The LEARNING library

Banking on Parents

According to U.S. Census data, the majority of 18- to 34-year-olds are living with their parents (31.5% to be exact). Pew Research discovered that of those aged 25-34 living with parents, a “large majority say they’re satisfied with their living arrangement (78%) and upbeat about their finances (77%).” Marc Freedman, CEO and founder of, recently published an article in The Wall Street Journal explaining this shift in demographics both here and in the European Union’s 28 countries. To summarize, longevity, shifting job markets and delay in marriage have contributed to these statistics, and they aren’t all bad – they’re just different.

What we find more unsettling is the dependence of adult children (Baby Boomer or older) on their aging parents for financial support and housing. Dan Moisand, CFP, says in his recent article published in Financial Advisor magazine, “Most studies I have seen indicate that the most frequent perpetrator of exploitation and fraud against retirees is a family member, usually a child. Dad is often the alpha male. No one would ask him for money. When he passes or his grip loosens as he ages, Mom is much more approachable.”

As an advisor, our fiduciary responsibility is to care for our clients and their long-term desires. As they age into retirement, they may face different health challenges and even the death of a spouse, and are forced to face the relationships they have with each of their children.

It’s not easy or comfortable, but it’s necessary in order to protect your future and finances. Join us today to learn how to navigate those relationships and, ultimately, your conversations.