A Shift in Financial Planning: Helping Out Adult Children

A Wall Street Journal story about what it sees as an evolution in financial planning is pegged on a telling stat from the Pew Research Center: Roughly 60% of parents with kids ages 18 to 34 had helped them out financially in the previous year. That might mean something as minor as helping defray the grocery bill or as major as helping with a down payment. The story by Hannah Erin Lang makes clear that not all parents are in the position to help, and it runs through the familiar failure-to-launch arguments raised in opposition to the idea. But:

• "Among parents who have already covered more pressing financial needs, and who have the means to help, there is a resignation of sorts. Rising rents, ballooning college costs and a recent dearth of entry-level jobs have made it particularly challenging for younger generations to find a financial footing."

The shift is beginning to factor into young parents' financial planning, according to the story, which focuses on a couple with a 7-year-old daughter who have begun setting aside $1,000 a month for what they hope will amount to a "lifelong allowance" when she's older. "I think you either need to be comfortable with your kids struggling or you need to set aside some money now," says Robert Persichitte, a financial adviser in Denver. (Read the full story.)