Using the Bank of Mom and Dad

Using the Bank of Mom and Dad

When I was in high school, I worked at a bagel restaurant to save up for university, travelling and to have some spending money.

But my parents remained a big help until I got my first real job and moved out of my family home. That marked the beginning of adulthood and I wanted to stand on my own feet, financially and otherwise.

Today, times must have changed because you often hear about adults living with their parents into their 30s. In one recent magazine article I read, the author boasted about how living with his parents gave him plenty of spending money to travel and enjoy his life, even though he had finished school and had a career.

Even if you aren't living with your parents and saving up, parents often loan their kids money as a down payment for their first house, to start a business or to pay off their university loans. They continue lending them money and supporting them even after their children have children of their own.

Relying on your parents for a loan is great for kids who are able to benefit from their generosity. Meanwhile, kids whose parents aren't in the position to help or don't believe in helping financially, have to find other means of securing finances.

The truth is, if I had the means, I would loan money to my kids if they need it. I would offer it up and give it to them as a gift to help them get a head start in life. It's our job as parents to help them succeed, and if that means giving them money for a house then that's what I'd do. We should always take care of our kids, right?

While I might be embarrassed to ask my parents for financial assistance, I know they wouldn't hesitate to help me in the same way.

Apps like Allowance + Bank of Mom and Dad even allow parents to track how much money they've given to their children and track how the money is being used. It's also a good way to teach them financial literacy. It's also an indication of how many parents actually give their kids funds.

At the same time, what does this make us? Are we a generation that expects handouts? Shouldn't we strive to be independent from our parents and learn to thrive without their safety net? Isn't there something to be said for succeeding without any help? Will my kids ever learn independence if I'm always giving them money and making life easy for them? Isn't there something to be said for letting them struggle? Won't this teach them to work hard and appreciate everything they've earned?

I'd love to hear your take on the issue. Have your parents loaned you money? Would you loan money to your kids?

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