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Kids, Debt, and Love

No discipline seems pleasant at the time, but painful. Later on, however, it produces a harvest of righteousness and peace for those who have been trained by it. Hebrews 12:11

As parents we need to teach our kids how to handle financial responsibility. But what do you do when they're young adults and already awash in a sea of debt? Well, here are three ways you can help them without jeopardizing your own nest egg: 1) Pay only specific bills. Throwing money at their problems is never a long-term solution. For 'survival' expenses like rent, food, utilities, and medical, you can write a check to the specific company. However, when their major problem is credit card debt, do nothing. Your kids need to learn that credit cards are luxuries, not necessities. 2) Establish ground rules. When your adult children move back home you need to establish: a) how much they'll be contributing towards household expenses b) how long this living arrangement will be necessary c) if they're unemployed, ways they can pull their weight around the house while they look for work. 3) Think twice before co-signing a note. As the parent you may not necessarily see the monthly bill. That means if your child falls behind you can end up with a black mark against you. Two more suggestions: a) have them refinance the loan in 6-12 months in their own name b) have the bill sent directly to you. That way you can make sure the account's current, then pass the bill on to them for payment. God says, '...discipline isn't much fun...[but] Later...it pays off...' While holding kids accountable can seem hard, in the long run, you both end up winning. To do less, is not love!

Prayer
Heavenly Father, help me to be a parent that grows and develops my children into mature, responsible adults. You would have me do no less. In Jesus’ Name, Amen