Emptying Nest Eggs, Not the Nests
The New York Times, July 14th, 2007
Their son, Michael, 23, just moved back home and is looking for a job. Their
daughter, Alison, 20, will start graduate school at Columbia University next month, and they are paying her rent.
In contrast to previous generations, when young people generally took control
of their finances — and their lives — after graduating from college, more
parents are supporting their offspring well into adulthood.
In part, it is a matter of economic necessity. College graduates face
enormous loan debt. Their entry-level salaries do not come close to covering
high housing costs in many parts of the country. And their parents, fearing the
worst, agree to pitch in. Then there is the emotional attachment.
“It’s a gift we can give them now,” said Mrs. Riccardi of Hillsdale, N.J. “If
we can bite the bullet now, it will help them later.”
This gift is not a couple of $20 bills tucked into a holiday or birthday
card. It is more like an allowance that extends past adolescence, often into the
30s. It pays for housing, bills and other expenses. In fact, research shows that
financial strings to the parents’ wallets are never really severed.
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