I’m 62 years old and regret not teaching my two kids about money. They both have good jobs but still struggle to make ends meet — how can they catch up and how can I help?

Her grown children are not alone. Even some Americans earning six-figure salaries are struggling to pay their bills, according to a survey by the Federal Reserve Bank of Philadelphia. The survey pointed out that younger Americans are more likely to be struggling, with 41% of those aged 18 to 35 saying they’re concerned about their ability to pay the bills compared to 22% of those over 65.

Younger Americans, particularly those aged 22 to 24, tend to have higher credit card debt and delinquency rates across various credit products — including student loans and mortgages — compared to millennials at the same age, according to a TransUnion study. They’re also faced with a softening job market, rising housing costs, more expensive child care and college tuition. These challenges have led about a third of young adults (aged 18 to 34) to continue to live at home with their parents, according to the Pew Research Center.

What is financial literacy?

Janice isn’t alone in her concerns. However, stepping in to rescue her kids financially — by giving them money or paying their bills — could backfire, making them more financially dependent. So, how can Janice help without putting herself in a financial hole? The key is education, not quick fixes.

Financial literacy means understanding key concepts like saving, investing, building credit, paying off debt and planning for retirement — and applying that knowledge to manage their money more effectively. Without this foundation, young adults may struggle when they strike out on their own.

According to a Bankrate study, one in four Gen Zers and millennials say their parents didn’t teach them how to build financial wealth. Janice, now 62 and on the younger end of the baby boomer generation, grew up in a different economic era. For example, a college education no longer guarantees a good job, and today’s graduates face historically higher levels of debt — even after adjusting for inflation. These generational differences can complicate efforts by older generations to provide financial advice.

Still, Janice can help her kids develop better money habits, such as incremental budgeting or the 50/30/20 rule that balances essentials, entertainment and savings. There are also plenty of money management apps available that could help her kids track expenses, gain clarity into their spending habits and manage their money more effectively.

How to help adult kids build financial independence

While Janice could provide her adult children with financial support, that could eat into her retirement savings. If she does decide to give one of her kids financial assistance, she should ensure guardrails are in place, such as setting up a payment plan and there should be specific terms and conditions.

“It’s essential to establish clear boundaries regarding how much financial support you’re willing to provide,” said Jeffrey Bernstein Ph.D., a parenting coach and psychologist, in Psychology Today. “Without boundaries, the risk of becoming your child’s economic safety net is high, which can foster dependence instead of resilience,”

He also recommended promoting accountability. For example, if Janice helps pay their rent, she should review her child’s budget to ensure they’re mindful of their expenses.

Rather than giving them money, Janice could guide her kids toward options like debt consolidation, loan refinancing or negotiating with creditors. She could also help them reassess their finances annually until they’re comfortable managing on their own. If debt management feels overwhelming — or her children don’t want to listen to mom’s advice — she could even connect them with a credit counsellor.

If Janice has already been providing financial assistance and her adult children have come to expect it, transitioning to the role of “money coach” may be necessary. This may be a difficult transition at first, but it’s an important step in fostering financial independence.