4 Reasons To Give Your Adult Child Money (And 2 Reasons Not To)

4 Reasons To Give Your Adult Child Money (And 2 Reasons Not To)

January 8, 2025 by  Cindy Lamothe  Money / Financial Planning

Like all things in life, too much of a good thing can go very, very wrong — particularly, when it comes to doling out money to adult kids.

According to experts, there are many appropriate instances when help is needed, and then there are times when doing so can hinder an adult child’s growth.

Here are the financial situations in which it is okay to give a grown child money — and when not to.

To Help With a Down Payment on a Home

“I suggest that contributing to your adult child’s down payment is a meaningful way to provide generational support,” said Max Avery, a Chief Business Development Officer at Syndicately. 

He said this investment in their stability gives them a solid financial start, as homeownership often builds long-term wealth. 

“This includes gaining access to favorable mortgage terms and avoiding costly rental payments.”

To Fund Emergency Expenses

Avery noted that the best way to offer monetary support is to cover emergency needs like car repairs, legal issues or temporary unemployment that prevent your child from spiraling into debt or compromising their financial stability. 

“This support should not be a long-term solution, but rather a temporary boost to help your child stay on track.” 

Help With Major Life Transitions

David Cooper, PsyD, therapist and strategic advisor of Yung Sidekick, observed that helping with money during tough transitions is a good reason to help adult children with money, as a way to make big life changes less stressful.

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