Is it time for the bank of Mom & Dad to shut down?

Supporting our kids is something we should do, but there needs to be a time when the Bank of Mom & Dad reduces its hours or shuts down completely. If your kids are well into their careers, it may be time for some tough financial love. Hopefully, you have done your job by teaching them how to budget, save, and spend wisely. It’s nice to be in a position to help, but you don’t want to be a lifelong ATM. If your adult children are still asking you for money, here are a few questions you should feel free to ask first:
Ask what it’s for. No matter the amount, you have a right to ask what the “loan” will be used for.
Set repayment terms. I put the word loan in quotes above due to the fact that often “loans” become gifts. You are not doing them or yourself any favors by not setting terms.
Feel free to say no. You may not be in a position to actually make the loan. If you are not on board as to the use of funds, or you will just help feeding a pipe dream, say no.

We owe it to our kids to teach them fiscal responsibility – do that and you will be able to gift them a lifetime of independence.

disclosures:http://www.hechteffect.net/?page_id=31