NEW YORK (MainStreet) About 10% of mothers admit to living with their parents to save money in order to start a family, and the family support doesn't stop once the baby is born. Nearly 30% of moms said they received financial help from their parents or in-laws during the baby's first year.
"Children are expensive but couples aren't letting that hold them back from starting a family," says Carmen Wong Ulrich, a BabyCenter.com financial expert. "They are exploring ways of saving that they may not have previously considered like moving back in with their parents or accepting money from in-laws. This can be a good short-term solution for couples to get them started but they need to make sure they are taking the necessary steps to eventually become financially independent."
Problem is, most parents and in-laws of child-bearing women are either retired or trying to retire, and the extra financial strain can affect their savings.
"The danger for retirees or those nearing retirement is being confronted with situations where their children come to them for financial help," said Ron Grensteiner, president of American Equity. "They may try to provide financial assistance by dipping into money that has been allocated for retirement purposes. Depending on individual circumstances this could cause a retiree to alter what they do in retirement or when they retire or it could derail it completely."
In the event of unexpected life changes, such as welcoming an adult child back into your home or helping them to support a grandbaby, don't be afraid to set boundaries.