Adult children who are still dependent on their parents are becoming a significant drain on their parent’s finances, according to a recent poll by Canadian Imperial Bank of Commerce (CIBC).

Two-thirds of parents providing financial support to children 18 years and older say providing this support is having a significant impact on their finances. Slightly less than half (47%) of the parents surveyed say helping their children has interrupted their own savings plans; and 20% say they have delayed retirement as a result of their children.

Most of this money is going toward providing free room and board (71%), but parents also are helping with groceries (47%), cellphone bills (35%) and even car payments (23%). The majority of parents surveyed are being squeezed for $100 to $499 a month, the poll says. One in four, however, say these expenses add up to more than $500 a month.

Financial advisors can play a key role in assisting clients with this burden, says Jamie Golombek, managing director, tax and estate planning, with CIBC’s Wealth Advisory Services division in Toronto. “If [parents] are going to help their children,” he says, “we want to make sure they can afford to do so in a way that doesn’t compromise their own retirement plan.”

Here are three ways you can help clients with adult children:

1. Start early
Encourage your clients to begin discussing money and budgeting with their children while they’re still young, so they grow up with a realistic understanding of the cost of financial independence.

Financial advisors should be encouraging or facilitating conversations among family members, Golombek adds. For example, parents should instil in their children a knowledge of the difference between “wants” and “needs.”

2. Invite adult children to meetings
Another strategy is to invite the dependent adult child to a client meeting with his or her parents. Assure the parents ahead of time that you will not reveal details of the parents’ salaries or the size of the portfolio. You can use this meeting as an opportunity to discuss the financial impact the child’s expenses are placing on your clients.

Says Golombek: “I’m not sure all kids have an appreciation for how [asking for money] is affecting their parents.”

3. Host a seminar
One effective strategy for educating adult children is to invite them to a seminar — without their parents. This way, you can have a frank discussion about money, Golombek says, while also providing education, guidance and support.

The added benefit is that you can start building a relationship with your clients’ children. They will likely inherit their parent’s assets, so you should use the opportunity to get them onboard with financial planning — and your practice — early on.