Suze Orman Warns of Financial Risks When Kids Move Back Home. She Calls One Financial Choice the Opposite of Being a Good Parent

Adrian Volenik

Sat, August 1, 2026 at 11:00 PM GMT+3 6 min read

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

With housing costs still putting pressure on young adults, many parents are opening their doors to children who need a place to stay. For some families, it's a practical way to save on rent or build a down payment. But personal finance expert Suze Orman says there is one mistake parents should avoid at all costs.

Writing on her website, Orman warned that while helping adult children is understandable, sacrificing your own retirement savings to do it is the opposite of responsible parenting.

Don't Miss:

AI Robots Have Already Fried More Than 5 Million Baskets Of Food. Everyday Investors Can Still Buy Into The Company Behind Them.
Small differences in withdrawal and tax strategy can significantly impact long-term retirement income — see where you stand today.

Helping Today Shouldn't Create Problems Tomorrow

According to a recent Thrivent survey cited by Orman, 44% of parents with children between the ages of 18 and 35 have had an adult child move back home. About half said the move was driven by financial necessity, while others said it was a way for their children to save money before buying a home.

The survey also found that more than 40% of parents are willing to reduce their own spending to help their children, while nearly 20% said they would cut back on retirement contributions.

Orman said reducing discretionary spending is one thing, but touching retirement savings is a completely different matter.

"If you want to scale back your spending on 'wants' to help an adult child, that is fine," she wrote. "But don't you dare stop saving for retirement. That is the opposite of being a good parent."

She explained that every dollar taken away from retirement savings does more damage than many people realize because it also loses years of potential compound growth.

"It's not just a dollar you won't have for retirement, it is all the compounded growth of that dollar you lose out on," Orman wrote.

For families already struggling to cover everyday expenses, finding extra income can be just as important as cutting costs. Millions of Americans can't afford a $1,000 emergency expense, making unexpected bills especially difficult to manage. Some are turning to side hustles, with companies such as Mode Mobile that are creating new ways to earn money from everyday smartphone use.

Its $99 EarnPhone rewards users for activities like reading the news, listening to music and playing games. Instead of looking for a side hustle yourself, invest in the company creating those opportunities. Mode Mobile is currently raising capital, and investors can buy a stake in the business. Invest today from $1,000 for just $0.52 a share.

Your Retirement Can Affect Your Children Too

Orman said many parents focus only on helping their children today without thinking about what happens years down the road.

She asked readers to picture their child grown up with a job and a family of their own, while they're heading into retirement and worrying about whether their money will be enough.

"That's not just stress on you, it's stress for your adult child(ren)," she wrote.

Instead, Orman encourages parents to think long term before making financial decisions.

"Always ask yourself: 'If I do X today, will it help or hurt my financial security 5 years, 10 years, 20 years from now?'"

Her message is that staying financially independent later in life may be one of the greatest gifts parents can give their children. While helping an adult child through a difficult period is often the right thing to do, she believes protecting your retirement ultimately protects your family as well.

Building Wealth Across More Than Just the Market

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.

Arrived

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors canbuy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

Realberry

Institutional-quality real estate has traditionally been difficult for individual investors to access.Realberry gives accredited investors direct access to private real estate opportunities backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests.

FarmTogether

Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors,FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.

Immersed

Immersed is building technology for the future of work through spatial computing. Known for its AR/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing.

Fundrise

Private real estate and private credit can add income and stability to a stock-heavy portfolio.Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.

Mode Mobile

Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day. Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte's fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.

EquityMultiple

For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.

Image: Shutterstock

This article Suze Orman Warns of Financial Risks When Kids Move Back Home. She Calls One Financial Choice the Opposite of Being a Good Parent originally appeared on Benzinga.com

Suze Orman Warns of Financial Risks When Kids Move Back Home. She Calls One Financial Choice the Opposite of Being a Good Parent

Helping Today Shouldn't Create Problems Tomorrow

Your Retirement Can Affect Your Children Too

Building Wealth Across More Than Just the Market

Yorumlar (0)