Information collected from a Fidelity survey reveals millennials from the ages of 25 and 35 are relying on financial support from their parents. They are helping their adult children pay for phone service, clothing, entertainment, mortgage/rent, utilities, and groceries. Capital Strategist, Sam Tabar shares this information in an article he authored on Huffington Post, in October 2016. Approximately 47 percent of adult children stated in the survey they received help from their parents to cover living expenses. Tabar discusses on Twitter as well when it’s time for parents to stop the support when their future financial stability is being jeopardized.
According to Sam, the Federal Reserve reported 50 percent of all Americans have savings with less than $400 in their accounts. Of the millennials surveyed, the average amount of savings is $9,100, which exceeds the national average savings total significantly. The adult children who participated in the survey said they are financially planning for future retirement. Half of them stated they have retirement savings accounts and investment accounts. Such financial support provided to millennials is helpful for them, but it can cause financial distress on the parents.
Sam Tabar suggests parents consider the effect on their personal and future financial stability while helping their adult children prosper and save at the same time. If they are financially stable and have no anxieties pertaining to helping their adult children, there is nothing to be concerned about. Tabar tells parents who are harming their future retirement and savings to reconsider offerings and have a discussion with their children. Sam’s knowledge in financial planning comes from his extensive experience in SEC compliance and the investment industry as a New York City attorney.
Immediately after completing law school at Columbia, Tabar joined a NY law firm. From 2004 through 2013, he worked for SPARX Group/PMA Investment Advisors, Bank of America, Adanac, and Schulte Roth & Zabel as indicated by Bloomberg. He continues to practice law and presently serves as Chief Operating Officer at Full Cycle Energy, announced here on PRNewswire. As a capital strategist, Tabar have concerns for parents who provide financial support to their children while jeopardizing their financial support. He suggests parents should discuss the differences between needs and extravagance to millennials.