Family Credit

‍Outlet: New York Post
Author: Kyra Breslin

Key Takeaway

Financial support works best when everyone understands its purpose and limits. A conversation about the underlying problem, and what happens after the money is spent, can help families make more thoughtful decisions.

Michael McAuliffe Discusses Financial Independence

Family Credit Management President and Founder Michael McAuliffe contributed to a New York Post article examining financial support between parents and their adult children.

McAuliffe highlighted the importance of helping adult children develop the skills to manage financial challenges themselves. He encouraged parents to consider a key question:

“Am I creating an opportunity or creating a dependency?” -Michael McAuliffe, Family Credit Management, in the New York Post

Start by Understanding What the Help Will Solve

A request for financial assistance can involve very different circumstances. An unexpected expense, a temporary loss of income and a recurring monthly shortfall each call for a different conversation.

Before offering money, discuss what it will cover and whether the same problem is likely to return. If someone’s regular expenses exceed their income, a one-time payment may provide relief while leaving the monthly shortfall unresolved.

Reviewing income, essential expenses and debt payments together can help clarify what support would accomplish.

Set Clear Expectations About Financial Support

Unspoken assumptions can put strain on family relationships. Before money changes hands, discuss:

Whether the assistance is a gift or a loan
How much support is available and for how long
Whether repayment is expected and realistically affordable
What steps will help the recipient manage future expenses

Parents also need to understand how providing help would affect their own ability to pay bills, handle emergencies and meet existing commitments.

Support can include practical help, too: organizing bills, building a spending plan or helping someone find an independent resource for guidance.

Offer Support That Builds Financial Confidence

Helping someone organize their finances can be valuable alongside, or instead of, providing money. Working through a spending plan together can help identify essential expenses, debt payments and any gap between income and spending. Family Credit Management’s free financial resources offer a starting point for those conversations.

If credit card interest is contributing to the shortfall, explore ways to lower credit card interest rates before deciding how to help.

Sometimes, financial conversations are easier with someone outside the family. Our nonprofit credit counselors can help an adult child review their finances and understand their options, giving them space to ask questions and take ownership of the next steps.

Looking for guidance for yourself or a family member? Contact Family Credit Management to ask about getting started with credit counseling.