Helping Your Kids in Retirement: How Much is Appropriate?

Retired persons in 2023 probably usually to two generations. They might come from the Silent Generation or the Baby Boomer Generation. These individuals usually have ages in the 60s, 70s, 80s, and 90s.

Many individuals this age have worked for most of their lives, and now they are enjoying retirement. Some have money put away, and they’re doing fine financially. Others might not have as much. They are on a fixed income, but they’re doing okay.

If you have kids, though, you might wonder whether you should still support them financially. We’ll talk about that a little bit right now.

​Should You Offer Advice or Money?

As someone from an older generation, you can offer your grownup children your wisdom. You might also offer them money. But which has more value?

You can give your grownup children suggestions whenever they ask for them, on virtually any topic. You might tell them that paid immigration consultants offer superior services over free ones or that they should never let their car’s gas tank drop below a quarter full. Your kids might want your money much more than they want your advice, though.   

You probably have kids in the Generation X or Millennial age groups. They might be in their 50s, 40s, or 30s right now. They probably have their own kids, vehicles, homes, and all the struggles and challenges you did at that age.

Money helps with many such challenges. An extra cash infusion lets them get their teenage child a used car, so they can drive themselves around. They might use the money you give them for some much-needed home repairs. Do you owe your child any financial obligation, though?

​Retired Individuals Approach This Situation Differently

Various retired persons regard their obligations concerning their children differently. You might feel like after your child turns eighteen, you shouldn’t give them any more money. Maybe you never had parental help following your eighteenth birthday or even before that.

You may feel that your kids should stand on their own two feet, make their own money, and support their own families. You may think this builds character.

On the other hand, you might feel that if you have extra money in retirement, you should throw your kids a few bucks now and then. You probably have grandchildren now as well, and maybe you like spoiling them.

Which Approach Will You Choose?

​People have different opinions, and what one retired person thinks might not fit another retired person’s mindset at all. Many older individuals act depending on how much money they have.

If you have plenty of money, and you’re not left wanting in retirement, you might help your adult children for that reason. It may bring you joy helping them, especially if you see them struggling. Some grown adults work one job, while others work two or even three. They might still struggle with bills, especially if their jobs do not pay them much.

Your grownup children might also live in expensive cities like Los Angeles, New York, or Chicago. There, even working fifty or sixty-hour weeks sometimes isn’t enough. If your adult children have their own kids and other financial obligations, building up any savings rarely becomes possible.

​It’s Each Retired Person’s Individual Choice

​No one can tell you how to use your money. If you've got a spouse or partner, you can talk it over with them and make a mutually-acceptable decision. If you have some extra cash, though, you might consider using it for travel or for your own hobbies. You may feel it’s your money and you earned it. You can use it however you like.

If you see your adult kids struggling, though, guilt may drive your actions. You may feel you must help them at least a little bit financially sometimes, as they have inflation and stagnant wages holding them back.

You might have a situation where you and your adult kids can help each other. They might have a spare room where you can live, and you have money you can contribute to keep the household running.

If you’re getting older and don’t like retirement communities or assisted living, this situation might appeal. You can use your money and help the younger generations. They, in turn, can help you as you age.

Think about how to use your money in retirement. If you have more than enough, and you have needy kids, your kindness might help them immeasurably.