How to Help Your Adult Child Achieve Financial Independence

Many young adults still rely on their parents for money. A recent Savings.com study found that the percentage of parents financially supporting adult children is at its highest point in three years. If your child lives at home or often asks for money, you can guide them in learning how to manage their finances and strengthen your bond in the process. These tips can get you started.

Support job readiness.

Unless your adult child has a job that can cover their living expenses, it will be difficult for them to gain independence. Help your child prepare for the job market. Review their resume, practice interview questions, and suggest places to look for work. Use your network to connect them with people in their field of interest. 

Set clear household rules.

Some young adults assume their parents will always help without realizing how it affects the family budget. If your child lives with you, talk about their responsibilities like paying rent, covering utilities and groceries, and helping with chores. Writing down agreed upon expectations often avoids confusion and prevents arguments.

Teach basic money skills.

Many young adults don’t know how to budget, which can make managing money feel overwhelming. Help your child create a realistic budget using online or paper-based tools. Discuss how to distinguish between wants from needs, understand interest, and calculate the true cost of debt. Focus on teaching valuable life skills, not just fixing short-term issues.

Make a plan to reduce financial help.

Instead of stopping support all at once, work together to gradually reduce it. This sets them up for success by avoiding sudden changes that can stall progress they may have already made. Start with smaller expenses, like streaming services, and move toward larger ones, such as car insurance. Write everything down with clear dates and amounts so they can prepare and budget wisely.

Build an emergency fund.

Living at home gives your child a chance to save money they would otherwise spend on rent. Encourage them to save at least 20% of their income for an emergency fund that can cover three to six months of basic expenses. You might even match their savings up to a certain amount. Having this safety net builds confidence and makes moving out more realistic.

Encourage problem-solving.

When your child faces money problems, don’t jump in to fix them. Instead, guide them through the process. If they miss a payment, help them contact the company to work out a plan rather than stepping in and paying it for them. Ask questions like, “What are three ways you could handle this?” or “What resources might help here?”

Set goals and track progress.

Work with your child to set clear financial goals with realistic timelines. These could include saving for a move, paying off loans, or earning enough to live on their own. Break bigger goals into monthly steps. This helps them stay motivated and shows that financial problems can be solved. Plan regular check-ins to track progress and make changes as needed.

Helping your adult child become financially independent takes time, patience, and steady effort. 

Fortunately, you don’t have to do it alone. We’re here to help. Visit our website for free educational resources specifically designed for young adults.