The Bank of Mom and Dad

April 21st, 2006 Stewart Posted in Uncategorized |

The Bank of Mom and Dad - New York Times (May need BugMeNot to login.)

One quote from the article:
Although some may argue that the willingness of parents to subsidize adult children is prolonging their coming of age, Dr. Schoeni said his study suggests that extended education, the exploration of career options and delayed marriage are the causes of the long transition to self-sufficiency. Parental support “is not the driver of a delayed transition, it is a response to it,” he said.

Or is it, perhaps, the soul-crushing burden of tens of thousands of dollars of college loans that these kids are forced to absorb that prompts many parents to try to assist their kids financially? I know I’m usually the first in line to blame Boomers for coddling their kids (which they do) but this article almost completely ignores one of the major causes of debt among late Xers and early Mils entering the workforce.

Another quote:
But they need help to make ends meet, or put another way, to maintain a middle-class way of life.

Yeah, but those aren’t even the same thing. Lots of recent grads would love to be able to afford to live like middle-incomers, but are frankly too busy drowning in easy credit, student loans, rising utility bills and other expenses. They do in fact need help “making ends meet,” or put another way, not losing their shirts. The author of the Times article should be ashamed of themselves for trying to make it sound like these are the same thing.