Putting your own future at risk
As Annie is trying to support her family, she’s putting her own financial future at risk. By maxing out credit cards and taking on loans, she’s putting her ability to manage her own obligations — including the cost of her education — at stake.
According to the Education Data Initiative, the average cost for in-state tuition is $9,750, while out-of-state tuition is an average of $27,457. If you factor in the average balance for student loan debt of $38,787, based on data from Experian, it’s clear that Annie’s situation is financially overwhelming.
Some Redditers, recognizing the long-term implications, encourage Annie to prioritize her future.
“You need to realize one thing: your college tuition and YOUR bills come first. DO NOT TAKE OUT A LOAN FOR YOUR MOTHER. Mom decided to have several kids and she has to support herself because she's an adult,” ElmLane62 said.
Successfully managing your finances often means helping yourself before you can help others – and it’s not selfish. Taking on high-interest debt for a loved one can set you back years, especially when you’re on a student budget or starting out with an entry-level salary.
If Annie dreams of goals like homeownership or a secure retirement, her current decisions might delay or even jeopardize them. While her support for her family may feel necessary now, it could come at a steep cost.
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Learn MoreWhat can Annie do?
Annie is at a crossroads where setting firm financial boundaries could make all the difference in securing her future. While she wants to help her family, prioritizing her own financial responsibilities may have to come first to avoid ongoing debt and stress.
Angela Sitka, a licensed marriage and family therapist, shared some perspective in Time Magazine that could resonate with those in Annie’s situation: “It’s really speaking up for yourself in a way where you’re taking responsibility for your own feelings and actions, but you're also clearly communicating what you want from the other person.”
It may be easier said than done, but a 2023 Federal Reserve report based on 2022 data highlights how the pressure to support others can also mean compromising personal stability. According to the report, 33% of young adults aged 22 to 24 still live with their parents to provide financial support, yet nearly 40% of all adults couldn’t cover a $400 emergency expense with cash savings.
Those who happen to fall under both categories may be in rough financial shape. But the good news is, by setting firm boundaries, Annie and others in her position can regain control over their financial health and build the stability they need to one day support their loved ones with ease.
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