Money issues have a way of sneaking up on people. A lot of parents think that they’ll deal with it later or simply let the kids decide for them instead. That’s a bad idea. Here are eleven financial decisions that parents regret leaving to their children, according to the people who answered our survey. Which of these would you never want your kids to lead?
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Letting a child pick the contractor for major home repairs
A new roof or foundation fix isn’t like ordering takeout, as you can’t simply pick the cheapest option. One parent said that their kid went straight for the lowest bid without checking licenses or warranty fine print. It was only later that the parent found the extra charges on the bill & repairs that weren’t up to code.
Deferring an HOA dispute to a child
HOAs don’t mess around with deadlines & their letters are filled with legalese. As such, a few parents said they deferred the issue to their children to deal with, only for them to send a casual email back to the HOA. Then the parents discovered fines piling up because the reply didn’t meet formal notice rules.
Relying on a child to refinance an auto loan online
Sure, refinancing online may reduce monthly payments, but it can be rather complicated. That’s why some parents told us they let their children do it. But then, their loan stretched years longer with add-ons, as their children didn’t notice the precomputed interest & surprise fees for early payoff on this “better” deal.
Assigning a child to shop the family’s cell plan
Carrier promos are designed to look flashy. But it’s the small print that bites back, which one parent said their kid didn’t see. They chased the newest phone deal. They didn’t realize the credits run for 36 months & disappear if you switch carriers early, so the parents were stuck with installment balances and restocking fees on multiple devices.
Leaving car insurance changes to a teen or college student
A few parents said they allowed their younger children to make mid-term changes to their car insurance policy. However, they often lost bundled discounts or received lower liability limits below lender requirements by doing so. This triggered forced coverage at a higher premium.
Outsourcing the choice of a financial advisor
An advisor who seems friendly may still sell products with hidden fees or long surrender periods. But a few parents said their children would rather let a financial advisor handle everything for them than do it themselves. That’s not to say you shouldn’t speak to an expert. But you should be mindful of everything they say & also do your own research.
Choosing a continuing care community contract
Despite what many younger people think, contracts for retirement communities aren’t like apartment leases. Entrance fees may be six figures and include refund schedules spelled out in clauses. Sadly, one parent who allowed their kid to sign the paperwork found this out too late. They had little room to renegotiate & those terms followed them for years.
Handling caregiver payments through payment apps
That’s not all for caregivers. One parent said they asked their child to cover caregiver pay, and then they put it through Venmo or Zelle because it’s quick. But they ignored the payroll side, like W-4s & timesheets, as well as tax reporting, causing problems with the IRS. This lack of proper records meant the parent couldn’t prove expenses for insurance claims & owed back taxes.
Switching every bill to paperless & auto-pay
Most young people love doing everything online. As such, they’ll tie the bills to their email & phone, which sounds efficient, unless you’re one of the parents who couldn’t reset their password or see late notices. The renewal reminders disappeared into an inbox they weren’t able to check & even fraud alerts stalled because the codes went to the wrong device.
Opening app-only savings or crypto accounts on a parent’s behalf
One parent said their kid saw a flashy finance app promising better rates & convinced them they’d set up an account for them. However, joint ownership & power of attorney weren’t included. When something went wrong, the only customer service was in-app. They also had withdrawal holds & confusing tax forms. This stopped them from accessing their money.
Transferring a parent’s car title or registration across states
Unfortunately, a few parents had problems with their children assuming switching titles or plates is as simple as filling out a form. It’s not. Some states include taxes & inspection requirements, perhaps even plate-return rules, and the insurance premiums change, too. Really, it’s much too complicated, and one parent regretted ever letting their kids make this change for them.