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Personal Finance from the Broke Perspective

How Long Are Your Parents Financially Responsible for You?

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Parents Financially Responsbile for You

From the time a baby is born until he is 17 years of age, experts estimate that parents will pay approximately $233,000 to care and provide for him (USDA).  That amount doesn’t even include the cost of college!  Parenthood is a lifelong responsibility, but the financial aspect has a definitive end according to the law.

How Long Are Parents Financially Responsible for You?

In the majority of states, parents are financially responsible for you until you reach the age of majority, which is 18.  However, if you live in Mississippi, the age of majority isn’t until 21!

Early Termination of Parental Responsibility

In rare cases, parents’ financial and legal responsibility can end early.

Termination of Legal Custody

One way this may happen is if the Department of Children and Family Services takes the children away from the parents due to neglect or abuse.  Parents are given time and classes to improve their parenting skills and regain custody of their children.  However, if they don’t change, their parental rights may be terminated.  In that case, they are no longer financially responsible for their children, but they also can no longer see their children.

Emancipation

Parents’ financial responsibility for you can also end if you become emancipated.  This can happen several different ways.

Natural Emancipation

There are two ways you can be naturally emancipated.

Marriage

You will be naturally emancipated if you marry before the age of 18.  Of course, the age in which you can marry depends on your state, but only four states—Delaware, New Jersey, Minnesota and Pennsylvania—don’t allow legal marriage before the age of 18.  The rest allow marriage at a variety of ages including as young as 13.  Once you’re married, your parents are no longer financially responsible for you.

Join the Military
Parents Financially Responsible for You
Photo by Jessica Radanavong on Unsplash

Likewise, you are eligible to join the military at 17.  If you do, your parents’ financial responsibility for you ends.

Minor Initiated Emancipation

In rare cases, a child can petition the court to be emancipated.  To successfully do so, a child must prove that he is mature enough and has the means to support himself.  While this doesn’t seem to happen frequently, there are plenty of child actors who have taken this step including Drew Barrymore who became emancipated at 14 and Macaulay Culkin who requested emancipation at 16.

Extended Parental Responsibility

In certain instances, parents’ financial responsibility for you may last longer than the age of majority.  This may happen if you have a disability and your parents petition the court to be your legal guardian.  In order for them to be your legal guardian, they will need to prove that due to a disability, you are unable to manage your affairs.  If your parents become your legal guardians, they will ultimately make financial and legal decisions for you.

Final Thoughts

In general, parents are no longer legally financially responsible for you in most states when you reach the age of 18.  However, there are several circumstances where this legal obligation may end sooner or extend longer.

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Should You Give Financial Support to In-Laws?

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Financial Support to In-Laws

Watching a loved one struggle financially can be painful.  If you have the money, you may want to step in and give them financial assistance.  However, before doing that, carefully consider.  As Dave Ramsey is fond of saying, “The borrower is slave to the lender.”  The last thing you want to do is have a family member see you as a master.  Nothing ruins relationships faster.  The situation gets even more complicated when you consider giving financial support to in-laws.

Reasons Not to Give Financial Support to In-Laws

There are two main reasons why you should decline giving financial support to in-laws.

Can Affect the Parent-Child Relationship

As mentioned above, one family member giving money to another family member, especially in the form of a loan, more often than not puts strain on the relationship.  That strain gets stronger when a child gives money to a parent.  There’s something about the imbalance of the child being in a better position than the parent that causes strain and embarrassment to both parties.

As much as you may want to help your parents or in-laws, doing so may not be worth the risk you’re taking to the quality of your relationship.

Can Affect the Spousal Relationship

When you’re married and discussing giving financial support to in-laws or your own parents, you’re adding another layer of complexity.  The last thing you want is to give money to your parents only to find out that your spouse resents giving money to her in-laws.  She may feel that the money you’re giving to your parents could be better used for your own family or your children.  This feeling is likely to fester if you’re routinely giving financial support to in-laws.

Remember, money issues are the leading cause of divorce.  If you feel lending your in-laws or parents money will cause financial strain, look at other options.  Try to find other ways to help your parents get back on their feet without risking both the parent-child relationship and the spousal relationship.  After all, if you end up divorcing over this type of issue, you’ll be even less likely to be able to help your parents after an expensive divorce.

Give a Gift Instead

Financial Support for In-Laws
Photo by Esther Ann on Unsplash

If you are financially secure and your spouse is onboard with the plan, why not consider giving your in laws a financial gift?  If your in-laws fall on hard times because of job loss or a health issues, give them a set sum once rather than letting them borrow the money.

However, I would caution against regularly giving them money.  Most people fall on hard times at least once in their lives.  However, if your in-laws regularly request money, likely something in their financial lifestyle needs to be adjusted so that they can be self-sufficient.

Final Thoughts

Giving financial support to in-laws is a risky proposition and not recommended to maintain healthy relationships.  However, if your in-laws fall on hard times, you might instead consider giving them a one-time gift.

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Best Family Finances of Shop-O-Holic Moms

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About 5% of the American population suffers from compulsive shopping. And, consider yourself a member of this club if you cannot stop making massive purchases. Having a loving family means you should prepare yourself for many fun filled moments as well as a number of surprises. Blame your lack of self-control when some of you just cannot resist the temptation to hit the stores and start buying things.

Even shopaholic moms feel stressed when they think about what products to buy every time they go shopping. When it comes to finding the best ‘formula’ for family finances, all you have to do is get started now.

Saving money and managing family finances is not a difficult thing to do when you are prepared. If you think you are the only one who wants to run and hide with the thoughts of slashing your spending, it is time you think again. You are a shopper and love the thrill of hunting for new things, but the only way to stay stress free is setting a goal for your family finances.

Time to become a Smart Shopper

Scrutinize Your Grocery Bills

Smart shopaholic moms stick to a budget and look out for the best deals. So you can start with your grocery bill. You can easily cut down your spending by taking out time for planning your menu weekly. Write down the list of ingredients you need for the week and make sure you don’t forget the weekly grocery sales. Also, keep your cookbooks handy that will help you plan a delicious menu for the coming week.

Use Credit Cards to Your Advantage

Many have settled their credit card debts easily, and even you can handle your family finances in a better way by becoming a ‘credit-savvy’ shopaholic mom. It only takes a little as 15 to 20 minutes to get a quick update about your financial standings. Keep a record of your monthly spending and see where exactly where you are using your credit card. There are chances that you come across a number of areas where you can make a change and help your family finances get better. Just make sure you only use your credit card when you cannot do without it.

Change Your Shopping Behavior

If you love to buy everything brand new, there is no question that your family finances will be in poor shape. Often overlooked, changing your shopping behavior is the magic formula to bring down your spending. Try to buy in bulk, and this should start with your grocery shopping. This is usually the largest category where you spend money and there are so many different ways you can whittle it down.

When you need to buy a product, go for generic and store brands instead of big brands. Not only can you find products at cheaper prices, but you can also prevent your family budget from going out. You can find quality furniture, DVDs, home décor items, kitchen appliances and similar accessories at best prices at secondhand stores and online bargains.

You can use a credit card to make purchases, but many stores offer lucrative discounts if you pay cash.

Go For End-Of-Season Sales

If you really want to save money, you can buy clothes and other accessories for the next year during end-of-season sales. You probably won’t notice, but your pockets will surely feel a lot better when you buy at the right price.

Choose the Right Entertainment Options When Going Out For Shopping

And finally, make sure you skip the highly priced entertainment options and go for ones that suit your budget. Even if you love sipping fancy juices and coffees when out shopping, you need to change your habit. You can make coffee at home and fill your travel mug. Your favorite beverage will be ready to go with you and there is no need to make painful adjustments to your monthly budget.

Not many of you realize this, but the extra cost of buying food and drinks in a mall can really add up on your spending. By breaking your fancy coffee drinking habits, you can save lots of money for better family finances.

In addition to ideas mentioned above, you can use your own creative thinking to cut down extra costs and watch your savings grow.