We have received many calls the past couple weeks about client’s children/nieces/nephews being impacted by the recession. As Amy Ellen, my own daughter, has been out of work for several months, here is advice I gave her:
- Unemployment: Even if they are self-employed, there are new provisions allowing most working Americans access to unemployment benefits. Their website and phones are overloaded so offer to look over their application to ensure they have completed it properly.
- Job search: There are jobs out there. They are not glamorous but most of us have stepped down a notch or two during our careers. Some jobs will not be coming back. Having a career option, either short or long term will be key.
- Expenses: Like many millennials (and baby boomers), my daughter spends as much as she makes. It worked fine until now. Just like we baby boomers are, its time to list their income and expenses and scrub the expenses to see which items are not essential. This is not a fun process, but again most adults have gone through this. If restaurant expenses are part of the problem, consider buying them a cookbook.
- Loans: Many of our children will be forced to take on debt until they are re-employed. Options are:
- Home Equity: Today’s interest rates are low. If they own a home, they might be able to access funds at a low rate
- 401k/IRA: There are new provisions allowing greater access to 401k and IRA funds. They will have to call their HR/benefits person to see if they are allowed on their plan. Again, not an ideal option, but something to consider.
- Payment Deferrals: Many renters, student loans and car financing companies are allowing deferral of payments. Not an ideal method but an option to be considered.
- Listen: More than anything, our kids need a strong shoulder right now. Remind them of their strengths and that America will survive.