i want to help my parents financially essay

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How to Help Your Financially Struggling Parents

There's more than one way to support your parents in times of need

i want to help my parents financially essay

Evaluate the Financial Help Your Parents Need

Help your parents financially without money, help your struggling parents with money, avoid the pitfalls of helping your parents financially, the bottom line, frequently asked questions (faqs).

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Watching your parents age can be a scary prospect, especially as they approach the point when they need more help from you. If your parents have money troubles, they may come to you for financial help. It can be difficult to help them financially if you're struggling with student loans or credit card debt, or providing for your own family. However, it is possible to assist your parents without going broke if you make a plan that factors in what they need and your capacity to help.

Before your parents retire or face serious financial hardship, have an honest discussion with them about the challenges they're having or expect to have and the type of and extent of help they need. You can either help your parents with money or through non-monetary support like financial advice. The right approach will depend on where your parents are financially now, where they want to be, and how you can help fill the gap. A financial advisor can help facilitate a conversation about these delicate topics.

If your parents have diligently saved, budgeted well, and are on track to cover their day-to-day expenses in the near future and their living and travel expenses in retirement, their challenge might be an increasingly unaffordable living situation or an inability to save. Non-monetary help might be sufficient for their needs, but it's still important to discuss the specific type of assistance that would best serve them, and if it's for ongoing help, how long they might need you to provide it.

However, if your parents are struggling financially, whether because they have unpaid debts, were laid off right before retiring, or had to take an early retirement, they may not be able to make ends meet now let alone achieve a comfortable retirement. They might prefer monetary support in this scenario, in which case it's useful to inquire about the amount they need.

Once you understand your parents’ current situation and retirement plans , you begin making plans for what you can do to help them.

There are several ways to support your parents without opening up your wallet:

Help them downsize. If your parents are finding their current home unaffordable because of its size, it may make sense for them to downsize . Help them run the numbers on how much a move to a smaller home would save them over time to determine whether it's worth it. The analysis should factor in their mortgage, housing-related expenses, and the cost of the move.
Guide them through a relocation. Living in a location with high property taxes, such as in a city with a good school district, can also put your aging parents in an untenable financial position. Volunteer to help your parents identify cities and states with a lower cost of living. You can even offer to help them pack and move to their new home.
Ask them to move in. If your parents can't afford to live independently anymore, assess their health, your current lifestyle, and the other members of your household to determine whether they can live with you. Taking in your parents can have a profound positive impact on their finances, often freeing them from a mortgage, rental payments, and associated bills.
Create a budget for them. If your parents are seeking ways to stretch their money further, a simple way to help them financially is to sit down together and draft a basic budget that factors in their income and expenses every month. If their income less than expenses is negative, they're breaking even, or the amount is positive but they're spending too much, look for areas where they can earn more or spend less to live more comfortably.
Help with maintenance or repairs. If your parents need help paying for car or home repairs, and you have the skills to do them, offer to do these repairs for them occasionally.

If your parents are past the point when non-monetary support can help, you may need to contribute real dollars to improve their financial situation. If you go this route, consider their needs alongside your own needs and financial constraints.

Make a Budget

It's important to create a monthly spending plan for yourself to determine how much, if any, you can reasonably allocate each month to your struggling parents and still cover your own expenses and contributions for retirement or long-term savings goals like your child's education. Rather than adding a single expense labeled "parents" to your budget, budget for individual expenditures you plan to cover for your them, such as:

Upcoming surgeries or potential medical emergencies
Medicines your parents rely on
Flights for your parents to visit you
Having your parents over for dinner a few times a week as they get older
Grocery shopping for your parents

With individual expenses listed in your budget, you'll be better poised to stick to your budget for your parents. However, you'll still have to establish a time frame for how long the payments will last (indefinitely or for a fixed period of weeks, months, or years). You'll also need to ensure that your parents prudently spend any money that you give them during that time. If they can't responsibly manage the money, make it clear that you won't be able to offer more, or offer to pay their bills for them.

As a couple, the amount you each set aside to help your parents financially should be agreed on between the two of you. Don't promise money to your parents without your spouse's or partner's knowledge.

Set Aside Money Now

You may be young now, but it's never too early to start saving, especially if your parents have no money for their current needs or have a financially insecure future. This is an important step to take when helping parents who are struggling financially because medical emergencies can happen suddenly and without warning. Having money set aside to help you cover some of these costs can make a last-minute situation less stressful.

You can allocate money for your parents' needs through an emergency fund, which you can draw on to pay for unplanned expenses, and sinking funds , which you can use to cover planned expenses like repairs for your parents' home. Keeping these funds in an interest-bearing account like a savings account or money-market account allows you to earn money on your deposits without any effort.

Experts recommend that you build an emergency fund amounting to three to six months' worth of living expenses.

Make a Long-Term Plan

Even if your parents are years away from retirement, it's a good idea to put a plan in place now for how to help them financially later so that you will not be scrambling to get power of attorney to manage their finances on their behalf or find the correct account information should your parents experience serious illness, such as dementia.

While you may want to do everything in your power to help your parents succeed financially, there are some financial decisions relating to your parents that you should think twice about:

Cosigning on a loan with your parents : If you cosign a mortgage or other loan on behalf of a parent, you become as responsible for the debt as your parent. If they default on the loan, you'll have to start repaying the debt, which can make it a risky undertaking.
Adding your name to your parents' property : If your aging parent adds you as a co-owner to the current deed on their house, the portion they transfer to you will be treated as a gift that is taxable to them, and if you later sell the property, to you.
Becoming the guarantor for your parents' medical bills : While certain states have what are known as "filial responsibility" laws that can force you to support your financially struggling parents, you are generally not responsible for your parents' debts . However, when filling out admission agreements at nursing homes and other health facilities, be careful not to sign as the guarantor, or the person who is financially responsible for the patient's bill, if it is not your intent. Doing so could make you responsible for the final costs of your parents' care.

If your parents are struggling financially, you can provide monetary or non-monetary support to improve their situation. Before you write them a check or offer your advice, evaluate their needs and your capacity to meet them so that you can arrive at an approach that works for all of you. This way, your parents can live in comfort and you don't have to compromise on the life you planned for yourself.

Can I help my parents through Medicaid spenddown?

The spenddown period allows individuals whose incomes are too high to qualify for Medicaid to subtract the costs of their copays and uncovered medical expenses from their incomes to reduce their remaining incomes to an acceptable range. Your parents might not have enough income left over to meet all of their living expenses if they do that and if their expenses and copays are particularly significant. You could help out by buying groceries or taking care of other expenses that they can't cover.

How many adult children support or assist their parents financially?

AARP reported in 2020 that 32% of adults ages 40 through 64 provided financial assistance to their parents and that 42% anticipated that they would be doing so in future years.

Fidelity Investments. " How Far Are Adult Kids Willing to Go to Help out Aging Parents? Much More Than Parents May Think, According to Fidelity Study ."

Fidelity Investments. " Is Downsizing Worth It? "

Cleveland Clinic. " Should Mom or Dad Move In With You? 5 Things to Consider ."

Consumer.gov. " Making a Budget ."

MassMutual. " Retirement: How to Preserve It While Helping Your Parents ."

Experian. " What Is an Emergency Fund? "

Whitaker Myers Wealth Managers, Ltd. " What’s a Sinking Fund? Why Do I Need One? "

MassMutual. " Are You Liable for Your Parent’s Nursing Home Bills? "

Experian. " Cosigners are Responsible for Debt Repayment ."

Internal Revenue Service. " Frequently Asked Questions on Gift Taxes ."

Fidelity Investments. " Estate Planning: Ways to Handle Your Home ."

Centers for Medicaid and Medicare Services. " Medicaid Spenddown and Extra Help ," Page 1.

AARP. " Midlife Adults Are Supporting Parents and Adult Children ."

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My Parents Are Struggling Financially: 8 Strategies to Support Aging Parents

April 2, 2024, build family wealth and happiness..

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Hello friends, Andy here! We've got an excellent guest post today from Kim Curtis of Wealth Legacy Institute . As many of us have aging parents, the last thing we want for them is to struggle financially. Kim provides us with some excellent advice on how to help our parents thrive in their later years. Enjoy!

If “my parents are struggling financially” hits home with you, you’re not alone. No one wants to burden their kids with the stress of money problems—even their adult children—but it gets harder to hide as time goes on. For some, the signs may go all the way back to childhood.

I grew up in a rural farming community in upstate New York. It was the sort of town where everyone knew each other, and secrets were hard to keep. When my parents divorced in my early teens, my mother had to support three daughters with no college degree and a resume featuring fifteen years of being a stay-at-home mom. She took a job at our local high school’s cafeteria, but it didn’t quite pay enough to make ends meet.

Any child who has grasped their family’s financial struggles has a vivid and visceral memory attached to the idea. For me, it was the government-subsidized school lunches my mom applied for to help support us. I had to give a red ticket to the cafeteria cashier, and I’d do everything I could to hide it. I’d wait until the line was empty, avoid my friends, or hide the ticket under my plate. That red ticket was a sign that my family was poor, and the idea of revealing it filled me with dread.

For better or worse, those experiences shaped my relationship with money. I struggled with student debt after college, and it took years for me to break the cycle of guilt and shame I associated with financial instability. The grace of a good friend helped me start the process, and slowly, the fear and anxiety surrounding money evaporated.

It was another decade before I started working in financial services, but my early struggles taught me an important lesson. You don’t need an advanced degree in finance or an alphabet of professional certifications to have a healthy financial mindset. You simply need the willingness and courage to confront your fears, desires, and fantasies around money.

How to Help Parents Who Are Struggling Financially

Seeing your parents struggle financially is hard at any age. As an adult, though, you’re in a position to help. Whether you’ve built a career, raised a family, or done both, you’ve collected valuable life experiences. And those experiences can provide a fresh perspective and practical advice for your parents.

The role reversal of a parent receiving help rather than being a caregiver can be tough to navigate. But with grace, honesty, and the effort to make changes it can also strengthen your family bonds.

Here are eight strategies to help your parents through their financial struggles.

Normalize Open and Honest Dialogue

The most important step in helping your parents through financial struggles is communicating. Figuring out how to have “the money talk” as they age can be difficult. Even under ideal circumstances, sharing financial information creates a feeling of vulnerability. But when you add struggles or debt, it’s hard to discuss openly.

To foster honest conversation, focus on how you can help. Don’t dwell unnecessarily on past mistakes or delve too deeply into what has led to your parents’ struggles. Judgment, criticism, and condescension are the last things they need.

Instead, discuss their present situation as a springboard for building a better future. Don’t shy away from hard questions, but ask them for the sake of identifying problems and solutions. Offer suggestions and ideas, but be sure not to give orders or make demands. The goal is to offer assistance constructively, not boss your parents around.

Help Construct a Budget

The idea of not spending more than you can afford seems obvious. But it’s easy to forget about a purchase, lose track of bills, or go out for dinner without worrying about the cost.

Creating a budget is integral to getting a handle on your parents’ finances. Tally up all of their essential costs like food, then determine what’s left over each month. From there, help them allocate how they can spend their money:

If they don’t have an emergency savings fund to cover 3-6 months of living, allocating some money each month to build one up is vital.
Do they have any major expenditures such as surgery or home repairs coming up to consider?
If there’s money remaining for discretionary spending, how do they want to use it?

Once a budget is in place, help them stick to it by reviewing it every month and evaluating whether it needs any changes.

Consolidate and Simplify Accounts

Many seniors have money spread across a variety of accounts. Checking, savings, 401(k)s, IRAs, pensions, and investment accounts are all common. It’s possible they even have a retirement account from an old employer that they haven’t looked at in years.

Helping your parents streamline accounts is a good way to get a better handle on their income and assets:

If they have several retirement accounts, combine them into an account with the lowest fees. Don’t ignore the tax consequences of cashing out various account types, though.
Move any cash savings into a high-yield savings account with a competitive interest rate.
Review open credit cards and help them focus on using a card with the lowest interest rate. If any unused cards have yearly fees, consider canceling them.

Investigate Government Benefits

Everyone is familiar with Social Security, the federally run retirement benefits program. What many people don’t realize is that there are many other government programs with a wide array of benefits. Depending on your parents’ age, income, health, and background, they could be eligible for any of the following:

Medicaid
Supplemental Security Income
Social Security Disability Insurance
Veteran's Benefits

Additionally, most states also offer a variety of programs to make sure seniors can meet their basic needs, such as:

Subsidized utility bills including power, water, and telephone
Property tax reductions or exemptions
State-run health insurance programs to supplement Medicare

Examine Insurance Plans

While many of these strategies look to cut costs directly, examining insurance is about total expenditure. Medical care costs more than ever, and it’s critical to ensure your insurance matches your needs.

Go over your parents’ health insurance and evaluate whether it’s the right fit. Would a plan with a higher monthly premium but better coverage make sense? Would Medigap coverage in addition to Medicare end up saving money? Are they eligible for Medicaid or a state-run prescription drug plan?

It’s also a good time to review other types of insurance like automobile, life, and homeowner’s and make sure all of their plans are adequate, appropriate, and up-to-date.

Consider a Housing Change

The average American spends almost 35% of their income on housing , which is the single biggest expense for most. As such, it’s a good idea to look at reducing housing costs to help save money.

For some, this could mean downsizing your home . Perhaps your parents have stayed in the family house once all of the kids moved out and find themselves with unused space. Whether they own or rent, moving to a smaller home can save on mortgage or rent costs, as well as associated costs like energy and water usage.

If your parents live in a city with a high cost of living, relocating entirely might make sense. Uprooting and moving to another city or state is a difficult process, but it can lead to huge savings.

Evaluate Food Options

Eating out can be fun, but the costs add up quickly. If your parents like to cook, helping them rein in their spending on food can even be fun. They can look at it as a chance to find fulfillment in the kitchen, and have weekly family dinners to foster quality time.

If they’re unable to shop and/or cook for themselves, look at meal delivery services. Meals on Wheels has a nationwide network of local branches, but there are similar services that might be a better fit for your parents.

Establish Limits

As much as you want to support and assist your parents, you also need to set boundaries. Most of us already have a full plate between our families and careers, and adding parental obligations can feel overwhelming. Keeping sandwich generation stress in check is critical to your well-being.

One of the most important aspects of the process is setting realistic expectations. You can offer help, but your parents will need to do their part, whether it’s sticking to a budget, following through with subsidy and aid applications, or keeping you updated on the situation. If they don’t follow through, you need to establish early on that you can’t do everything for them.

You also need to decide how much tangible assistance you can provide without risking your own family’s finances. Cosigning on a loan or contributing to bills might be helpful, but doing so can create huge problems for you later if they default.

Final Thoughts on My Parents Are Struggling Financially

Helping parents who are struggling financially is a delicate process. You want to help guide them on a path to financial stability, but you also want to respect their autonomy and not overextend yourself.

Like most things in life, this will be a journey and a learning process. There are myriad ways to reduce costs and save money, but the support of loved ones as they tackle financial struggles is invaluable.

Approach the process with love, respect, and patience, and you’ll help your parents back onto a path of financial stability for a brighter future. To get started, consider using a tool like Monarch Money to help you manage money together. When you work from the same page, you can conquer virtually any hurdle.

Are your parents struggling financially? In what ways are you trying to help them in their later years?

Please let us know in the comments below.

I’ve been helping my parents since I was in early twenties. Now 40 years old I’m still giving my parents money every month to two months. I’m starting to feel super sick over the stress I carry for their financial problems. I want to envoy my day to day life but all I do is carry the worry of what they’ll need and that they don’t have enough. But at end of day I’m a single woman supporting my children also st same time supporting my parents as they need it. I don’t know what to do anymore because of this continues I won’t have anything for my future.

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Applying For Scholarships

Financial Need Scholarship Essay Examples (2023)

Jennifer Finetti Oct 2, 2022

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Many scholarships are awarded based on financial need. In order to win these scholarships, you must explain the nature of your financial need. In the guide below, we’ll explain how to write these types of essays to increase your chances of winning. Check out these scholarship essay examples for financial need scholarships.

How to write financial need scholarship essays

Here are some tips for writing financial need scholarship essays:

Maintain a positive tone throughout the essay . You do not want to come across as self-pitying. Focus on ways you learned and grew from past experiences – how they made you stronger.
Do not diminish other people’s suffering. This is a competition, but that doesn’t mean you should belittle your competitors. In fact, it would be better to say “I know there are many worthy candidates for this scholarship, but…” than to say “I have suffered far more than…” Show respect in everything you write.
Frame your essay around a specific event. You may add other details if you have space to, but use one experience as the thesis for your essay.
Avoid controversial statements and opinions. When discussing events from your past, do not belittle someone else or talk negatively about a group of people. You never know who will be reading your essay.
Tell your story with honesty. Do not fabricate any details to make yourself sound needy. Your past and present circumstances will speak for themselves.
Don’t try to sound philosophical. Some students will do this because they think it makes them seem smarter, but it rarely has that effect. Focus on proofreading and writing solid content. That is enough intelligence on its own.
Discuss your career goals, if possible. You may not have room for this if the essay is short. If you do have room though, discussing your career goals will indicate a plan for the future. Review boards reward determination.

You know why you need financial aid. Tap into the key elements of your circumstances and use them to craft the perfect essay.

Many scholarships are awarded based on financial need. In order to win these scholarships, you must explain the nature of your financial need. In the guide below, we’ve provided examples of scholarship essays for financial need scholarships, along with some tips to help you write your own essay.

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Example 1: “Provide a statement of financial need”

Some scholarships will simply ask for a statement of financial need. There are no parameters to follow. You’re left to write whatever you want. Typically, a statement of financial need is two or three small paragraphs. This will come out to roughly 150-200 words, but it could be slightly longer. Think of this as a cover letter for your scholarship application, highlighting the key elements of your financial need. Don’t build up to the thesis. Get directly to the point.

I am the first person in my family to graduate high school, and thus the first to attend college. Both of my parents dropped out of school when they were teenagers. Because of their limited education, they have always worked in entry-level positions, earning barely enough to put food on the table. My first job I got was at the age of 12 delivering papers, and I have worked hard ever since to relieve pressure from my family. I enrolled in Mississippi’s HELP program during my senior year, which covers tuition and fees at select colleges in the state. I also have a Federal Pell Grant to cover my housing. However, I still need funding for books, supplies, and transportation to campus as needed. I am an engineering student, and our classes come with high fees. My parents cannot contribute to my college expenses, and I cannot work much while I’m in school. This scholarship would help me avoid costly student loans that could take years to repay.

Example 2: “Describe your financial need in 100 words”

This essay is even shorter than the financial need statement. It may be one of several short answer questions you need to fill out. Working with 100 words is tricky. That only leaves room for about 7-10 sentences, depending on length. Make compelling statements using the fewest words possible.

Also note that grammar errors and misspellings will be much more noticeable in this short essay. Carefully proofread your writing before submitting the scholarship application.

I got pregnant and dropped out of high school when I was 15. By the age of 20, I had two more children, and we all shared a one-bedroom apartment. I worked three jobs to pay the bills, but I never earned much. When my oldest started high school, I did the same. I got my GED at 29 and enrolled in nursing school. My financial status has improved now with a GED, but I’m still a single mom with three kids. I want to become a registered nurse to give my children a stable future. I appreciate your consideration.

Word Count: 100

Example 3: “Explain your financial need in 500 or more words”

This scholarship essay prompt is the opposite of the one above. You have much more room to discuss your circumstances. Talk about your family life, your income, and other restraints that contribute to your financial aid . Try not to throw too much in the essay though. You want the information to flow together seamlessly. Edit carefully, and give the readers a full view of your situation.

My name is Brandon Noviello. I am a sophomore on track to earn my Bachelor of Arts in Sociology. I need financial aid because I do not have a family to contribute to my education. I was in foster care for two years before I aged out of the system, and now I am pursuing a degree completely on my own. I was raised by a wonderful woman who didn’t always have a wonderful life. My mother got pregnant after a sexual assault, but she was determined to raise a smart, successful man. She went through an accelerated program to graduate high school before I was born. She devoted the rest of her life to supporting me, both financially and emotionally. My mother’s family cut ties with her the moment she became pregnant. Life wasn’t easy for us, but I never wanted for anything. She always found a way to keep me fed, dressed, and in school. Unfortunately, she lost a long-term battle with depression when I was 16, and I was put into the foster system until I reached adulthood. I did not have a positive experience with foster care, but I admit, I had no desire to. My mother’s passing weighed heavily on my mind, and I felt an overwhelming sense of anger, regret, and frustration. There was one gleam of hope in my experience though. I had a great social worker. I fought her decisions every step of the way, and she still managed to find a family to get me through high school. My social worker was the only person I invited to my graduation ceremony. She helped me realize how much one person’s efforts can make a difference in the lives of others. I was only one of countless children she had helped over the years. I researched how to become a social worker so I could help other children like me. My plan is to work with the Department of Human Services in the foster care and adoption division after I graduate. In order to make my dreams a reality, I need financial aid. I am working as a server to pay for food, utilities, and basic necessities, but I do not earn enough to pay for college as well. I go to school during the day and work at night. Furthermore, I have a maximum Pell Grant to cover most of my tuition, but I still need help with other expenses. I did not do well in high school as a result of my mom’s passing, but I have done well in college. I have a 3.25 cumulative GPA, and I have never made less than an A in a degree-related course. As such, I am committed to being successful despite my circumstances, and I want to help young people find that motivation within themselves. I look forward to working with children and teens in the foster system, so I can be the hope that someone else was for me.

Word Count: 498

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Scholarship Essay

Jennifer Finetti

As a parent who recently helped her own kids embark on their college journeys, Jennifer approaches the transition from high school to college from a unique perspective. She truly enjoys engaging with students – helping them to build the confidence, knowledge, and insight needed to pursue their educational and career goals, while also empowering them with the strategies and skills needed to access scholarships and financial aid that can help limit college costs. She understands the importance of ensuring access to the edtech tools and resources that can make this process easier and more equitable - this drive to support underserved populations is what drew her to ScholarshipOwl. Jennifer has coached students from around the world, as well as in-person with local students in her own community. Her areas of focus include career exploration, major selection, college search and selection, college application assistance, financial aid and scholarship consultation, essay review and feedback, and more. She works with students who are at the top of their class, as well as those who are struggling. She firmly believes that all students, regardless of their circumstances, can succeed if they stay focused and work hard in school. Jennifer earned her MA in Counseling Psychology from National University, and her BA in Psychology from University of California, Santa Cruz.

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How to Write a Statement of Financial Need

Gabriel Jimenez-Ekman is a content editor and writer at Scholarships360. He has managed communications and written content for a diverse array of organizations, including a farmer’s market, a concert venue, a student farm, an environmental NGO, and a PR agency. Gabriel graduated from Kenyon College with a degree in sociology.

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Prior to coming to Scholarships360 for her first internship in 2022, Savannah utilized her campus publications by joining various fashion publications that are offered at Ohio University. One of those publications is Thread Magazine, where Savannah has had the opportunity to work on articles related to world-wide related fashion news and events, as well as articles closer to home, such as a fashion piece on Athens hometown-hero Joe Burrow. This year, Savannah also had the opportunity to be a content writing intern for Aiken House, as well as a section editor for Southeast Ohio Magazine. In 2023, Savannah served as the Chapter President of her sorority, Alpha Gamma Delta. These collective experiences, as well as her experience currently working for Ohio University’s Undergraduate Admissions, has led her to Scholarships360 and aided in her passion for helping students better understand the college admissions process and financial aid. In her free time, Savannah enjoys horseback riding, watching Formula One races, traveling, and spending time with her friends and family. Savannah will graduate from Ohio University in May 2024 with a degree in Journalism News and Information and a certificate in Italian Studies.

Caitlyn Cole is a college access professional with a decade of experience in non-profit program and project management for college readiness and access organizations.

Maria Geiger is Director of Content at Scholarships360. She is a former online educational technology instructor and adjunct writing instructor. In addition to education reform, Maria’s interests include viewpoint diversity, blended/flipped learning, digital communication, and integrating media/web tools into the curriculum to better facilitate student engagement. Maria earned both a B.A. and an M.A. in English Literature from Monmouth University, an M. Ed. in Education from Monmouth University, and a Virtual Online Teaching Certificate (VOLT) from the University of Pennsylvania.

Many students want to know how to write a statement of financial need since it is a challenge. Deciding what is appropriate to include or omit can make all the difference, so it’s also especially important that you use your words economically and effectively.

What is a Statement of Financial Need?

College is an investment, but for many students financial aid may not be enough to cover the cost. Because of this, students may find themselves needing to write a statement of financial need, which is a brief statement explaining your financial situation. Generally, the statement of financial need will go beyond what is captured by the FAFSA or CSS profile.

In this article, we will provide a step-by-step guide to show you how to write a statement of financial need.

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$2,000 No Essay CollegeVine Scholarship

How we organized this article.

We’ll start with a “Do’s and Don’ts” list. This list will answer questions you may have about which details to include in your statement. Once you’ve got an idea of what should be included, we’ll show you a general template for writing these statements, including some examples. This will help you illustrate your points thoroughly while staying under the word limit. We also included some relevant FAQs just in case you had a few more questions.

Related: Top need based scholarships

What to include in your statement

A quick rundown of your family’s employment situation. This includes who in the family is working, what type of job they hold, and if you are working to help support your education or to help support your family
Whether you are a first-generation college student
If you or your parents are immigrants or refugees
Whether you or your parents speak English as a second language, or do not speak English at all
If you were raised by a single parent, or in a foster home
Any extenuating circumstances that could be affecting your family’s finances, such as medical issues or job loss. Any recent shortfall in your family’s financial situation is worth mentioning
If you are a member of any minority group (for many colleges, recruiting underrepresented students is an institutional priority as they seek to create a diverse community).
Opportunities that you would be able to accept if the scholarship helped meet your financial need. An example would be if you are pursuing an unpaid or low-paying internship over the summer, but needed to earn money to help pay for next semester’s tuition

What to avoid in your statement

Try to avoid a negative or dramatic tone. Even if your financial situation is stressful, try not to communicate that stress in your statement. It’s best to let the facts speak for themselves
Avoid comparing your situation with the situations of others. Remember, this essay is about you, and why someone in your situation could benefit from the scholarship
Avoid focusing too much on tangential details. Try to only include the details that are immediately relevant to your ability to further your education. For example, if your family has experienced a financial shortfall because your father lost his job, you don’t need to go into details of your father’s business or his chance of being re-hired. You need only to mention that it has led to your family receiving less than their projected income for the year, and that this impacts your ability to pay for college

Related: What’s the best scholarship essay format?

Now that you know what to include in your essay, you’re ready to start writing your statement of financial need. This can be done by following a step-by-step process:

Create an outline

Write your introduction.

Format your essay with body paragraphs

Finish with a strong conclusion

Let’s get started with the first step…

To get started with your outline, try writing out a bullet-point list of the details you’d like to include in your essay. Include all of the details that emphasize your financial need. This includes demographic information, your parents’ employment, and any extenuating circumstances your family is experiencing. Once you have that list, use it as a guide to help format the statement of financial need.

Formatting your essay with body paragraphs

Body paragraphs are your opportunity to dive into the relevant details. Elaborate on the points that you mentioned in the introduction to give a more vivid picture of why you are having trouble paying for your education. These include extenuating circumstances, parents’ employment status, and your employment status.

In addition, you can use these paragraphs to help illustrate your sense of financial responsibility. If you have a college savings account or have taken initiatives to help yourself secure the funds for college, mention them here. Emphasize that there is still a gap between what you are expected to pay and what you are able to pay.

Also see: How to write a financial aid appeal letter

Now is the time to discuss how the increased funding would create opportunities for you. You can mention the internship that you would take if you didn’t have to work all summer to pay your tuition, or describe how one of your other financial hardships would be lightened by receiving this scholarship.

The conclusion is where you make the scholarship committee realize what they could do for you by granting you the scholarship; once you’ve established your need, use the conclusion to illustrate how important this opportunity is to you. We hope that you now know how to write a statement of financial need. Best of luck!

Submitting your statement of financial need is not a guarantee of more aid

We should also mention that submitting your statement of financial need is no guarantee that you will receive more financial aid. While students can be hopeful that they will receive an adjusted aid package, they should be prepared for their situation not changing.

In this case, students can turn to options like scholarships , student loans , or choosing a more affordable college option.

See also: What to do if financial aid is not enough?

Key Takeaways

A Statement of Financial Need can be beneficial for students who know they may not be able to afford college
Always try to be positive when writing your Statement of Financial Need
Structure your statement in an easy to read, concise way

Frequently asked questions about how to write a statement of financial need

How is financial need determined, what is proof of need, what documents can be used in a statement of financial need, how long should a statement of financial need be, scholarships360 recommended.

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How to help your parents financially — without going broke

The media makes it seem like all Millennials mooch off their parents. But an increasing number of families are finding themselves in the opposite situation. A study found that one in five Millennials help support their aging parents.

And we’re not talking about loaning some money for dinner here and there. The study found these Millennials are giving their parents an average of $18,250 per year.

Yeah … I know … I didn’t believe the number at first either. I read the study a few times to make sure I had it right.

I assumed medical bills were to blame, but the study found that nearly three quarters of the financial aid goes towards general living expenses like food and housing. I get that — I wouldn’t let my parents starve or live on the streets (or move in with me for that matter).

Half of those giving their parents money were shocked to find out just how much money their parents needed. We naturally assume our parents have saved enough for retirement. But many didn’t, or lost a lot of it during the recession.

On average, the young adults who find themselves taking care of mom and dad carry $63,000 of their own personal debt:

They owed an average of $40,000 towards their mortgages
They carry an average of $16,000 in student loans
They owe $6,000 in other forms of non-mortgage debt like credit cards

Helping out their parents also stops these people from fulfilling their own dreams. Because of the money they’re loaning (or giving) away:

39% of Millennials have delayed saving money for retirement
48% have delayed buying a home
38% have delayed having children
29% have put off marriage

If these people keep putting those things off, especially saving for retirement and buying a home, they may find themselves needing financial help when they’re old too. Only they may not have children to borrow from.

Want to know the weirdest part of this whole thing?

Only about half of the people supporting their parents have even talked to them about what’s going on!

That’s right. Everyone involved — the parents and the children — are so uncomfortable about the situation that they’d prefer not to talk about it at all.

Why are they avoiding the conversations?

21% said they feel guilty bringing it up.
17% said their parents are sick, and they don’t want to add to their ill health by having an uncomfortable talk.
17% said it’s just too weird to talk about.

I get that.

When you reach a certain age, you become aware of everything your parents did for you during your childhood. And you’ll do anything to help them during their time of need.

But you need to think about yourself, and your old age, too.

If you’re supporting your parents (or think you may have to one day), you may have some questions about how to deal with sticky situations that pop up. So we asked an expert for some advice:

Can you dictate how your parents spend the money you give them?

Let’s say you give your mom a few hundred dollars. Because you feel weird about it, you don’t ask her what she plans to spend the money on and just assume it’s for housing or food. Then you overhear her telling your Aunt Mary she lost ten dollars at Bingo the other night. Should you pipe up and say, “What the hell, mom?”

“You have a right to know what your parents are doing with the loan to a certain extent,” says Jorie Scholnik, an Etiquette Associate and Professor at Santa Fe College.

Before any money is loaned, there should be clear expectations about the frequency and amount of the contribution. That could be a time to also talk about how the money is going to be spent. As long as the money is going toward needs, you have to accept that you loaned the money and it is now in your parents’ hands. If you see that irresponsible purchases are being made, you can clarify your expectations for lending the money.

That means you have to talk to them about the money before you give it to them, and regularly thereafter.

Yes, it’s awkward. But if you don’t want to get angry and potentially ruin your relationship with your parents forever, ten minutes of awkwardness will be worth it.

Should your siblings have to chip in, even if your parents only asked you?

“If your siblings are in a position where they can afford to contribute and they have a good relationship with your parents too, then yes,” says Jorie.

Remember that it’s not just the siblings who should be involved in any discussions about your parents’ financial situation. Significant others are part of this too.

“A lot of resentment can form between siblings and even the siblings’ spouses if only one child contributes and the others have the means,” Jorie says.

If a sibling is just as broke as your parents, he/she can help in other ways. “They can take care of the lawn or run errands,” Jorie says.

Should you make a plan for repayment, even if it’s unlikely?

“You can make a plan to repay the loan, but go into the situation knowing that you may not get back any money that you loan,” Jorie says. “Consider this money gone when you loan it to your parents.”

As with any loan, don’t give them more than you can afford. And don’t put off saving for your old age entirely just to help your parents during their golden years.

Your parents will understand. “In general, parents don’t want to put their children in a position where they are struggling financially,” Jorie says.

Instead, help them develop or revise a budget.

Talk to them about moving to more affordable housing or renegotiating their debt. If worse comes to worst, bankruptcy may be a smart move for older adults with lots of debt.

These conversations aren’t easy or fun. Voices will likely be raised. But if you don’t want to be in their situation when you’re their age, these are must-have conversations.

One in five millennials financially supports one parent or both parents.
Most of these millennials are putting their own financial health at risk to do so.
Almost half of all financial supporters haven’t spoken to their parents about the reasons they’re in need of money, or where the money is going.
Experts recommend talking about where the money is going, if it will be repaid, and how all family members can contribute to the parents’ well-being.

If you’re supporting your parents, or are concerned you might have to in the future, it’s important to start with clear communication. The conversations can be awkward, but they can save you and your family money, time, and the health of your relationships.

About the author

Patty Lamberti

Patty is a Professional-in-Residence at Loyola University Chicago, where she teaches journalism and is also the Program Director of Multimedia Journalism. She has worked as a producer, as an editor, and has written for a number of publications on a variety of topics, including finance for Money Under 30.

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How to write a financial need statement for your scholarship application (with examples!)

So you’re applying for a scholarship that asks you about your financial need. What do you say? How honest or specific should you be? What is TMI? In this article, we break down how to pen an awesome financial need scholarship essay or statement.

What to include in a financial need scholarship essay

Template to structure your financial need scholarship essay, introduction: your basic profile, body: your financial situation and hardships, conclusion: how you would benefit from this scholarship, was this financial need essay for a college financial aid application , now, reuse that same essay to apply for more scholarships, additional resources to help you write your financial need scholarship essay.

Writing a financial need scholarship essay

Many scholarships and college financial aid awards are “need-based,” given to students whose financial situation requires additional support. That’s why one of the most common college scholarship essays is a statement of financial need. This might be very explicit (“Explain your financial need”), somewhat explicit (“Describe your financial situation”), or quite open-ended (“Explain why you need this scholarship”).

In all cases, scholarship providers want to get a sense of your family’s financial picture: what your family income is, if you personally contribute to it (do you have a job?), and how much additional money you need to attend your target college (your “financial gap”).

If the essay prompt is a bit more open-ended (“Explain how this scholarship would help you”), your essay should probably be a combination of a financial need statement and a career goals / academic goals essay. That’s because you want to show how the award will help you financially and in your academic or career goals.

Usually this statement of financial need is a pretty short scholarship essay (150-300 words), so unlike a college essay or personal statement where you have ample word count to tell anecdotes, you’ll likely need to get right to the point.

Be sure to include:

If you are an underrepresented group at college, for instance, part of an ethnic minority or the first in your family to go to college
Any relevant family circumstances, like if your parents are immigrants or refugees, as well as your parents’ occupation and how many children/family members they support financially
How you are currently paying for college, including what you personally are doing to contribute financially (like working student jobs)
What financial challenges/difficulties your family is facing, for instance, if a parent recently lost their job
How you would benefit from the scholarship–including your academic and career goals (if word count allows)

Also remember to write in an optimistic tone. Writing about your financial situation or hardships might not be the most positive thing to share. But you can turn it around with an optimistic tone by writing about how these challenges have taught you resiliency and grit.

Student writing a financial need scholarship essay

Give a short introduction to who you are, highlighting any family characteristics that might make you part of an underrepresented group at college.

“I am a first-generation American and the first in my family to go to college. My family moved from El Salvador to New York when I was seven years old, to escape the violence there.”

Example 2:

“I am from a working-class family in Minnesota. My family never had a lot, but we pooled our efforts together to make ends meet. My parents both worked full-time (my father as a mechanic, my mother as a receptionist at the local gym), while my siblings and I all worked weekend jobs to contribute to the family income.”

Dive into the details. How are you currently planning to pay for college? The idea here is to show that you and your family have made a good-faith effort to earn enough money to pay your tuition, but that it has simply not been enough.

Make sure you describe your parents’ occupation, any savings (like a 529 College Savings Account), and any student jobs. You might also discuss any sudden changes in fortune (e.g. parent fell ill or lost their job) that have ruined your original financial plans.

Example

As immigrants with limited English, my parents have had to accept low-paying jobs. My father is an Uber driver, and my mother is a housekeeper. They earn just enough to pay our rent and put food on the table, so I’ve always known they could not help me pay for college. So I’ve been proactive about earning and saving my own money. Since age 11, I’ve worked odd jobs (like mowing my neighbors’ lawns). At age 16, I started working at the mall after school and on weekends. Through all these jobs, I’ve saved about $3000. But even with my financial aid grants, I need to pay $8000 more per year to go to college.

Bring it home by wrapping up your story. Explain how you plan to use the financial aid if you’re awarded this scholarship. How will you benefit from this award? What will you put the money toward, and how will it help you achieve your academic and/or career goals?

Scholarship review boards want to know that their money will be put to good use, supporting a student who has clear plans for the future, and the motivation and determination to make those plans a reality. This is like a shortened, one-paragraph version of the “Why do you deserve this scholarship?” essay .

Winning $5000 would help me close the financial gap and take less in student loans. This is particularly important for me because I plan to study social work and eventually work in a role to support my community. However, since these jobs are not well paid, repaying significant student loans would be difficult. Your scholarship would allow me to continue down this path, to eventually support my community, without incurring debt I can’t afford.

My plan is to study human biology at UC San Diego, where I have been admitted, and eventually pursue a career as a Nurse-Practitioner. I know that being pre-med will be a real academic challenge, and this scholarship would help me focus on those tough classes, rather than worrying about how to pay for them. The $2000 award would be equivalent to about 150 hours of working at a student job. That’s 150 hours I can instead focus on studying, graduating, and achieving my goals.

Sometimes this financial need statement isn’t for an external scholarship. Instead, it’s for your college financial aid office.

In that case, you’re usually writing this statement for one of two reasons:

You’re writing an appeal letter , to request additional financial aid, after your original financial aid offer wasn’t enough. In this case, you’ll want to make sure you’re being extra specific about your finances.
You’re applying for a specific endowed scholarship that considers financial need. In this case, your financial need essay can be quite similar to what we’ve outlined above.

Now that you’ve written a killer financial need scholarship essay, you have one of the most common scholarship essays ready on hand, to submit to other scholarships too.

You can sign up for a free Going Merry account today to get a personalized list of hundreds of scholarships matched to your profile. You can even save essays (like this one!) to reuse in more than one application.

You might also be interested in these other blog posts related to essay writing:

What’s the right scholarship essay format and structure?
How to write a winning scholarship essay about your academic goals
How to write an awesome essay about your career goals
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I Support My Parents Financially. Can I Have a Say in Their Spending?

A reader asks for permission to tell her parents how to allocate the monthly checks she and her husband send.

By Philip Galanes

My husband and I send monthly checks to my parents to help support them. They live rent-free in an apartment we bought them. We feel fortunate to be able to help. Now, my mother has decided she would like to move for the length of an upcoming construction project in their building. She is worried about loud noise and dust. I don’t want to question their spending, but this seems impulsive. The building fees and taxes we pay indirectly will go to waste if they move temporarily. Presumably, they will use their leftover allowance to pay rent on the second place. I am concerned about my mother’s temper (toward my father and others) if we nix this plan. And my husband may feel unappreciated if they take our generosity for granted. How can I persuade my parents not to be spendthrifts on our dime?

I may be off base, but I don’t buy your question: It seems pretty clear that you do want to challenge your parents’ spending. And your concerns about your mother’s temper and your husband’s annoyance sound like projections of your own feelings. But guess what? I’m here to tell you that it’s totally fine to feel your feelings!

Now, I am also sympathetic with your mother. Worrying about problems in the future — the noise! the dust! — can often be more distressing than those problems turn out to be. Tell your mother you understand her feelings but suggest that she hold off on moving until she sees how disruptive the construction really is.

She may go along with you. Even if she doesn’t, I don’t share your concerns about your parents moving temporarily from a construction zone. Be clear with them that you will not be increasing their monthly allowance. As long as they live within their budget, though, why should you object? Your generosity does not entitle you to approve every expenditure.

Separate Checks

Because we are two women, most restaurant workers do not see my wife and me as a couple, even if we’re with our teenage children. They often ask if we want separate checks. They don’t seem to do this with couples or families that are headed by a man and a woman. Asking for “our check” still results in being asked if we want separate ones. It feels as if the waiters are telling us: “We don’t see you as a family,” which is unpleasant. How can we avoid this?

It can be painful to feel invisible. (Some readers may take for granted the validation that comes with being seen as a family.) A few thoughts: Hinting will probably not change entrenched worldviews. When you ask for the check, be direct: “May my wife and I have our check, please?”

Or establish your relationship earlier. When the waiter asks for your order, say: “Will you go first, dear wife?” Either approach should work. Even better, challenging people’s assumptions this way may help them treat the next L.G.B.T.Q. family with greater respect.

Thanks, but Could You Keep It Down?

A few nights ago, after a fight with my wife, I packed a bag and stormed off to my cousin’s apartment. She and her new husband were kind enough to take me in. They recently moved in together, and I was their first overnight guest. When they went to their bedroom, they didn’t go to sleep. I heard loud, boisterous lovemaking. Should I have said something the next morning? I think they should know how thin their walls are, but I didn’t want them to think I was complaining.

I feel confident that I will not be the only reader who is more concerned with your response to a fight with your wife than with your cousin’s sex life. Even when we need a break from an argument, it’s less destabilizing to retreat to separate corners than to storm off with an overnight bag.

As for your cousin: After you thank her for taking you in, warn her that the walls in her apartment transmit sound clearly. No need to mention sex. This may be useful information for the next time she and her husband have an overnight guest — which, hopefully, will not be you.

You Shouldn’t Have!

I have never been good at accepting gifts or compliments. I always react with an “I don’t deserve it” feeling and response, then I immediately start planning payback. Do you have any advice for these awkward encounters?

Many of us struggle with issues of worthiness and self-esteem. (“I’m not good enough to warrant this kindness.”) Others have been raised to see the virtue of false modesty. Both result in the frequent rejection of loving gestures that others try to make toward us. And that’s a shame! It robs everyone involved.

The next time someone gives you a gift or pays you a compliment, say: “Thank you! That’s so kind.” Then force yourself to stop. Do not spit back a return compliment or make a self-deprecating remark. Just express gratitude and sit with your (likely) discomfort, knowing that you’re probably being too hard on yourself.

For help with your awkward situation, send a question to [email protected], to Philip Galanes on Facebook or @SocialQPhilip on Twitter.

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Home » Personal Finance Resources » What to Do If Your Parents Need Financial Help

What to Do If Your Parents Need Financial Help

Posted by News Team | Nov 16, 2019 | Personal Finance

3 minute, 30 second read

What to Do If Your Parents Need Financial Help

Most parents in the U.S. provide some sort of financial support to their adult children, multiple surveys have found. But often, financial aid goes the other way.

A 2015 survey by TD Ameritrade found 13% of American adults provided financial support to a parent. Millennials were far more likely than older generations to report they were helping their folks. Of people born between 1981 and 1996, 19% helped support their parents, compared with 13% of Gen Xers (1965 to 1980) and 8% of baby boomers (1946 to 1964).

Sometimes the money is provided happily, or at least without resentment, by those following cultural norms or personal conviction that they owe it to their parents. Other times, financial aid to parents is a source of tension — between parent and adult child, among siblings and between partners.

Certified financial planner Austin A. Frye had no idea when he married his wife four decades ago that they would one day support her parents. The older couple, now in their 80s, cover their day-to-day expenses with a union pension and Social Security. Frye and his wife cover unexpected expenses and travel for her parents, Frye says, and also pay $15,000 a year for a long-term care policy.

Frye says that though he’s happy to be in a position to help his in-laws, he still wishes they had saved money for their retirement.

“They just spent what they made,” Frye says. “They didn’t really plan.”

Certified financial planner Kashif A. Ahmed, on the other hand, comes from a Pakistani culture where younger people get into arguments about who will have the honor of caring for an older relative. Ahmed said he needed a spreadsheet to coordinate the dozens of relatives who volunteered to help his great-grandparents in their final illnesses.

Ahmed invited his mother to move in with him after his father died in 2001. His wife, Simona, an economist who grew up with similar values in Romania, supported the move, and Ahmed’s mother is helping to raise their four daughters, ages 6 to 16.

Ahmed says financial advisers from other cultures often have trouble grasping the deep sense of obligation. He’s heard peers criticize clients who aren’t saving enough for retirement or are neglecting other goals while supporting parents, saying the clients don’t “get it.”

“I’ll say, ‘No, no, no. You don’t get it,’ ” Ahmed says.

Balancing competing goals is what financial planning is all about. If you’re supporting a parent or think you may in the future, the following steps could help make the balancing act a bit easier.

TALK TO YOUR PARTNER: If you’re married or in a committed relationship, it helps to get on the same page about how much you’re willing and able to give. Brainstorm different scenarios, such as emergency expenses (how much can you give, and what constitutes an emergency?) or long-term care (can you provide care in your home or help pay for in-home or nursing care?). If you’re not clear what you can afford, a consultation with a financial planner could help. If you don’t have a partner, talking to a trusted friend or a financial planner can help you clarify what you can offer and when.

TALK WITH YOUR PARENTS: Just over half of the people supporting parents in the TD Ameritrade survey had ever talked with them about it. Financial planners say that understanding the parents’ financial situation can help you prepare, and might also provide an opportunity for you to reduce their need for your help. You could help them budget, give them a session with a financial planner or check Benefits.gov for assistance programs. You also can let them know how much help you can afford to provide.

ROPE IN YOUR SIBLINGS, IF YOU HAVE THEM: Even if they can’t contribute financially, they may be able to help in other ways: running errands, taking parents to the doctor, handling bill paying and other paperwork, or providing respite care.

TAKE CARE OF YOURSELF: You may have to delay retirement, buying a house or having kids to support your parents. Many people do, according to the survey. But you should have a plan to eventually reach your own goals. Unlike your parents, you may have only yourself to rely on when you’re older.

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What to Do If Your Parents Need Financial Help

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Most parents in the U.S. provide some sort of financial support to their adult children, multiple surveys have found. But often, financial aid goes the other way.

Frye says that though he’s happy to be in a position to help his in-laws, he still wishes they had saved money for their retirement .

“They just spent what they made,” Frye says. “They didn’t really plan.”

“I’ll say, ‘No, no, no. You don’t get it,’ ” Ahmed says.

Balancing competing goals is what financial planning is all about. If you’re supporting a parent or think you may in the future, the following steps could help make the balancing act a bit easier.

Talk to your partner. If you’re married or in a committed relationship, it helps to get on the same page about how much you’re willing and able to give. Brainstorm different scenarios, such as emergency expenses (how much can you give, and what constitutes an emergency?) or long-term care (can you provide care in your home or help pay for in-home or nursing care?). If you’re not clear what you can afford, a consultation with a financial planner could help. If you don’t have a partner, talking to a trusted friend or a financial planner can help you clarify what you can offer and when.

Talk with your parents. Just over half of the people supporting parents in the TD Ameritrade survey had ever talked with them about it . Financial planners say that understanding the parents’ financial situation can help you prepare, and might also provide an opportunity for you to reduce their need for your help. You could help them budget, give them a session with a financial planner or check Benefits.gov for assistance programs. You also can let them know how much help you can afford to provide.

Rope in your siblings, if you have them. Even if they can’t contribute financially, they may be able to help in other ways: running errands, taking parents to the doctor, handling bill paying and other paperwork, or providing respite care.

Take care of yourself. You may have to delay retirement, buying a house or having kids to support your parents. Many people do, according to the survey. But you should have a plan to eventually reach your own goals. Unlike your parents, you may have only yourself to rely on when you’re older.

This article was written by NerdWallet and was originally published by The Associated Press.

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How can I take back control of my life when my parents support me financially?

You don’t need to earn your own money to make adult decisions – it comes from taking responsibility for yourself and your actions

I am a woman in my early 20s, an international student, in the first year of a five -year medical degree.

I’m completely financially dependent on my parents. I can’t apply for student loans, and the savings I had from my previous job are nowhere near enough to cover tuition fees and costs of living. My degree is so intensive (especially for me, as I am neurodivergent) I hardly find time to sleep and exercise properly, let alone pursue a part-time job .

I feel that I won’t be able to become a proper adult and make adult decisions on my own until my late 20s .

Since my mother keeps track of my expenses, it’s almost like I can’t do anything behind her back, like have a pet or stay out late, and especially move in with my boyfriend.

I’ve tried to think , from my parents’ perspective, as to why they would be against this. I assume that, being religious, they see it as being sinful as well as dishonourable.

My boyfriend has suggested getting engaged so my parents would approve of us moving in together, but my parents are so conservative I doubt this would win their approval .

How do I stop them from having so much control over my life ?

I wonder if this isn’t two separate questions. Was that the deal you made? Your parents pay and you do exactly what they say – or is that what you presume is expected of you?

You told me your parents are from a different culture, and are religious, so I have kept that in mind in my reply.

I went to AFT-registered family psychotherapist Ragni Whitlock, who has some experience of your culture. She asked: “If your parents weren’t providing the finance, how much control would they have anyway?

“This can be one problem that can arise when children become immersed in a new culture and want to take on that new culture while their parents may want to preserve theirs. It can create a lot of tension.”

Whitlock wanted to know how much you’ve been able to talk to your parents up until now. Because you are neurodivergent, we wondered if their “involvement” was them trying to help you transition to living on your own in a foreign country. How does your mum keep track of your expenses?

Given your parents have “let” you come to a foreign country to study, and are supporting you, I’m hoping they might not be as rigid as you think.

I do think a conversation is needed. You don’t need to start earning your own money to make adult decisions.

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You could start by saying something like: “It’s great you’ve been keeping an eye on me, but I’d like to learn how to manage my finances” (after all, at some point you are going to be doctor with a great deal of responsibility!). If this works, I’d question how much they need to know about your personal life, given you are already an adult.

That is presuming you want to move in with your boyfriend (you are absolutely right not to get married just to gain parental approval), and that may be harder to manage.

I asked Whitlock what to do if your parents were immovable and told you: “It’s our way or the high way.” She said then it would be about what’s most valuable to you right now: your boyfriend or your medical degree.”

If your relationship with your family has hitherto been good, think long and hard before causing a rupture over a man who may or may not be in your life for very long. Making adult decisions can be tough.

Every week Annalisa Barbieri addresses a personal problem sent in by a reader. If you would like advice from Annalisa, please send your problem to [email protected] . Annalisa regrets she cannot enter into personal correspondence. Submissions are subject to our terms and conditions .

Comments on this piece are premoderated to ensure the discussion remains on the topics raised by the article. Please be aware that there may be a short delay in comments appearing on the site.

Ask Annalisa Barbieri
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Where to Find the Best Scholarships for College Freshmen

Learn about scholarship opportunities for college freshmen and where you can find them.

How to Apply for College Scholarships

College scholarships can help reduce educational expenses. Learn how to find college scholarships and get tips for submitting a winning application.

The Best College Scholarships for High School Students

Here are some of the best college scholarships for high school students and where you can find more helpful resources regarding college finances.

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1. Give a Cash Gift

2. make a personal loan, 3. co-sign a loan, 4. create a bill-paying plan, 5. provide employment, 6. give non-cash assistance, 7. prepay bills, 8. help find local resources, the bottom line.

Personal Finance
Family Finances

8 Ways to Help Family Members in Financial Trouble

During times of hardship, people often turn for help to a family member. Often, people get into financial difficulties if they lose a job, overuse credit cards, or incur expensive medical bills.

Unfortunately, many well-meaning family members have found themselves sucked into the financial abyss by the problems of a loved one.

Let's take a look at a few options you can consider to help your family members in financial trouble without hurting yourself in the process.

Key Takeaways

When a loved one is struggling financially, take a pause before providing money and consider whether they have a plan for avoiding the same pitfalls in the future.
Make sure you have a clear agreement about the form of help, such as a loan or gift, and any terms for repayment.
If you want to give the person something outright, consider giving them cash, paying one of their bills directly, or providing them with non-cash assistance, like gift cards, or certain resources they need.
Consider providing them with a job, if you can, or help them to create a bill-paying plan, or to access local resources like career counseling and training programs.
If you want to help them with a loan, consider whether you want to make a personal loan or to co-sign a loan that they are seeking from a bank or other financial institution.

If your loved one is having a short-term cash flow problem, you may want to give an outright financial gift.

Decide how much you can afford to give without putting yourself in financial jeopardy, and then either give the maximum amount all at once (and let your loved one know that's the case) or perhaps give smaller gifts on a periodic basis until the situation is resolved.

Make sure it's clearly understood that the money is a gift and doesn't need to be repaid so you don't create an awkward situation for the gift recipient.

Annual Exclusion

If you're considering giving them a substantial sum of money, you'll need to keep an eye on the annual gift tax exclusion set each year by the Internal Revenue Service (IRS). In tax year 2024, the exclusion is $18,000 per person.

Your family member may approach you and ask for a short-term loan . Talk frankly, put the terms of the loan on paper , and have both parties sign. This will help ensure that each party is clear on the financial arrangement they're entering into. Some loan details you'll want to include are:

The amount of the loan
Whether the loan will be a lump-sum payment , or if it will be divided and paid out in installments upon meeting certain conditions (e.g., securing another job or paying down existing debt)
The interest rate you will charge for making the loan and how it will be calculated ( compound or simple interest )
Payment due dates (including the date of full repayment or final installment due)
A recourse if the borrower doesn't make loan payments on time or in full (e.g., increasing interest charges, ceasing any further loan payments, or taking legal action)

If you are going to lend more than $10,000 and/or you're going to charge an interest rate that is substantially different than the going rate for most borrowers, you may want to talk to a tax professional. There can be unique tax implications for low-interest loans among family members.

When helping out a loved one in financial distress, there is a risk of getting sucked into a loop of loans and payments. To avoid this, make sure the terms and structure of the loan or gift are clearly defined in advance.

Your loved one may be interested in obtaining a loan or line of credit (LOC) to help with short-term financial needs, but what if their credit requires getting a co-signer? Would you be willing to co-sign a loan or LOC from a bank, credit union, or online lender?

Potential Pitfalls

Before saying "yes" and putting your good credit reputation in the hands of someone else, it's important to realize there are legal and financial implications to co-signing on a loan. The most critical thing to understand is that you are legally obligating yourself to repay the loan if the other borrower fails to do so.

The lender can take legal action against you and require that you pay the full amount, even if you had an agreement between you and your family member that you would not have to make payments.

This delinquent loan will also now affect your personal credit. So if your sister/brother/uncle fails to make payments on the loan on time and in full, the lender can report the negative account activity to the credit bureaus to file on your credit report which, in turn, can lower your credit score.

Consider the Risks

Co-signing a loan is serious business. The fact that your family member needs a loan co-signer means the lender considers them too great of a risk for the bank to take alone. If the bank isn't sure they'll repay the loan, what guarantees do you have that they will?

It may also mean that you could have more difficulty getting a loan for yourself down the road since you are technically taking on this loan and its payment as well.

Before co-signing for a loan, make sure you:

Ask for a copy of your family member's credit report, credit score, and monthly budget so you'll have an accurate picture of their finances and ability to repay the loan.
Meet with the lender in person (if possible) and be sure that you understand all the terms of the loan.
Get copies of all documents related to the loan, including the repayment schedule.
Ask the lender to notify you in writing if your family member misses a payment or makes a late payment. Finding out about potential repayment problems sooner rather than later can help you take quick action and protect your own credit score.

Often, people in a financial crisis simply aren't aware where their money is going. If you have experience using a budget to manage your own money, you may be able to help your family member to create and use a budget as well. To break the ice, offer to show them your budget and your bill-paying system and explain how it helps you make financial decisions.

As you work together to help them get a handle on their financial situation, you may find places where they can cut back on expenses or try to increase their income to better meet their financial obligations.

If you're not comfortable making a loan or giving a cash gift, consider hiring your family member to assist with needed tasks at an agreed-upon rate.

This side job may go a long way toward helping them earn the money they need to pay their bills and help you finish up any jobs that you've been putting off.

Treat the arrangement as you would with any other employee—spell out clearly the work that needs to be done, the deadlines, and the rate of pay. Be sure to include a provision about how you'll deal with poor or incomplete work.

If you don't have cash to give a loved one, recognize that your time, patience, and ability to help them brainstorm and problem-solve are also valuable assets that you can provide.

If you're uncomfortable or unwilling to give your family member cash, consider giving non-cash financial assistance, such as gift cards or gift certificates. You'll have more control over what your money may be used for, and you can easily buy gift cards in varying amounts at most stores.

You may want to consider prepaying one or more regular bills that your loved one receives (rent/mortgage, utility bills, or insurance premiums ) to help them during their current financial crunch. Offering to do something, such as making their car payment, may help them avoid a short-term crisis and give them the extra time they need to work out of their situation.

You may not be able to provide your family member with financial assistance or hands-on help. But you can still play a key role by helping them find local professionals who can steer them in the right direction, such as:

Career counselor and employment agencies
Welfare agencies and similar services
Credit and debt counselors
Lenders who can provide short-term solutions

How Much Money Can I Gift Before the Gift Tax Applies?

For tax year 2024, you can give up to $18,000 per person.

Can Budgeting Apps Help a Family Member?

Budgeting apps can help, as long as your family member understands the value of a budget and uses the app regularly. Two well-regarded budget apps you might consider are YNAB (You Need a Budget) and Simplifi by Quicken.

Is Lending Money to Family Members a Good Idea?

It may or may not be. Making a loan can show that you care about your loved ones. But getting your money back is another thing. And making, or co-signing for, a loan may result in negative effects such as ill will and damage to your financial standing if it remains unpaid.

Family members and money aren't always a good mix. But, in tough economic times or when faced with unexpected emergencies, a loved one may truly need your financial assistance. Find out specifically what help they need to work their way out of their current situation.

Before you commit to helping financially, be sure to think through what you can and can't afford to do. Remember, if your own resources are limited, there are other meaningful, effective, and creative ways to help your family members.

Internal Revenue Service. " Frequently Asked Questions on Gift Taxes: How many annual exclusions are available? "

Quicken. " Quicken Simplifi ."

YNAB. " Change Your Relationship With Money ."

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How to Manage When Your Parents Need Financial Help From You

The tables have turned and your parents need financial help from you. here's how to handle it..

<p>toddler, grandmother and mother sit together outdoors</p>

The Squeeze

It’s often tricky — both emotionally and financially — when you parents need money from you.
Giving your parents money to help solve short-term cash flow issues is relatively simple, but be sure to talk with them and understand their big financial picture.
If you can't (or don't want to) lend any money, consider working with them to set up a budget or connecting them with a financial professional

If your parents ever ask you for financial help, you'll probably think back to every time they lent you money when you were younger. Or when they bought your kids something they really wanted, even if they didn’t always have the cash on hand. Or the times they paid for things you needed, like clothes, food, a roof over your head, and maybe even luxury items like college or a new car.

When the tables turn and your parents ask you for financial assistance, you might want to say yes without a second thought. But is it the right decision for you and your family? Whether you say yes needs to be based on not just love, but also your current financial situation.

So here’s how to approach lending a financial hand to your parents:

Figure out why they’re asking

Some parents might have lost a job or ended up with an unexpected expense that they can’t afford, like a medical bill or car repair. However, some parents might be notoriously terrible with money and are asking you for help. Before writing a check, consider asking them a few key questions to start, like:

What do you need it for?
What does your financial picture look like right now, and in the long-term?
Is there anything else that’s financially pressing you’re putting off?

If your parents are frustrated by your questions and perceive them as being judgmental, remind them that you want to be able to help with the big picture, not just pitch in with short-term cash. (This is also a good strategy so you can be aware if this one loan is likely to lead to others.) Given that 36% of American retirees between age 60 and 69 don't have enough money to cover even a single year of minimal care, your questions are not misplaced.

You also want to ask questions about their overall financial picture, because a parent who previously had healthy money management skills and is now suddenly struggling with finances could also be showing early warning signs of dementia and Alzheimer’s disease. So no matter how you look at it, wanting to know more is about care, not questions.

Review your income

If you have the money to spare, you might think about handing over what your parent or parents need with no questions asked. But be clear up front whether this is a gift or a loan. And if it's a loan, you'll need to discuss all the terms in advance: payback timeframe, whether they will pay interest on the loan, when payback will begin. And, of course, as with any loan, there's always the possibility you might not get it back — and you need to be comfortable with that reality.

Take the time to go over your finances and review your budget before you leap to yes. Remember that saving for own retirement and paying off any debts you have have to be a priority. Only make this jump if you have the spare cash to do so.

A parent who previously had healthy money management skills suddenly struggling with finances could also be showing early warning signs of dementia and Alzheimer’s disease.

Keep the discussion going

Your parents might have come to you in an emergency and don’t expect to ask you for money again anytime soon. But don’t assume that their needs are over and done with. Keep talking to them about their income and where their money goes. Become a partner in understanding their larger financial picture, and offer your time and attention to help them think through tricky things like long-term health insurance and whether they need to appoint a financial proxy in case of illness or an accident, so you can ensure their bills are paid and their assets are protected. Even though money is still a taboo topic — especially among older generations — try to get them comfortable talking about finances with you.

Help in other ways

While giving cash is an easy way to help, it might not always be the most efficient or feasible — at least for you. Aside from giving your parents money, there are other ways you can help them out. For instance:

Pay for a few meals or take them grocery shopping. If you don’t live with your parents, this is a great excuse to hang out with them regularly. You may not have to adjust your budget too much to incorporate this new expense.

Add their phones to your plan. Adding lines to your cell phone plan will cost you a little extra and save them a lot. It’ll also give you peace of mind that their phone will never get shut off from their having missed a bill payment.

Take them to appointments and errands. If your parents need a ride somewhere, try to fit it into your schedule. If you work for yourself or from home, you might have a little bit more flexibility with this. If you can, work their errands around your typical day and week.

Create or update their budget. Even minor financial changes can have a significant impact on your parents’ financial well-being. Sit down with them and review their budget. Go over their income and expenses to see where they can earn more and cut out unnecessary spending.

Develop a financial plan. While you might not be the right person for the job, you can give your parents the tools they need to get and stay on the right track. Help them find a financial planner and, if necessary, an estate planner or eldercare financial planner . Getting the right team in order and setting up a long-term life plan could mean less anxiety and stress for all of you, which is always a good investment.

About the Author

Dori Zinn has been covering personal finance for more than a decade. Her work as been featured in The New York Times, Forbes, Yahoo!, CNET, and more. She covers credit, debt, budgeting, investing, college affordability and other topics to help people learn about money.

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4 money lessons I’m teaching my daughter from my own financial disasters

I don't want these mistakes to be passed down.

By Shannon Vestal Robson January 28, 2021

As my two-year-old daughter grows up a little more every day, I think about all the fun stuff I get to teach her . Then I remember all the tough stuff I have to teach her, too, and I resolve not to shy away from it, or let anything fall through the cracks. One of those things is one of the touchiest subjects out there: money .

I know it’s not fair to just automatically blame my adult problems on my parents—I was a grown woman when I racked up credit card debt, this I know—but I just wish I’d been sat down and been taught the basics about managing my money, especially (yep) the dreaded credit cards.

Going through this has taught me to learn from those money mistakes—and give my daughter a solid financial understanding.

I was 22 when I got my first credit card, a college graduate who knew everything, and the power was heady. I first used it to buy a computer, and when the bill came, I didn’t want to spend the bulk of my paycheck on it, so I paid the minimum. When I wanted something, I knew I could charge it, and there was no one forcing me to pay the whole balance. I’d do it someday, I thought. I was 30 when I sat in my bank’s branch and asked for help. They consolidated my debt—with fees and interest, of course, and I had a regular payment that would come out of my account every month for three years. But it was done. The thing I remember most is how scary it was to confront my credit card debt.

But I needed to feel those feelings. Like financial planner Brittany Castro recently told Motherly , “You might feel shame, guilt, overwhelm, stress or anxiety, and it’s healthy to process those emotions—but don’t let them weigh you down and feel like you’re a horrible person, or that it is connected to your self-worth.” That’s exactly what I had let it do.

For a while, I blamed my mom for not telling me how to manage money, but I know she also wasn’t taught money lessons. We didn’t grow up with much of it; my parents divorced, and as a single mom, my mother pretty much lived paycheck to paycheck, struggling to support four growing girls. But as I know now, just because you don’t have a lot of money doesn’t mean you can’t learn about it. When I was just starting out working and living paycheck-to-paycheck myself, I always told myself I’d get better about money once I eventually made more. Wrong! As my salary grew, so did my mistakes. My habits just got worse.

It took consolidating my debt, and then getting laid off just as my husband and I decided he would go back to school full time, for me (and us, as a family) to grow up about finances. We went on a budget to see how far we could stretch severance and unemployment until I got a new job. And by ‘went on a budget,’ I mean we put every expense in a spreadsheet and looked at where all our money was going. It was shocking. Seeing the money we were spending on things we didn’t need when it should have been allocated to more important things made me feel frivolous. And dumb.

Then, I took the control back. Seeing it all written down opened my eyes. Then I resolved that I wouldn’t let my kid go down this path.

From my money mistakes, these are the lessons I will teach my daughter.

Credit cards are not your friend. I’m not going to tell her she shouldn’t have a credit card, and I will teach her about building up good credit. But I will teach her they are for emergencies, and occasional spending if and only if she pays off the balance (not the minimum!) Every. Single. Month. (Disclaimer: I have many friends who are great at accruing airline points and making their credit cards work for them. Good for you if you can too! But I’m not one of those people.) I will let her know the minimum payment is not because they’re really sweet about not needing that much back right now; I will teach her how interest and fees can bury her if she doesn’t pay that thing off.
Force yourself to look at where your money goes. Remember when people used to balance their checkbooks? Yeah, me neither. I used to just check my checking account, make sure there was money in there, then spend. I made sure my bills were paid, sure, but the rest was my fun money. When I had debt and was not saving a penny, only the dreaded overdraft fee email could rain on my parade. When I finally created a spreadsheet with my expenses, I scrutinized where all my money went, and why. But pretending it wasn’t a concern kept me from setting real goals for my financial future.
Save. Even if it’s just a little. I didn’t save for so long because I started out making so little money in comparison to my living expenses that I never thought I’d get ahead. But when I started making more, I started spending more. I wonder now how much I could have been saving (or paying off debt with) if I’d just squirreled away a little extra over the years. Now not only do I have a financial advisor (yes! Me! Can you believe?) to help me with retirement savings, I also have a setting on my bank account to directly deposit a set amount of money each month from my paychecks.
Stop being afraid to be a grownup about money. This one is the biggest one, and the thing that kept me from getting my debt in order and putting me on a path to financial health. I put off thinking about it when I was younger (note: You’re never as young as you think you are when it comes to money), then when I racked up debt across multiple cards, I didn’t want to know how much it was. I kept it all at bay until it finally threatened to drown me.

I have no idea what my daughter’s financial future will look like as an adult. I don’t know if she will hear my lessons and do her own thing anyway. But I will give her the tools I wish I’d had.

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Financial Need Essay: Examples & Writing Guide

Unfortunately, not everyone striving for education can afford it. Some courses are so expensive that even well-to-do citizens need financial assistance. They can write a scholarship application letter or refuse the undertaking. In such a case, students are supposed to submit a financial need essay.

Our specialists will write a custom essay specially for you!

Funding authorities cannot assist each student. That is why you need to assure them in your statement of financial need that you deserve the scholarship more than anyone else. This article by Custom-Writing experts provides you with a clear structure. Besides, you will see an accurate statement of financial need essay sample.

In a financial need essay, you should: introduce yourself, explain how you're now paying for college, justify your need, explain your potential benefits, and make a closing statement.

✅ What to Include
🚫 Mistakes to Avoid
👀 Essay Sample

🔗 References

✅ statement of financial need: what to include.

This type of writing is a statement of a student’s life circumstances . But there is a limited number of aspects that you need to include. Otherwise, the committee will reject your request for financial aid as it will not look persuasive enough. Follow the next five steps to write a scholarship-winning essay. If you will still be unsure of how to write this kind of paper, explore the example in the next section.

Introduce yourself. Your readers learn about you for the first time. It is polite to tell them who you are . Stress that you are the first person in your family who will attend a college. If you pertain to an ethnic group that may be underrepresented at the college, mention it.
Explain how you’re now paying for college. Are you working to pay for your studies? Does this work take the time you could spend learning?
Justify your financial need. Explain why you need assistance and the difficulties you meet in paying for your studies.
Describe how you would benefit from the scholarship. Will you have to drop out if you are not given the scholarship? What will happen when you receive it? Explain that you will be able to study more if there is no need to work after classes.
Make a closing statement . Do not beg and avoid being too emotional. Your essay should sound professional. Thank your readers for taking the time to consider your request.

Here, you can read about other secrets of scholarship essay writing .

🚫 Financial Need Essay: Mistakes to Avoid

There are several big mistakes that students can make in their scholarship essays.

👀 Statement of Financial Need: Essay Sample

We hope that this short, but comprehensive guide will get your essay going! Good luck and be sure to check out our blog for more writing tips.

Just in 1 hour! We will write you a plagiarism-free paper in hardly more than 1 hour

✏️ Financial Need Essay FAQ

There is no universal way to justify why you need money. Every situation is unique. Every person might have their life circumstances. Typically, students apply for scholarships because they can’t work full-time yet. Thus, they cannot afford the desired program.

Two key strategies to ask for scholarship money are those below.

1. Write an impressive motivation letter mentioning your tight budget,

2. Write an application letter describing your tough life circumstances (especially if you have incomplete family, etc.).

For additional details, check examples of such papers online and in books.

Applying for a scholarship implies proving why you deserve this assistance. Demonstrate your strong motivation, your real passion for learning, describe your educational background. If you want to be chosen for the program, take a look at examples and templates available online. You need to highlight your strengths and motivation .

It’s probably a bad idea to begin with the statement of financial need itself. Instead, demonstrate your strong motivation and even passion first. Briefly describe your background and highlight relevant educational and work experience. Acknowledge that financial assistance would help you to develop further.

Writing a Winning College Scholarship Essay | The Princeton Review
5 Ways to Make Your Scholarship Essay Stand Out – U.S. News
How to Write a Scholarship Essay – Maryville University Online
How Aid Is Calculated | Federal Student Aid
Definition of need | Student Financial Aid | University of Missouri
How need is determined | Student Financial Aid (UWashington)
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Thank you for the financial need essay writing tips you have posted. They are very helpful! I’ll return to this blog for more useful guidelines for writing papers!

Ha, fully posting! How to ask for money? Yeah, it is a great idea to write a financial need essay in a humorous manner.

Kinda Frugal

Why I Stopped Lending Money to My Parents (And You Should Too)

Posted: January 14, 2024 | Last updated: March 6, 2024

<p>Depending on the type of relationship you have, it can be tough to see your parents struggling financially and do nothing when you have the funds to help. Some people feel obligated to do so even if they aren’t close with them, while others think it’s their pleasure to help their parents out of a sticky situation. No matter the place you’re coming from when you lend them money, there are some reasons that you might want to pump the brakes on dishing out cash to your parents every time they’re in need.</p>

Depending on the type of relationship you have, it can be tough to see your parents struggling financially and do nothing when you have the funds to help. Some people feel obligated to do so even if they aren’t close with them, while others think it’s their pleasure to help their parents out of a sticky situation. No matter the place you’re coming from when you lend them money, there are some reasons that you might want to pump the brakes on dishing out cash to your parents every time they’re in need.

<p>Navigating financial dynamics with parents can be difficult. When roles shift, and you become the provider, it disrupts the traditional parent-child structure. This perceived power imbalance triggers resentment as the parental responsibility reverses. Unintended consequences can emerge as your support transforms into an unintentional source of friction. Even though they need it, they feel like you’re doing their job.</p>

1. Perceived Power Imbalance in the Relationship

Navigating financial dynamics with parents can be difficult. When roles shift, and you become the provider, it disrupts the traditional parent-child structure. This perceived power imbalance triggers resentment as the parental responsibility reverses. Unintended consequences can emerge as your support transforms into an unintentional source of friction. Even though they need it, they feel like you’re doing their job.

<p>Assuming the role of the family’s financial backbone inadvertently fosters bad habits. When parents rely heavily on your support, it may cause them to continue down the rabbit hole of poor decision-making when it comes to spending. They could be making awful financial choices, and your safety net becomes a cushion for unchecked habits.</p>

2. Enables Bad Financial Habits

Assuming the role of the family’s financial backbone inadvertently fosters bad habits. When parents rely heavily on your support, it may cause them to continue down the rabbit hole of poor decision-making when it comes to spending. They could be making awful financial choices, and your safety net becomes a cushion for unchecked habits.

<p>I’ll let you in on a little secret today: loneliness is one of the biggest problems nearly everyone faces growing up. You no longer get to interact with your mates daily because life gets hectic, leading to the nagging feeling of being alone. Admitting that you need connections can be daunting and is no easy feat.</p>

3. Jeopardizes Your Own Financial Goals and Security

Constantly lending your parents money could jeopardize your fiscal aspirations and security. That feeling that you have to help them no matter what can turn into a vicious cycle of digging yourself out of debt as time passes. Channeling resources towards them may impede your ability to save, invest, or plan for your future. You may end up sacrificing personal financial stability for immediate family needs, which could bite you if you’re not careful.

<p>If you’ve experienced an unexpected drop in your credit score, you must do your due diligence and determine if any errors have been made. Get copies of your Experian, TransUnion, and Equifax credit reports and go through them thoroughly; many men and women find errors that ultimately cause their unfavorable credit scores. If you find an error, it’s an astonishingly easy fix; contact the reporting agency, and they’ll wipe it off their record.</p>

4. May Damage Your Credit Score

Extending financial assistance to parents carries the risk of damaging your credit score. If their financial struggles lead to missed payments or accumulated debt, it can indirectly impact your creditworthiness. Co-signing loans or being financially intertwined may result in shared responsibility, making it crucial to monitor and mitigate potential credit score repercussions stemming from their financial challenges.

<p>The impact that lending money to your parents all the time can have on your romantic relationship can be detrimental. The strain often arises from conflicting priorities, as the commitment to parental needs competes with shared goals and obligations within a romantic partnership. The division may lead to resentment or misunderstandings, posing a threat to your intimate relationship’s overall harmony and stability if your partner feels like they have no say in how you use shared funds or if they feel like you’re stretching your household thin by helping your parents.</p>

5. Strains Romantic Relationships

The impact that lending money to your parents all the time can have on your romantic relationship can be detrimental. The strain often arises from conflicting priorities, as the commitment to parental needs competes with shared goals and obligations within a romantic partnership. The division may lead to resentment or misunderstandings, posing a threat to your intimate relationship’s overall harmony and stability if your partner feels like they have no say in how you use shared funds or if they feel like you’re stretching your household thin by helping your parents.

<p>When helping out becomes the expected norm, genuine gestures can transform into something you do begrudgingly. If you start feeling like your parents only see a dollar sign when they look at you, it can change how you treat them moving forward and your opinion of them. No one wants to feel like they’re only being used for their money, even if it’s by their parents.</p>

6. Makes You Feel Used

When helping out becomes the expected norm, genuine gestures can transform into something you do begrudgingly. If you start feeling like your parents only see a dollar sign when they look at you, it can change how you treat them moving forward and your opinion of them. No one wants to feel like they’re only being used for their money, even if it’s by their parents.

<p>This unwanted dependency is a little different from bad <a href="https://www.kindafrugal.com/12-reasons-people-are-forced-to-adopt-smart-spending-habits/">spending habits</a> because they make poor decisions with their money, hoping you’ll lend them more. In this case, they barely have any money, and they expect you to pay everything for them until their social security check comes through, their pension, etc. No one wants to be in this situation, though my take on it differs. While I can see its merit to some degree, if my parents are past <a href="https://www.kindafrugal.com/the-ageless-retirement-dilemma-unpacking-the-myth-of-the-perfect-retirement-age/">retirement age</a> and can’t work, I wouldn’t let them struggle if I could help.</p>

7. Unwanted Dependency

This unwanted dependency is a little different from bad spending habits because they make poor decisions with their money, hoping you’ll lend them more. In this case, they barely have any money, and they expect you to pay everything for them until their social security check comes through, their pension, etc. No one wants to be in this situation, though my take on it differs. While I can see its merit to some degree, if my parents are past retirement age and can’t work, I wouldn’t let them struggle if I could help.

<p>A significant amount of emotional stress could be involved in consistently lending money in general. The weight of this responsibility, coupled with the possible strain on relationships and personal well-being, may lead to feelings of anxiety, frustration, or being overwhelmed. On the one hand, they’re your parents, so how can you not help? They’ve taken care of you, so now it’s your turn to give back, right? On the other hand, you have your own life to live, and you could really use that money to reach your goals. Balancing your needs with the demands of supporting others can take a toll on your emotional health, emphasizing the importance of establishing boundaries for your well-being.</p>

8. Causes Emotional Stress

A significant amount of emotional stress could be involved in consistently lending money in general. The weight of this responsibility, coupled with the possible strain on relationships and personal well-being, may lead to feelings of anxiety, frustration, or being overwhelmed. On the one hand, they’re your parents, so how can you not help? They’ve taken care of you, so now it’s your turn to give back, right? On the other hand, you have your own life to live, and you could really use that money to reach your goals. Balancing your needs with the demands of supporting others can take a toll on your emotional health, emphasizing the importance of establishing boundaries for your well-being.

<p>Sometimes, you may have to pause helping your parents, even if it’s just temporary. Are you saving for your wedding, a child, to buy a new house, or anything that requires you to grind to get what you want? Substantial purchases like that may prevent you from being able to lend money as frequently as your parents might want you to.</p>

9. You’re Saving for a Big Purchase

Sometimes, you may have to pause helping your parents, even if it’s just temporary. Are you saving for your wedding, a child, to buy a new house, or anything that requires you to grind to get what you want? Substantial purchases like that may prevent you from being able to lend money as frequently as your parents might want you to.

<p>Among many other odd texting habits, boomers also use ellipses in their messages. Using ellipses occasionally to add suspense is fine, but there is no need to type “…” after every word. It’s one way to keep everyone on their toes.</p>

10. Promotes Financial Literacy

Not giving constant financial help can push them to become more financially literate. When they’re not reliant on your money, they might be motivated to manage their finances better because they don’t have a choice. Of course, this is the ideal outcome and may not be realistic for some. Still, you’d hope your denial to lend encourages them to budget, save, and make wiser financial choices, promoting a sense of independence and improved financial literacy over time.

<p>Is there an inherent connection between “splurging” and “wasting money”? Over 3,000 comments in an online forum suggest a potential correlation, delving into discussions about items considered wasteful expenditures. The curiosity arises: how many of these spending patterns do you feel guilty about partaking in? The insights shared in the forum shed light on the diverse perspectives surrounding the intersection of indulgence and fiscal responsibility, prompting reflection on personal spending habits and financial mindfulness.</p>

17 Money Pits Americans Need to Avoid

Is there an inherent connection between “splurging” and “wasting money”? Over 3,000 comments in an online forum suggest a potential correlation, delving into discussions about items considered wasteful expenditures. The curiosity arises: how many of these spending patterns do you feel guilty about partaking in? The insights shared in the forum shed light on the diverse perspectives surrounding the intersection of indulgence and fiscal responsibility, prompting reflection on personal spending habits and financial mindfulness.

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My Parents Essay

500 Words Essay On My Parents

We entered this world because of our parents. It is our parents who have given us life and we must learn to be pleased with it. I am grateful to my parents for everything they do for me. Through my parents essay, I wish to convey how valuable they are to me and how much I respect and admire them.

My Strength My Parents Essay

My parents are my strength who support me at every stage of life. I cannot imagine my life without them. My parents are like a guiding light who take me to the right path whenever I get lost.

My mother is a homemaker and she is the strongest woman I know. She helps me with my work and feeds me delicious foods . She was a teacher but left the job to take care of her children.

My mother makes many sacrifices for us that we are not even aware of. She always takes care of us and puts us before herself. She never wakes up late. Moreover, she is like a glue that binds us together as a family.

Parents are the strength and support system of their children. They carry with them so many responsibilities yet they never show it. We must be thankful to have parents in our lives as not everyone is lucky to have them.

Get the huge list of more than 500 Essay Topics and Ideas

While my mother is always working at home, my father is the one who works outside. He is a kind human who always helps out my mother whenever he can. He is a loving man who helps out the needy too.

My father is a social person who interacts with our neighbours too. Moreover, he is an expert at maintaining his relationship with our relatives. My father works as a businessman and does a lot of hard work.

Even though he is a busy man, he always finds time for us. We spend our off days going to picnics or dinners. I admire my father for doing so much for us without any complaints.

He is a popular man in society as he is always there to help others. Whoever asks for his help, my father always helps them out. Therefore, he is a well-known man and a loving father whom I look up to.

Conclusion of My Parents Essay

I love both my parents with all my heart. They are kind people who have taught their children to be the same. Moreover, even when they have arguments, they always make up without letting it affect us. I aspire to become like my parents and achieve success in life with their blessings.

FAQ of My Parents Essay

Question 1: Why parents are important in our life?

Answer 1: Parents are the most precious gifts anyone can get. However, as not everyone has them, we must consider ourselves lucky if we do. They are the strength and support system of children and help them out always. Moreover, the parents train the children to overcome challenges and make the best decision for us.

Question 2: What do parents mean to us?

Answer 2: Parents mean different things to different people. To most of us, they are our source of happiness and protection. They are the ones who are the closest to us and understand our needs without having to say them out loud. Similarly, they love us unconditionally for who we are without any ifs and buts.

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People feel financially worse off than their parents—but say their kids will be better off

One indicator many people use to determine how well they're doing in life is to compare themselves with their parents .

After all, your parents' socioeconomic situation can be pretty prescriptive of how you'll fare in life . To do better than them is a common goal for families from a variety of backgrounds.

But these days, not too many people are accomplishing that goal.

The share of people who go on to earn more than their parents has been steadily declining since the 1940s. In fact, just 50% of people born in 1980 have grown up to earn more than their parents, compared with 90% of people born in the 1940s, according to Opportunity Insights research .

It makes sense then that just 36.5% of adults say they feel they're better off financially than their parents, according to CNBC's International Your Money Financial Security Survey conducted by SurveyMonkey . A greater share — 42.8% — say they're worse off than their parents, while the remaining 20.7% say they're faring about the same.

As part of its National Financial Literacy Month efforts, CNBC will be featuring stories throughout the month dedicated to helping people manage, grow and protect their money so they can truly live ambitiously.

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What's more, many adults in their peak earning years were more likely than their older and younger peers to say they're worse off than their parents, the survey found. Here's the share of each age group that says they feel worse off financially than their parents:

Ages 18 to 34: 38.2%
Ages 35 to 65: 49.8%
Ages 65 and up: 32.7%

While every family is different, there are a number of reasons why middle-aged adults feel worse off than their parents, broadly speaking, as well as a few reasons things might not be as bad as they seem.

Some things really are harder for younger generations

Americans in the 35- to 65-year-old range mostly belong to two generations: Gen X (ages 44 to 59) and millennial (ages 28 to 43). A variety of factors have made certain financial milestones statistically harder to reach for those groups than they were for baby boomers and the silent generation, who would likely be their parents.

Here are three ways younger generations are financially worse off than their older counterparts.

1. Wage stagnation

When adjusted for inflation, wages in the U.S. have barely budged since the 1970s. As prices have trickled up with inflation, once-strong salaries have lost a lot of their buying power.

Millennials and Gen Xers today could be making the same salary their parents did at the same age, but their parents' salaries went much further.

2. Unattainable homeownership

The steady rise in home prices has made it seemingly impossible for many would-be owners — especially millennials — to buy homes. U.S. home prices are 24 times higher in 2024 than they were in 1963, according to a recent study by Clever.

Owning a home in and of itself doesn't make you well-off or financially secure. But if your parents owned their home at your age and you can't afford to buy one , despite earning as much money or even more than they did, that could contribute to feeling worse off.

3. High education costs and student debt

Though the younger generations have attended college at higher rates than their parents, they're also paying a much higher price. The cost of attendance for a four-year college has jumped 153% in the last 40 years, according to Bankrate .

As a result, Gen X and millennials hold nearly 87% of the country's student debt balance, with Gen X alone holding 57%, according to the Education Data Initiative . Gen X borrowers also have the highest average loan balance at $44,290.

Things aren't all bad, though

"People like 30-year-olds today are comparing themselves with their parents at 30 and feeling like they're behind," Tara Unverzagt, a certified financial planner and therapist, told CNBC Make It. "And to a certain extent, I'm not sure that's true."

Here are three ways younger generations are doing better than their parents.

1. More education

Gen X went to college at a higher rate than previous generations, followed by millennials becoming the most-educated generation to date. Nearly 40% of millennials have at least a bachelor's degree, compared with just 25% of baby boomers, according to Pew Research .

More education almost always translates to higher incomes, which could help explain why at millennials have more wealth, on average, at ages 33 and 34 than Gen X and baby boomers did at the same age, according to the St. Louis Fed .

2. Better quality of life

Certain products and services we use may be more expensive today, but are often better.

Unverzagt uses buying a car as an example. "Compare the cheapest car you can get today versus the cheapest car you could get 20 years ago," she says. "The cheapest car today is way better."

Technological advancements, safety standards and innovation have made things like communication, transportation, health care and more all better for the general population, Unverzagt says.

3. More equality

Younger generations have navigated adulthood with more freedoms than a lot of their parents may have had.

Today's adults are only a generation or two removed from a time when there were fewer legal protections to help ensure people are treated equally when it comes to their pay, housing opportunities and lending abilities.

Gender and racial pay gaps , along with other barriers to wealth-building, certainly still affect Gen X and millennials. But legislation like the Equal Pay Act of 1963 , the Fair Housing Act of 1968 and the Equal Credit Opportunity Act of 1974 have helped the younger generations avoid some — albeit not all — of the financial hurdles their parents and grandparents may have encountered.

Optimism for the next generation

Despite pessimism about their own situations, 42% of adults overall think their kids will be better off financially than they are, CNBC's survey found. That number drops to 40% among adults ages 35 to 64.

Current parents are even more likely to believe in their children's prospects, with 59% of survey respondents with kids saying their offspring will be better off financially. Just 1 in 5 parents say they think their children will be worse off.

An inheritance could give those children a head start and help them build on their parents' financial success. Over 75% of respondents say they plan to leave their future children money in their will.

Leaving that money behind isn't what matters most, though. Their kid landing a secure job is the most important factor to ensure a better financial outcome, according to 43% of parents surveyed. A fully-funded education was the next-most important (20%), followed by an inheritance (15%).

Want to make extra money outside of your day job? Sign up for CNBC's new online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories. Register today and save 50% with discount code EARLYBIRD.

Plus, sign up for CNBC Make It's newsletter to get tips and tricks for success at work, with money and in life.

How a 32-year-old earning $230,000 a year in Washington, D.C. spends her money

Financial aid for college in chaos amid new FAFSA

The FAFSA form was overhauled at the end of 2023.

At the end of 2023, the federal government said it would update the Free Application for Federal Student Aid form , better known as FAFSA, ahead of the 2024-2025 school year. The change came three years after Congress mandated the update in 2020.

But four months since the changes went into effect, the updated form has brought on more hiccups and some headaches for colleges, administrators and parents.

What is the FAFSA?

The FAFSA is an online form used by schools, colleges and universities -- and sometimes, private scholarship programs -- to determine a student's eligibility to receive federal financial aid, which may include grants, loans, scholarships and work-study program funds. Multiple states also use the FAFSA form to figure out the amount of state financial aid a student can receive as well.

A student needs to file a FAFSA form each school year they wish to receive financial aid.

What changes were made to the FAFSA form?

PHOTO: A group of college students walk on their university campus in a stock image.

The FAFSA previously asked students and their parents hundreds of questions to determine eligibility for federal financial aid, loans and work-study programs.

The revamped form is now simplified to include fewer than 50 questions -- down from more than 100 questions -- adds space to list up to 20 colleges instead of limiting it to 10 schools, and improves access by offering the form in 11 languages instead of only in English and Spanish.

MORE: Overhaul of widely used college financial aid form could make it a 10-minute process

To fill out the FAFSA, students and parents have to consent to allow information from the IRS to be imported into the FAFSA online form .

In addition, the FAFSA now features the Student Aid Index (SAI) in lieu of the Expected Family Contribution. The index will utilize a different formula to determine a student family's qualification for aid, expand the number of students eligible for aid, and not shut out students and families who are not required to file federal income taxes.

MORE: Federal government overhauls college financial aid forms

What problems have students and parents encountered since the fafsa was updated.

Unlike in past years, where students could start filling out the FAFSA in October, access to the new form was delayed until January as the federal government completed the form's update. This, in turn, impacts when students will find out what financial aid packages they can receive for the upcoming school year and ultimately, their decisions on which schools to attend in the fall. The shaky rollout has also pushed multiple colleges and universities to extend their enrollment deadlines.

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Even after students and families were able to submit their FAFSA forms, many reported encountering bugs and technical glitches during the process. Data from the Department of Education shows applications this year are down nearly 60% from past years.

What can parents do?

The Department of Education encourages all students considering college to submit a FAFSA form, even if they don't think they'll be eligible or qualify for financial aid, and to apply for scholarships as early as possible in their high school career.

Parents can use the department's online tools like the College Scorecard and the Federal Student Aid Estimator to get a better idea of future financial costs and the type of financial aid for which a student may qualify.

Parents can also consider college savings plans, some of which are state-sponsored, and other programs that may be available such as prepaid tuition plans.

Can I still fill out a FAFSA form?

The deadline to complete and submit a FAFSA form for the 2024-2025 school year is 11:59 p.m. CT on June 30, 2025. Corrections or updates may be submitted by 11:59 p.m. CT on Sept. 14, 2025. Individual states, colleges and schools have their own deadlines. To see what the deadline is for each state, visit the StudentAid.gov website .

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How to Help Your Financially Struggling Parents
Watching your parents age can be a scary prospect, especially as they approach the point when they need more help from you. If your parents have money troubles, they may come to you for financial help. It can be difficult to help them financially if you're struggling with student loans or credit card debt, or providing for your own family ...
How I learned to make peace with supporting my parents financially
Once, I got a £1,000 award for academic achievements and sent my family a few hundred. When I started my first job, suddenly more was expected of me. My parents barely scraped £20,000 a year ...
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Final Thoughts on My Parents Are Struggling Financially. Helping parents who are struggling financially is a delicate process. You want to help guide them on a path to financial stability, but you also want to respect their autonomy and not overextend yourself. Like most things in life, this will be a journey and a learning process.
Financial Need Scholarship Essay Examples (2023)
Example 2: "Describe your financial need in 100 words". This essay is even shorter than the financial need statement. It may be one of several short answer questions you need to fill out. Working with 100 words is tricky. That only leaves room for about 7-10 sentences, depending on length.
How to Write a Statement of Financial Need
Generally, the statement of financial need will go beyond what is captured by the FAFSA or CSS profile. In this article, we will provide a step-by-step guide to show you how to write a statement of financial need. Apply to these scholarships due soon. $10,000 "No Essay" Scholarship. 1 award worth $10,000.
How to help your parents financially
On average, the young adults who find themselves taking care of mom and dad carry $63,000 of their own personal debt: They owed an average of $40,000 towards their mortgages. They carry an average of $16,000 in student loans. They owe $6,000 in other forms of non-mortgage debt like credit cards.
How to write a financial need scholarship essay (with examples!)
Example 1: "I am a first-generation American and the first in my family to go to college. My family moved from El Salvador to New York when I was seven years old, to escape the violence there.". Example 2: "I am from a working-class family in Minnesota.
I Support My Parents Financially. Can I Have a Say in Their Spending?
The next time someone gives you a gift or pays you a compliment, say: "Thank you! That's so kind.". Then force yourself to stop. Do not spit back a return compliment or make a self ...
How Much Should You Help Your Aging Parents Financially?
3. Be honest with yourself about your willingness to help . Old hurts, past resentments and unresolved disputes can get in the way of good planning. It may be time to work things out so that your ...
Parents Are Struggling to Provide for Their Families during the
More than 4 in 10 parents reported that they or someone in their family lost work or work-related income because of the coronavirus outbreak. This proportion rises to about 5 in 10 for non-Hispanic black parents and low-income parents and to more than 6 in 10 for Hispanic parents. Low-income parents were less likely to be able to work from home ...
How to Become Financially Independent From Your Parents
2. Analyze Your Spending and Create a Budget. Becoming financially independent from your parents means paying for your own bills, including your cellphone or internet services, car insurance, and ...
What to Do If Your Parents Need Financial Help
A 2015 survey by TD Ameritrade found 13% of American adults provided financial support to a parent. Millennials were far more likely than older generations to report they were helping their folks. Of people born between 1981 and 1996, 19% helped support their parents, compared with 13% of Gen Xers (1965 to 1980) and 8% of baby boomers (1946 to ...
Tips for Dealing With Financially Dependent Parents
Next Steps. Take an honest look at your parents' financial situation and how it's affecting your own. If you're not comfortable doing this alone or you need some more guidance on next steps, you can always do this sit-down with a financial advisor. A matching tool like SmartAsset's SmartAdvisor can help you find a person to work with to ...
What to Do If Your Parents Need Financial Help
You also can let them know how much help you can afford to provide. Rope in your siblings, if you have them. Even if they can't contribute financially, they may be able to help in other ways ...
How can I take back control of my life when my parents support me
I am a woman in my early 20s, an international student, in the first year of a five-year medical degree.. I'm completely financially dependent on my parents. I can't apply for student loans ...
When Your Parents Need Financial Help
You won't be alone. According to a 2019 study by the Transamerica Center for Retirement Studies, 8% of Gen Xers and 3% of boomers say supporting their parents is a current financial priority. If ...
What to Do if Your Parents Make Too Much for Financial Aid
Raise money through crowdfunding. Get a part-time job. Use tuition reimbursement if your employer offers it. While these options alone will not totally cover your college costs, combining several sources can cover your educational expenses. If you're working on how to get financial aid for college when your parents make too much money, you ...
8 Ways to Help Family Members in Financial Trouble
2. Make a Personal Loan. Your family member may approach you and ask for a short-term loan. Talk frankly, put the terms of the loan on paper, and have both parties sign. This will help ensure that ...
How to Manage When Your Parents Need Financial Help From You
Develop a financial plan. While you might not be the right person for the job, you can give your parents the tools they need to get and stay on the right track. Help them find a financial planner and, if necessary, an estate planner or eldercare financial planner. Getting the right team in order and setting up a long-term life plan could mean ...
Essay: Money Lessons From Parent
4 money lessons I'm teaching my daughter from my own financial disasters . I don't want these mistakes to be passed down. ... I'd do it someday, I thought. I was 30 when I sat in my bank's branch and asked for help. They consolidated my debt—with fees and interest, of course, and I had a regular payment that would come out of my account ...
Financial Need Essay: Examples & Writing Guide
1. Write an impressive motivation letter mentioning your tight budget, 2. Write an application letter describing your tough life circumstances (especially if you have incomplete family, etc.). For additional details, check examples of such papers online and in books.
Why I Stopped Lending Money to My Parents (And You Should Too)
Depending on the type of relationship you have, it can be tough to see your parents struggling financially and do nothing when you have the funds to help. Some people feel obligated to do so even ...
My Parents Essay for Students and Children
Answer 1: Parents are the most precious gifts anyone can get. However, as not everyone has them, we must consider ourselves lucky if we do. They are the strength and support system of children and help them out always. Moreover, the parents train the children to overcome challenges and make the best decision for us.
Survey: Adults say they're doing worse financially than their parents
An inheritance could give those children a head start and help them build on their parents' financial success. Over 75% of respondents say they plan to leave their future children money in their will.
Financial aid for college in chaos amid new FAFSA
The FAFSA form was overhauled at the end of 2023. At the end of 2023, the federal government said it would update the Free Application for Federal Student Aid form, better known as FAFSA, ahead of ...

How to Help Your Financially Struggling Parents

Evaluate the Financial Help Your Parents Need

Make a Budget

Set Aside Money Now

Make a Long-Term Plan

Can I help my parents through Medicaid spenddown?

How many adult children support or assist their parents financially?

My Parents Are Struggling Financially: 8 Strategies to Support Aging Parents

How to Help Parents Who Are Struggling Financially

Normalize Open and Honest Dialogue

Help Construct a Budget

Consolidate and Simplify Accounts

Investigate Government Benefits

Examine Insurance Plans

Consider a Housing Change

Evaluate Food Options

Establish Limits

Final Thoughts on My Parents Are Struggling Financially

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Financial Need Scholarship Essay Examples (2023)

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How to write financial need scholarship essays

The fastest path to earning scholarships

Example 1: “Provide a statement of financial need”

Example 2: “Describe your financial need in 100 words”

Example 3: “Explain your financial need in 500 or more words”

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How to Write a Statement of Financial Need

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What to include in your statement

What to avoid in your statement

Create an outline

Finish with a strong conclusion

Formatting your essay with body paragraphs

Submitting your statement of financial need is not a guarantee of more aid

Key Takeaways

Frequently asked questions about how to write a statement of financial need

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How to help your parents financially — without going broke

Can you dictate how your parents spend the money you give them?

Should your siblings have to chip in, even if your parents only asked you?

Should you make a plan for repayment, even if it’s unlikely?

Your money deserves more than a soundbyte.

How to write a financial need statement for your scholarship application (with examples!)

What to include in a financial need scholarship essay

I Support My Parents Financially. Can I Have a Say in Their Spending?

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What to Do If Your Parents Need Financial Help

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