NJ Parents Helping Out Adult Children Buy Cars, Homes [AUDIO]
It’s certainly a sign of the times. Parents helping their adult children purchase cars and homes due to a weak economy, high unemployment rate and rising taxes.
Rider University professor of finance Maury Randall says many New Jersey moms and dads are helping out their kids financially these days.
“The econominc conditions have placed many of these students just graduating from college into a bit of a bind and so their parents are giving them a hand.”
But Randall cautions parents about digging too deeply into their own savings.
“You could end up hurting yourself in the long run because you are in a sense sacrificing your savings. Parents need to make sure they have enough in their accounts to help their children.”
Its a symptom of the recession still, said Randall. “New Jersey parents are giving up everything to help their children start their own lives.”
Recent college grads have a much harder time faced with higher debt and lower wages, that many are simply postponing adulthood.
“Its making it that much more difficult for them to buy new things and start on their own.”
Randall says he’s optimistic things could turn around in a few years.
“Hopefully the economy will continue to get better, but for right now, more adult children are renting apartments and not buying those big ticket items like homes and new cars.”