How Parents Know If It’s Time to Cut the Financial Cord from Their Kids

Advisor Written by: Dave Firestone July 18, 2019

From the moment the woman gets pregnant to raising the child, a parent will always be a parent. Children at a young age are dependent on their parents for food, shelter, and clothing. Even if kids already had their 18^th birthday, parents will still be there, willing to do more for their child.

No matter how much we love our kids, there is still a time when we have to cut financial ties with them. This doesn’t mean we don’t love them enough, but quite the opposite. By cutting their budget and monetary allowance, we are enabling them to grow on their own. It is basically one of the best ways to teach them independency. But how can parents know when to cut the ties without feeling guilty? Here are some tips that will help our parent readers.

When they have work

Once your child finds a job, the parent financial support should end.

Kids with a steady job mean that there is also a steady sum of money coming in. By the time they get their first paycheck, parents should already give them the talk on financial independence. But aren’t parents supposed to still support the child so they can save up? No. There is a tendency that the child will lax on his/her budget knowing that there is still money to be given. Cutting them completely will surely give them a hard-time budgeting but they will eventually learn. This also means that the credit cards that are linked to the parent’s account should also be closed. Kids should start early so they can learn the importance of value the moment they work hard for it.

Expensive housing

When children ask for help in buying their own place, it means they still can’t afford it.

If the kids are looking for a housing plan and are asking for their parent’s help, then this is definitely a sign that they can’t afford it. It makes no sense when our kids are trying to buy their personal space when they still can’t afford it. The thing is, there is also a huge chance when they’d continually ask help from their house’s amenities, which can include the monthly bills. There are many ways to get a housing plan without asking from the parents. There are many banks that offer plans and promos. If a child wants it bad enough, then he or she should have the motivation to work hard for it to make it all happen.

Sense of entitlement

This is a common problem with kids who are aware that their parents are rich. They develop a sense of entitlement that even if they fail, there is always a trust fund they can fall back on. If this thinking will stop the child from growing and learning, then it’s time for parents to rethink. The money should not be the cause of staunching their growth. Instead, it should serve as a motivation to do well and to earn that money that’s been given to them.

Billionaires like Bill Gates and Chef Gordon Ramsay are the example of this. They will not give their kids a single share of the fortune they made. This is to teach them hard work and perseverance. They believe that getting rid of the security blanket will make them thrive more for success. Easy money will never build character, that’s why they would rather not give it to them.

Age does matter

When it comes to financial support for a child, age does matter.

Parents should see the difference from a kid to an adult. Most of the time, parents still consider their children as dependents when they are still single. Which means, for most parents seeing their child build a family on their own is a concrete sign that they should stop giving financial support. But what about those who prefer being single at the age of 35? Does this mean that parents should still shoulder part of their expenses? No. Parents should know that age is the biggest factor in considering when to cut the ties and not the relationship status.

Maybe the reason why the child can form a strong relationship is that they are too dependent on their parents. Kids should not guilt-trip their parents into submitting to their demands. Parents, on the other hand, should impose a clear line between parenting and become a limitless ATM machine.