In this week’s episode Bobbi answers the question she is getting asked the most after the release of her new book “Launching Financial Grownups”
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Full Transcript:
Hi grownups!
I hope everyone is enjoying the spring and spending lots of time with their friends and family- hopefully staying healthy and having time with our loved ones in person.
I’ve been enjoying getting out as well- and getting to share my new book: Launching Financial Grownups. Live Your Richest Life by Helping Your (Almost) Adult Kids be Everyday Money Smart. In fact when this episode is released I will be in Los Angeles both for some speaking engagements and also getting to spend time with friends I have not seen since the before times. I’m so excited to get back out there in person.
It’s been about a month since Launching Financial Grownups was released and it’s been so interesting seeing what people react to- a lot of people have related to my specific tips about teaching the next generation about money and also enjoyed the not always conventional advice from the experts I was able to interview for the book including Tori Dunlap from her first 100k and financial therapist Dr. Brad Klontz.
But there is one question that I keep getting when people learn about the book. And I have been surprised because I thought it was something people were more aware of - it wasn’t something I came up with myself and it wasn’t something that I thought would surprise anyone or really be that interesting. In fact it was kind of a last minute decision to expand the section in the book that talks about it.
The question everyone has been asking is why do parents these days have such a harder time than their parents did- is there something different going on or are we just bad at this parenting thing even though we seem to be trying so much harder?
The last part of that question is the one that really gets everyone frustrated- should be we BETTER at parenting since we are paying so much more attention to it. I mean when we were coming of age, our parents didn’t pay nearly as much attention to us. They certainly didn’t spend as much money on us- and once we were out of school whether it was high school or college they just kind of let us figure it out.
We’re working so hard to set our kids up for success. Many of us prioritize education and frankly almost any kid related expense over almost anything that seems indulgent or even wanted for us. And yet, their childhood seems to be endless.
It’s even become a thing on social media. So many parents of early 20 something joke about the fact that their almost adult kids just don’t seem to leave the nest- financially. And the next generation is not shy about embracing their endless adolescence- joking that they are “adulting” as if doing something adult like in their 20’s is a game and they aren’t actually adults.
But this didn’t just happen.
Parents are financially tied to their kids for longer for some very specific reasons. Here are some of them.
First: The Affordable Care Act- aka Obamacare allows our offspring to be on our health insurance until age 26. So that often creates a financial tie in the family until age 26- boom- how do you cut off your kid when you are paying their health insurance. That discussion never happened when anyone who is a parent of a 20 something was growing up .
Ok you’re saying- just limit it at that. But there are other things parents often pay for that also literally did not exist when we were growing up. Let’s talk about the cell phone bill. If it costs $100 for your kid to have their own bill- and your bill doesn’t go up much- maybe $25 to keep them on- you probably are going to do the math and keep them on there at least until they are .. say 26.. when that health insurance tie happens. But time slides- let’s just way a recent bit political investigation turned up a high ranking former presidential aide that was still on his parents phone bill. Google it.
And who among us is going to take their kid off their Netflix and other streaming services if it literally costs nothing to keep them on.
All of this is not bad- but it is something that keeps their finances tied to ours, and better for it.
We’re closer to our kids and frankly tend to be more involved in their lives thanks to technology. When we were dropped off at college we could use a payphone to call home.. at some point. If we had a question about a life skill- we tended to ask around or figure it out. Now the answer is just a text away. Also a quick text away- money. As in, they can get money to us immediately. No waiting for a check in the mail. Which is a good thing because most young people haven’t even really dealt with physical checks.
The point being- we’re there so solve their problems- instantly - and there’s a lot of good with that- but it also undermines their ability to develop their own solutions- financial or otherwise.
And they need us more than ever because corporate America - for all it’s talk of upgrading the workplace - is also relying more on contract workers and many of our kids spend their first years in the gig economy- so they don’t have that structure that helped many of us feel like adults. They don’t have income reliability so how can they manage to have their own home- rented or owned. Ditto that for really being able to save up to live somewhere NOT their parents home.
Which goes a long way to explain why so many of this generation of emerging adults live at home- which used to have a stigma. But will trillions in student debt and minimal wage gains relative to inflation- who can blame them.
It’s a lot falling on our young adults- and in turn on us.
So I’m glad we are all gaining a new appreciation of the challenges facing our young adult kids- and so we can understand how we can help them embrace being adults and move past the gamification of adulting.
If this makes sense to you- I know you will really get a lot out of Launching Financial Grownups and I hope you will check it out.
In the meantime I’m also giving some tips and having a little fun at my own expense over on Tik Tok- I keep it simple - the handle is just my name.. as it is on all social media except instagram which is bobbirebell1 - DM me or leave a comment on any of the social platforms with your ideas on how to tackle these challenges- whether you are a young adult or a parent- or if you just care about a young adult in your life.
Also a reminder- if you are celebrating a big milestone this spring- graduation, mothers day, fathers day, an engagement or a big birthday- great gifts are available at grownupgear.com
Thanks so much as always for joining me as we all learn to be financial grownups.