Why is giving your grown grandchildren money a terrible thing to do?
Giving children big money, say 200$ for Christmas Eve, makes a damaging habit. Even at older ages, say in the 40s, they continue to look for such gifts. Grandparents love the grin on their grandchildren’s faces when they see such a gift. But you have to know this detrimental habit ruins their decisions in terms of finance in their adult life.
Sometimes people can’t afford the life they used to have in their parents’ home. It is damaging when they want the lifestyle they once had, and their income is not of a level to match those expectations. If they have studied in private schools and a spacious apartment, they continue to expect that.
Every parent or grandparent loves helping and supporting their children or grandchildren financially. It’s a negative attitude toward children, but it is also a risky behavior for a near-retirement parent.
As Joe Heider, president of Cirrus Wealth Management Group in Cleveland, says, numerous parents have logically gone through a retirement plan and saved enough money. However, they have withdrawn their savings for their grown children, threatening their retirement.