The post crisis era is seeing families from the middle and rich income group worried about teaching the next generation about the value of work. It has not escaped those with low income either. All are seeing the hitherto thought to be strange scenario of adult children returning to parental nests because they cannot find jobs.

Brad Klontz deals with financial psychology and has co-authored Mind over Money. He opines that parents should from the beginning lay down ground rules that children have to pay rent. Financial helping will ultimately harm the children. The latter are conditioned to think that money is always there and there will never be a lack of them being not taken cared of. Teach about real estate market and foreclosure, too.

By imposing a charge on adult children for staying under the same roof they are being compelled to be more conscious about the expenses about which many of them are ignorant. The child has to be helped to understand the meaning of independence said Joline Godfrey of Independent Means of Santa Barbara. The firm deals with financial education. She said, “You can’t expect kids to go out in the world and be self-sufficient if they don’t know what a utility bill is.”

Understandably the parents do not want the children to undergo again the trials and tribulations they themselves underwent while trying to stand on their feet. But giving the children too much will ultimately harm the kids. It is not just about those who are of college going age. Even when they are younger laying down regimented schedules for summer programmes can rob them of the possibility of doing things on their own and succeeding in it said Debbie Cox of J.P. Morgan Bank of Dallas.

Simultaneous with this, is the obsession of parents with formal education. This leads to the neglecting of social as well as financial education. Summer jobs can socially educate the children and it is much better than idling with friends. Cox stressed, “They need to learn what it’s like to get up every morning and get to that job and help someone with something.”

Another mistake that parents do is to solve all the problems of their children. Todd M. Morgan of Bel Air Investment Advisors of Los Angeles said most of the successful executives stepped into the lives of the children and fixed up everything – just as they would do in the boardroom!

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