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Survey reveals nearly half of US parents support adult kids financially
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A recent study from Savings.com found that nearly half of American parents (47%) are providing financial assistance to their adult children, emphasizing economic challenges faced by younger generations. According to the study, rising costs of living, including increased expenses for food and housing, have led many young adults to rely on parental support for their day-to-day expenses.
The study reveals that parents are allocating approximately 2.4 times more funds to support their adult children than they are investing in their own retirement accounts.
On average, these adult children are around 22 years old. Despite the expectation that adult children should become financially independent by age 25, the reality is that many continue to rely on parental support well beyond that age.
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Approximately 21% of parents are assisting millennials and members of Generation X with monthly financial support ranging between $907 and $960.
For Generation Z adults, aged 18-27, the average monthly support is even higher at about $1,515, particularly for covering college-related expenses.
Across all age groups, parents are shouldering the financial burden for essentials such as groceries, rent, mortgage payments, tuition, and health insurance. However, as living costs continue to rise, more adults are either opting or being compelled to reside with their parents.
A recent Harris poll found that 61% of American renters across all age brackets express concerns about their prospects of ever owning a home due to the escalating costs associated with homeownership. Younger generations face additional financial hurdles, including higher levels of student loan debt and lower wages, further exacerbating their financial predicaments.
[LAUREN TAYLOR]
A RECENT STUDY CONDUCTED BY SAVINGS.COM REVEALS — NEARLY HALF OF U.S. PARENTS ARE PROVIDING FINANCIAL SUPPORT TO THEIR ADULT CHILDREN. ACCORDING TO THE STUDY, YOUNG ADULTS ARE GRAPPLING WITH HIGHER FOOD AND LIVING COSTS COMPARED TO PREVIOUS GENERATIONS — FORCING MANY TO RELY ON PARENTAL SUPPORT FOR LIVING EXPENSES.
THE AVERAGE AGE OF ADULTS RECEIVING FINANCIAL ASSISTANCE FROM THEIR PARENTS IS 22, WITH MANY PARENTS RISKING THEIR OWN RETIREMENT SAVINGS, CONTRIBUTING 2.4 TIMES MORE TO ADULT CHILDREN THAN TO THEIR RETIREMENT ACCOUNTS.
DESPITE THE EXPECTATION THAT ADULT CHILDREN SHOULD BECOME FINANCIALLY INDEPENDENT BY AGE 25, THE REALITY IS THAT MANY CONTINUE TO RELY ON PARENTAL SUPPORT WELL BEYOND THAT AGE, CITING HIGHER LIVING COSTS.
THE STUDY FOUND THAT 21% OF PARENTS ARE HELPING MILLENNIALS AND MEMBERS OF GEN-X WITH FINANCIAL ASSISTANCE AVERAGING BETWEEN $907 AND $960 PER MONTH.
GEN Z ADULTS, AGED 18 TO 27, RECEIVE EVEN MORE SUPPORT, AVERAGING ABOUT $1,515 MONTHLY, PARTICULARLY FOR EXPENSES LIKE COLLEGE AND UNIVERSITY FEES.
COMMON EXPENSES COVERED BY PARENTS ACROSS GENERATIONS INCLUDE GROCERIES, FOOD, CELL PHONE BILLS, RENT, MORTGAGES, TUITION AND HEALTH INSURANCE.
HOWEVER, WITH SOARING COSTS OF LIVING, MORE ADULTS ARE EITHER CHOOSING OR BEING FORCED TO LIVE WITH THEIR PARENTS.
A RECENT HARRIS POLL SURVEY REPORTED THAT 61% OF U.S. RENTERS FROM ALL AGE GROUPS ARE WORRIED THEY MAY NEVER BE ABLE TO OWN A HOME DUE TO UNAFFORDABLE HOUSING.
YOUNGER GENERATIONS ALSO FACE HIGHER STUDENT LOAN DEBT AND LOWER WAGES, FURTHER COMPLICATING THEIR FINANCIAL SITUATIONS.
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