The Bank of Mom and Dad – Episode 163

Summary:

Best selling author Kim Butler and co-host No B.S. Money Guy Todd Strobel talk about a recent article from AARP called The Bank of Mom and Dad. Together they discuss the different questions and scenarios when handling finances with adult children.

Tune in to find out how to take control of your finances today. Do you have a question you would like answered on the show? Please send it to us at welcome@ProsperityThinkers.com and we may answer it in an upcoming episode.

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AARP’s article from January 2017 called The Bank of Mom and Dad

Show Notes:

00:00 Introduction

00:29 Today’s topic: AARP’s article from January 2017 called The Bank of Mom and Dad

01:47 Question #1 – Will this investment add stability and security to my child’s life or is it simply a good to have purchase or investment?

05:22 When helping children in their 30’s and 40’s it may be causing their children problems

05:47 Question #2 – Is this a short-term or one time cash need, or is it something that could drag on for years?

06:26 Question #3 – Is there risk in the investment beyond the cash outlay, such as financial liability on a contract or damage to your credit?

8:04 Question #4 – Can you lend or give this money without fear of damaging your relationship with your child or will it cause tensions or resentments for the people involved?

12:58 The AARP scenarios

13:32 Scenario #1 – Dead Car

14:41 Scenario #2 – Fairy Tale Wedding

16:37 Scenario #3 – Apartment Lease

18:03 Scenario #4 – Home Down Payment

21:35 Scenario #5 – Divorce Bailout

23:39 Scenario #6 – Business Loans

25:05 Scenario #7 – Graduate School