Bank of Mom and Dad Shuts Amid White-Collar Struggle
Source: Bank of Mom and Dad Shuts Amid White-Collar Struggle
Author: Mary Pilon
We are aware of the challenges that the economy has had on parent workers. But what are the effects of the economy on the upcoming generation? Is it possible to measure the impact and the toll it is taking on future generations?
What may have started as a concern for the initial challenge of the parent being laid off, there may be an even greater concern for the effects it is having on the children of parents.
In her article, Bank of Mom and Dad Shuts Down Amid White Collar Struggles, author Mary Pilon highlights the challenges not only faced by American families but even more so by the children who no longer have parental financial support for large life expenses such as college education, vehicles, first houses, large weddings or career start-ups. Financial assistance or co-signing on loans have both been a vital financial resource in the past for adult children–but no longer, according to the article.
The author brings to light some of the very real struggles and decisions faced by many Americas who have been laid off. They are not so worried about their own financial situation as much as they are for the impact it will have on their children and their childrenâ€™s future.
The author points out that in the past, parents have been he means of assisting their children with college degrees, down payments and even investing in their start up careers in order to give them a jump-start for a better life than they (parents) had. However, that may no longer be the vision. The new realistic goal according to the articles may now be to help children have it as good as the current parentsâ€™ situation.
The challenges for young adults don’t end there. With parents unable to assist financially or co-sign on loans, banks are unwilling to lend to young adults without the proof of income. Therefore, the younger generation may be less likely to own homes, seek entrepreneur start-up career paths and even possibly delay raising families.
There is, however, a silver lining to the economic challenges affecting children and young adults. The article predicts that these challenges may mold young adults and youth into a generation that becomes expert problem-solvers and ultimately becoming financially resilient, creative, frugal and economically savvy â€”much like or more so than the Baby Boomer generation after the Depression.