20 Mar
2011

The “bank of mom and dad” as it is sometimes known pays for everything from school tuition to school clothes, bicycles, and summer camps. In some cases, children draw on the bank of mom and dad long out of their teens, using parent support to start businesses or attend college. While many parents want to do everything they can to help their children, some experts believe that the bank of mom and dad may not be good for kids.

Some experts argue that too much financial support makes children value money less and makes them less likely to stay independent as adults. Some experts also believe that too much simple financial support can mean that children avoid learning about financial responsibility. Other experts, however, claim that in really difficult circumstances, help can offer children a new start.

When parents get asked for money, they need to carefully consider the child asking, the age of the child, and the child’s money attitude. A young child is of course financially dependant on their parents, while an adult child with debt problems may need to make some money changes in order to learn better financial skills.