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.

The broader financial environment reinforces Orman’s caution. In recent years, the U.S. personal saving rate has remained below long-term historical averages, indicating many households are not building large financial cushions. That makes protecting retirement assets even more important for those without substantial margin for error.

This advice is especially relevant for middle-income retirees whose savings must generate dependable income for decades. If your retirement accounts are not comfortably covering projected expenses, giving money away could create future vulnerability.

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.

Some retirees have reliable income floors from Social Security, pensions, and paid-off homes. Others may have substantial investment portfolios that exceed their projected lifetime needs. In those situations, modest financial gifts may not jeopardize long-term stability.

There are also strategic ways to give without undermining security, such as funding a grandchild’s 529 plan with a defined amount or helping with a down payment only after stress-testing your retirement projections. 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.

Suze Orman’s rule may sound rigid, but it is designed to prevent a common and irreversible mistake. Protecting your own financial independence first ensures that generosity does not later turn into dependence.