Suze Orman Has 1 Rule About Giving Money to Your Kids — And Most Retirees Break It

Financial advice personality Suze Orman has a clear rule about giving money to your children: do not do it until your own retirement is completely secure. Orman has consistently emphasized that parents must prioritize their own financial stability before gifting to children, advice that can be emotionally difficult for many families to follow.

The logic is straightforward. Your children can borrow for college, cars, or homes. You cannot borrow for retirement. Yet many parents feel pressure to help adult children financially, sometimes underestimating their own long-term needs in the process.

Where Orman’s Advice Holds Up

Orman is right that running out of money in retirement can be financially and emotionally devastating. Unlike your children, you do not have decades of earning power ahead to rebuild savings. Retirement income typically comes from a fixed combination of Social Security, pensions if available, and withdrawals from savings.

Inflation compounds the risk. With inflation running in roughly the 2% to 3% range in early 2026, purchasing power steadily erodes over time. Even modest inflation can significantly reduce what a fixed retirement income can cover over a 20- or 30-year retirement. Money given away today is money that no longer compounds or provides a buffer against rising healthcare costs, market volatility, or unexpected expenses.

Retirees must also account for the “Volatility Risk Premium” and sequence of returns risk. Withdrawing or gifting assets during high-volatility periods, as seen in early 2026, can be mathematically perilous because it locks in paper losses that cannot be recovered through future compounding. This makes protecting retirement assets even more important for those without substantial margin for error.

Where the Advice Needs Context

Orman’s framework is intentionally strict: secure yourself first, then consider helping others. But what qualifies as “secure” depends on individual circumstances and recent legislative shifts. The SECURE 2.0 Act has introduced critical changes for 2026, including higher catch-up contribution limits for those aged 60–63 and new pathways for tax-advantaged wealth transfers, such as 529-to-Roth IRA rollovers.

There are also strategic ways to give without undermining security. In the current labor market, where AI is rapidly shifting the value of traditional entry-level roles, parents might consider supporting alternative certifications or skills rather than assuming a child should simply “borrow for college.” The key is that giving should come from excess capacity, not from funds required to maintain your own lifestyle.

How Retirees Should Think About This

Before giving money to children, ask yourself a simple question: Can I afford to never see this money again? If the answer is no, it is likely too soon to give.

Run realistic projections for expenses, healthcare costs, taxes, and longevity. Consider market volatility and the possibility of living into your 90s. If you have assets clearly beyond what you are likely to need, giving becomes a choice rather than a financial sacrifice. Protecting your own financial independence first ensures that generosity does not later turn into dependence.

Editor’s Note: This article has been updated for May 2026 to include technical analysis regarding sequence of returns risk and market volatility. The revision also incorporates regulatory updates from the SECURE 2.0 Act and a modernized perspective on the risk of student debt in an AI-influenced labor market.