Should parents let their kids live on the street?

In a very interesting article penned by Emily Fredrix of the AP titled, Parents Offer Refuge to Older Adults, Fredrix talks about a new phenomenon of adults moving back in with their parents. "Taking shelter with parents isn't uncommon for young people in their 20s, especially when the job market is poor. But now the slumping economy and the credit crunch are forcing some children to do so later in life - even in middle age. "

Many financial planners that I know are of the belief that parents shouldn't jeopardize their financial independence in order to help out their adult children. They are of the belief that if the children are in their 40s or 50s, they should wipe their hands clean of providing support.

My question is, what is family for? Should parents be sailing on a cruise to some exotic island when their responsible son just lost his job and is in a financially tough spot? Dying and getting buried with lots of money doesn't really help. Isn't the point of having money, aside for trying to provide a comfortable lifestyle, to try and help out those less fortunate? Wouldn't a struggling daughter fit that bill?

If parents are themselves stretched financially, they don't have to actually shell out money for the child. Rather, they can provide a roof and help that way, allowing the child to save hundreds of dollars a month.

I have worked with parents in similar situations. I have found that for both parents and the children who have moved back in, they find that their relationship has grown much stronger as a result.

Neither parents nor children view moving back home as a desirable outcome, but if left with no choice, would you actually refuse to support your child?

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 3/24/08.