7 strategies for helping your child become financially independent

Life after college can be hard, especially when your child moves back home. High student loan debt and expensive rents, coupled with a low salary, can make living independently a challenge for someone just starting out. Parents can help their children get on their feet financially by teaching good money management skills.

“If someone needs to move back home and they’re not just using it as an easy way out — because their parents will pay for everything, cook, clean and do laundry — it’s a sign that your child is in financial trouble,” says Clare Levison, certified public accountant financial planner in Blacksburg, Virginia. “If they’re not able to live on their own, it’s an indicator that there are some financial issues.”

College grads frequently move back in with their parents, especially in metropolitan areas with a high cost of living. This living situation can help your child become independent, provided that he or she takes this time to build good money management skills. You have your own financial goals too, and supporting grown children when you can’t afford to may jeopardize your own plans, like retirement.

You may need to take a more hands-on approach with your child at first; here are steps to help do that.

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