How much money should you give a 21 year old?

Answered by Robert Dupre

When it comes to giving money to a 21-year-old, there are a few factors to consider. Firstly, it’s important to assess the financial independence and responsibility of the individual in question. While some 21-year-olds may be financially self-sufficient and capable of managing their own finances, others may still be dependent on their parents or have limited financial literacy.

If you are considering giving money to a 21-year-old, it could be helpful to have a conversation with them about their financial goals and responsibilities. This will allow you to better understand their needs and make more informed decisions about the amount of money you give.

One approach could be to consider the purpose of the money. Is it meant to be a gift, to help cover specific expenses, or to support their long-term financial goals? If it’s a gift, the amount you give may depend on your own financial situation and your relationship with the individual. It’s important to give within your means and not jeopardize your own financial security.

If the money is intended to cover specific expenses, such as education or starting a business, it would be helpful to discuss the estimated costs and consider how much you can comfortably contribute. In such cases, it may be beneficial to set clear expectations and establish a plan for how the money will be used.

Alternatively, if the goal is to support the individual’s long-term financial well-being, it could be beneficial to introduce them to the concept of saving and investing. Encouraging them to save a portion of their income and providing guidance on how to manage their finances can be more valuable in the long run.

By teaching them about budgeting, saving, and investing, you can empower them to take control of their own financial future. Providing resources such as books or online courses on personal finance can also be helpful.

Ultimately, the amount of money you give to a 21-year-old will depend on various factors, including their financial situation, goals, and your own circumstances. It’s important to communicate openly, set clear expectations, and consider the long-term impact of your financial support.