Financial advisor offers tips for preparing adult children for independence

MILWAUKEE (CBS 58) -- Amid economic uncertainty and high living costs, 48% of young adults continue to reside with their parents.

Local financial professional Brad Allen from Drake & Associates joined us on Tuesday, Sept. 26 to discuss aiding adult children in their move toward financial independence.

Allen stressed the importance of parents and their adult children mutually respecting financial boundaries to prevent harm to parents' financial standing.

To aid in financial independence, Allen recommended adult children focus on debt elimination strategies, such as the avalanche or snowball methods and prioritizing saving by contributing to retirement accounts like a 401(k) or Roth IRA.

For parents, Allen noted that setting clear expectations concerning expenses and move-out dates can balance their financial needs against those of their children.