How much help should you give your children? Where do you draw the line?
With DH's best friend living with us, he's going through the debate over whether to buy or rent. Usually it's a pretty simple answer. Buy if you plan on staying put but rent if not. But the unknown factor in the equation is what if your parents were to "gift" you with the cash for a DP? Would that affect one's decision to buy?
I think it would. After all you are mitigating risk by not having to supply the cash. You are reaping potentially reward with minimal loss. And you have an opporunity to get started with life faster. But the truth is it a good idea for a parent to give such a gift?
I know this guy and his parents can afford it easily. But I don't think they should give him the gift because honestly I don't feel he's a very responsible guy. He's a nice guy, but he's 30 and hasn't saved at all for retirement. Instead he travels and spends all his money. He doesn't have any debts, but he also has no assets. Part of it is the expectation of having an inheritence, which is not a bad thing.
But I wonder if this is the right way to "gift" your children with money? Should you help them out? What would be a better solution? I'm interested because I wonder if DH and I will be in that position one day?