Unsustainable lifestyles. You never want to set your children up to fail by financially providing a lifestyle they won’t be able to maintain after you stop funding them, says Spero.
He knows one couple who temporarily paid rent on a Georgetown apartment in Washington, D.C., for their child, but the child’s income couldn’t cover the costs once the payments stopped.
Entertainment expenses. Going to rock concerts and sporting events is nice, but those types of optional expenses are not for parents of college graduates to front, says Spero.
Recurring expenses that go to infinity and beyond. Don’t pick up costs that don’t come with a clear end date, says Heider.
He has retired clients in their 70s who continue to underwrite the extravagant lifestyles of their children who are now in their 40s. “They [the parents] got used to it and never figured out how to stop,” says Heider.
Credit cards. One of worst things a parent can do is to give their adult child a credit card for emergencies, says Miller. Reason? What’s an “emergency” anyway? “Running out of beer money on Saturday night can be an emergency,” Miller says.