money and less help investing, so I was like, hey, I'm going to start teaching people how to deal with money effectively from a budgeting cash-flow perspective.\\xa0 It worked so well, I ended up selling my investment practice, and now I work closely with financial advisors to fix the behaviors of their clients.
Steve Pomeranz: You wrote an open letter to parents which attracted my attention, which is why I asked you to join me today.\\xa0 The letter was to parents who financially support their adult children, and I found it intriguing and well thought out.\\xa0 It's part of a two-part series.\\xa0 The first part of the series is from the parent's point of view, and the second part of the series is from the adult child's point of view.\\xa0 Take us through that a little bit.
Peter Dunn: It certainly takes two to tango, and when there's a dependency issue between parents and adult children financially, both parties have culpability there.\\xa0 From a parent's perspective, we love our kids so much and we don't want to see them fail or suffer, that we're willing to martyr and sacrifice our money when they are struggling.\\xa0 My assertion in the column, Steve, is that you're martyring the wrong resource.\\xa0 Don't martyr your money, martyr your feelings.\\xa0 Let them fail.\\xa0 Let them figure out that in order for their resources and their bills to match up, they're going to have to fail."