Recently I have heard many questions about people wondering if it is okay to accept a little bit of extra money from their parents after they graduate from college. These are not generally the people still living with parents. Most of these people already have jobs, not great jobs, but decent jobs, but want to continue with a higher lifestyle or they may want to move to a more expensive place to live. It is an important question to ask yourself.
Ideally you should become financially independent from your parents as soon as possible. This means that you are responsible for all of your personal expense and that you do not get a monthly stipend or check from mom or dad to help pay the bills. If you do this you can become dependent on your parents. It leads to sloppy money management and you can end up in a bad situation when they are no longer able to help you out. If you are living at home, you need to make sure you are ready to move out, so that you do not need additional help.
If you are having difficulty covering your monthly expenses then you have a serious income or spending problem that you need to address. It is important to consider what you can do to increase your income and change your money habits. If you situation is temporary, such as completing an internship or building a client list you should have a specific date after which you will be financially independent. It is important to establish these guidelines so that you are motivated to establish your financial independence.
Many people also wonder about whether or not it is acceptable to accept the occasional help from your parents. Some parents give their children the money for a down payment on their house. They may also help with car repairs or other big unexpected bills. It may not be clear whether or not you are financially independent if you accept this type of help. There are times when you should accept the gift, but it is important that it does not become a habit or that you consider your parents your emergency fund.
You can prevent this from happening by establishing a good size emergency fund. This will prevent the emergencies from overwhelming your budget and make it easier to deal with a financial crisis. Another way that you can prevent this is by paying your parents back when you turn to them for help in an emergency situation. Financial independence will help you to build wealth because it helps you become aware of how you spend your money, it establishes good habits and teaches you to plan and save.
