About 9 out of 10 parents are willing to help their child get out of debt. And student debt is a very common type of debt for young people today. If your child has taken a student loan, it’s probably the first loan they’ve ever received. That’s a huge responsibility, but it’s not unusual to have interruptions in our educational or professional careers (e.g., the COVID-19 pandemic). How can you help your child navigate their new financial situation?
The biggest factor you should consider is simple: Is it affordable for you? It’s easy for parents to put shame, guilt, and pride on the line when it comes to our kids in debt. But putting off your retirement or postponing car or home maintenance can cost you a ton later down the road. If your child is old enough to make a financial decision like a student loan, then don’t feel guilty if the best you can do is offer support and advice from afar.
Another idea is that you could offer payments on their loan instead of a gift on holidays and birthdays. That can ease their financial burden and allow them a little more breathing room with their money.
Lastly, if managing their money is proving too big a challenge on their own, teach them to create a budget and live off it. You’re an entrepreneur — you’re practically an expert at working with your resources! Give your children the expertise they need to do the same in their daily lives.
If your family needs more help with managing their debt and credit, then join our AFEUSA family and get help from our partners, like Take Charge America. They’ve helped over 1.6 million people restructure their debt and they can certainly help you and your loved ones, too.
Thanks for reading, folks, and I’ll see you next time.
Article by Charles Jackson, President of AFEUSA