Guiding Children to Financial Independence After College

Parents must teach their children financial independence to ensure future success and avoid dependency.

### Guiding Children to Financial Independence After College Graduation
* 👨‍🎓  Jeff's inquiry about supporting children transitioning to adulthood post-college highlights the **importance of evaluating personal and familial financial situations** before offering assistance.
* 💰  If parents have been diligent in their savings and are on track for **financial independence**, helping children with expenses like health insurance or phone bills can be beneficial.
* ⚖️  However, if such support jeopardizes the parents' **financial stability** or hinders the children's ability to become **self-sufficient**, it may be wise to **reconsider this assistance**.
* 📊  Utilizing these opportunities as teachable moments is crucial; parents should encourage their children to **manage their finances responsibly** while providing some support.
* 📈  For instance, parents can maintain their child's health insurance on a family plan while teaching them the **value of saving** by showing how much they **save through this arrangement**.
* 💡  Instilling financial discipline and the importance of **deferred gratification** is essential, as these are foundational elements for **building wealth and achieving long-term success**.
* 📚  Studies, such as those in "Millionaire Next Door," suggest that financially educated children tend to **mirror their parents' success**, reinforcing the idea that teaching good money habits is **beneficial for both parties**.
* 🔑  Ultimately, fostering financial independence in children not only **enhances their future prospects** but also contributes to the parents' **overall financial well-being**.

[Music] all right. The next question is from Jeff. Jeff, Jeff. He says, How much do you help children transition to adulthood when they graduate college? Do you help with insurance, phone payments, car down payment, etc.? My sons will graduate debt-free with STEM degrees for some context, which is good for them, but what do you think? What advice or thoughts do you have for Jeff? You know, Jeff, this is actually a wonderful question. So good that we're about to create some content around this, like, What's the right way to do this, and what's the wrong way to do this? To give you sort of like the cliff notes idea on this, I think there are some questions you have to answer before you can say how much do you help your children because it depends a little bit on your situation, then it depends a little bit on their situation. If you are in the situation to where you've been saving and you're moving towards financial independence, and you've done

the things that you are supposed to be doing, and it's looking like you're going to be able to retire. You're going to be able to have the kind of life that you've been saving for. If you want to make a decision like leaving your child on health insurance until age 26, or allowing them to stay on the cell phone bill, or helping them out in other ways, there's nothing wrong with that. But if you're trying to help your child and it's only serving to hurt your financial situation, your financial circumstance, you might want to rethink that. Or, and this is even worse, if what you're doing to help your child is actually inhibiting them from developing the skills necessary to be able to grow and flourish on their own, even if you can do it, you may want to second guess, Should I be doing this? Well, I would. Those things CU look, it would be CU. We deal with a lot of our young financial advisers stay on their parents' health insurance. It's not uncommon just with the way cellular

Services contracts are structured that the family plans are very effective, so it's always the financial mutant to me is like don't throw those out. But the big butt is that I would use it as a teachable moment. You guys know I'm very philosophical, is that you got to teach your children to be good with money. And um, and it's this is a perfect opportunity to where you say hey look, we're going to keep you on our health insurance CU. It's probably, you know, it's more cost-effective 'cause I'm already on the family plan and you have a younger sibling, so it's not going to cost you anything. You're not going to do any participation at work, your mobile phone, same thing. But let's calculate, let's actually write down how much these two things just saved you. Now you show me that in your brand new job. I mean, are you funding your Roth IRA? Love it. I mean 'cause this is, this is not too different than when my daughter was 15 and I

started giving her a dollar for dooll match when she started her first job to try to prime the pump of good behavior and saving for the future 'cause what you don't want to do is not teach your children to be good with money and then they they kind of just you you become a crutch you that's the worst thing that can happen is you don't have those conversations they don't learn how to become independent financially and then their best life was actually their childhood that's sad to me and that's something I would encourage every one of you guys especially you Financial mutants that are doing a great job make sure you're adding moments of scarcity or at least education in your parents I mean your kids life so that they understand the value of what it is to make good financial decisions what the struggle is to even get to success and wealth and you know and how little goes a long way don't forget the three ingredients to wealth whereas that discipline and deferred gratification is

ingredient number one you got to that that's going to create the margin or the money. ingredient number two that if you give them enough time to let those assets grow. that's the super secret sawu that they're going to have plenty of cuz their kids are young adults. Make sure that they're putting and executing all three of those key elements and that way you don't have regrets because and and by the way if you go read books like Millionaire Next Door you know one of the key indicators for success for millionaires is their adult children are actually somewhat successful too and don't require this economic outpatient care for years on years. So you're actually doing yourself a favor and your own success if you teach your children to be good with with money.

How Much Do You Financially Help Children Transition to Adulthood?

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The extent of help provided to children transitioning to adulthood after college graduation depends on the parent's financial situation and the child's needs.

It's acceptable to offer support, such as health insurance or phone payments, if it doesn't hinder the parent's financial independence.

However, if the assistance prevents the child from developing necessary life skills, it may be worth reconsidering the level of support.

Teaching Financial Responsibility to Children

Family plans for services are effective and cost-saving, making them a valuable resource.

Using this opportunity to teach children about money management is important.

Encouraging them to save and invest, like funding a Roth IRA, can set them up for financial success in the future.

The speaker started giving their child a dollar for a "dooll match" to encourage good behavior and saving for the future.

They emphasize the importance of teaching children to be financially independent and having conversations about money.

The speaker encourages parents to add moments of scarcity and education in their children's lives to help them understand the value of making good financial decisions.

Teaching young adults to manage money is crucial for their future success.

Encouraging them to let their assets grow over time can lead to financial stability.

Instilling good financial habits in children can also contribute to the parent's long-term success and reduce the need for ongoing financial support.