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Should You Give Financial Support to Family Amid the Pandemic?

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You wouldn’t be alone if you did.

In fact, about 24 million Americans have provided financial support to adult children due to COVID-19, and 71% of retirees said they would offer financial support to their family even if it could jeopardize their financial future, according to a new Edward Jones and Age Wave study.

“We've certainly seen COVID-19's disruptive force on finances, with the pandemic influencing retirement timing and financial confidence," Ken Cella, Edward Jones Client Services Group Principal, said in a release.

What might you consider if you plan to offer financial support to your family?

Don’t put your retirement at risk. You can’t take out a loan to fund your retirement. Sure, it’s ok to cut back on your discretionary expense to help family. But don’t cut back on your needs and essential expenses.

Consider talking to a certified financial planner who can help you sort through your options, and help you understand the impact the "help" would have on your situation.

Consider, if you are able to afford to provide financial support, an intrafamily loan, rather than a cash gift. It’s great way of helping family members and a means for you to get paid back over time with gratitude.

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