4 Signs You’ve Neglected Your Grown Children’s Financial Education and What To Do About It

Commitment to Our Readers

GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Bạn đang xem: 4 Signs You’ve Neglected Your Grown Children’s Financial Education and What To Do About It

Trusted by
Millions of Readers

If your children are grown but you’re still their favorite ATM, you probably have noticed something went wrong.

Kids who didn’t have access to financial literacy while growing up will often lack essential tools for becoming financially independent as adults. This can look like constantly racking up debt, living month to month without a budget or spending beyond their means.

Thankfully, it’s not too late to do something about it.

Below are some signs you’ve neglected your grown children’s financial education and some steps to help you steer things right.

Lack of Basic Financial Education

According to David Milo, owner of Independent Lending, it’s obvious there is a gap if adult children are not aware of budgeting, saving and how credit functions.

Xem thêm : Summit Financial Onboarding $550 Million Midway Wealth Partners Team

“For example, it’s possible they disregard their accounts and constantly overdraft or take loans with a high interest rate not realizing the consequences it will bring in the future,” Milo said.

Financial Dependency

Another sign, according to Milo, is if there is a trend of relying on parents for escape plans. Be it getting rent, having car repairs done or even making credit card payments.

All of this, he explained, makes it apparent that a child is not financially independent.

Hesitant and Shy With Finances

If your child is hesitant or shy with some areas of finances and money, that can be another key sign they’re lacking financial education.

“Some adult children tend to avoid talking about money matters, as they are not educated on that topic,” Milo said. “Or they simply avoid that topic, as they feel embarrassed or fear managing finances.”

Overspending

According to Milo, another key sign is if a person consumes too much of nonessentials, such as expensive brands, especially if they’re not prioritizing other areas of their finances.

Though if you find your child doing this, know they’re not alone. According to a 2024 Clever Real Estate survey, 55% of Americans admit they spend recklessly.

How Parents Can Help Adult Kids Catch Up

While it may feel like it’s too late to change your children’s behaviors and financial knowledge, it isn’t. There are things you can do now to help get them on the right track.

Start the Discussion as Soon as Possible

According to Milo, there is no end to the age where money concepts can’t be understood.

“If one is worried that too much time has passed and critical concepts of finance are to be taught, then a good approach would be to first explore each topic in detail and explain each of their teachings,” he said.

Promote Tools for Financial Literacy

Promoting tools for financial literacy is a big one, according to Milo. You should advise books, podcasts or classes designed for younger adults.

“Good starting points include ‘The Simple Path to Wealth’ by JL Collins or applications like Mint for budgeting,” he said.

Provide Professional Help

Professional help is also a good option.

“Where suitable, refer them to a professional who can help tailor their advice according to their specific case,” Milo said. “This reinforces the significance of planning and can ease the burden of the parent-child relationship.”