In Response: Parents Should Financially Help Their Adult Kids
Earlier today, an article regarding parents financially assisting their adult kids was published on our website and I have got to say that it got my blood boiling a bit.
This article's point is to say that parents need to teach their kids how to budget and that financially helping offspring will put couples off track for their retirement goals.
Well. Excuse. Me.
According to EliteDaily.com, the cost of everyday living has skyrocketed within the past few decades with typical salaries only inching up year by year.
For example, buying a house today on average would cost $284,000. Back in the 1930's, our elders could get a house for an on average cost of $3,845!
Just to keep the trend going, a loaf of bread costs ten times as much as it did in the 1950's. Prices have also been jacked up for a dozen eggs, a half gallon of milk, and a pound of steak -- aka all pretty regularly purchased items for just about anyone!
And my argument continues -- there are actually calculators to figure out what the value of a dollar and your annual salary would be equivalent to if you were living back in the good old days.
For example, if you compare the value of a dollar in 2017 versus 1930's, our dollar would have the same power as $14.04 back then!
If your annual salary in the 1970's, probably around the same time as when your parents were growing up, $40,000 had the same buying power as $261,025.40. Check out the CPI Inflation Calculator to see for yourself.
Plus don't forget about the exponentially climbing costs of an education and the subsequent loans that follow -- so NO it is not a bad thing to help out your adult kids because they are growing up in a completely different economy than past generations have.
I thank you and Happy 2018.
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