A new study from Australia shows that in that country, 24% of Generation Y respondents said they have never had to budget or save, and 35% have had to do so only when they wanted to buy a specific item or go on a holiday.
The reason? Until now, economic times have been consistently good in their lifetimes, and they have always been propped up by Mom and Dad. Unfortunately, the survey shows that 80% of baby boomer parents wish their kids would learn better budgeting and saving skills. That’s because 71% of boomer parents are worried about their own financial future and the potential of delayed retirement since their finances have taken a hit in the economic crisis. Sadly, almost half of the boomer parents surveyed said they feel guilty about having to give less financial support to their adult kids.
In our book, we advise that you should never compromise your own financial health to support your adult children, unless they are in crisis. Delaying your own retirement to help fund your child’s living expenses or schooling sets a bad example, as they will only become more dependent on you, rather than learning to face and plan for financial challenges on their own.
You can read the whole article here.