Forty-five percent of parents are helping their adult children financially

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FILE- This Sept. 6, 2017, file photo shows a tip jar with one dollar and five dollar bills and a penny in New York. (AP Photo/Mark Lennihan, File) Mark Lennihan/AP

Forty-five percent of parents are helping their adult children financially

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Being an adult is expensive — so expensive that some parents are helping their adult children financially even after they are living on their own.

Fifty-one percent of parents financially support at least one of their adult children. That total includes parents whose children may have a disability, and the number goes down to 45% when counting parents without disabled children. The largest age groups receiving financial support from their parents are people between the ages of 20 and 24, at 52%. They’re followed by those between 25 and 29 at 17%, according to the study by Savings.

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Among parents who provide financial support to their grown-up children, the average monthly total is over $1,400. School expenses like tuition and rent or mortgage were the biggest areas in which parents help their children.

The average contribution parents make to their children for student loans every month is $245, according to the study. Twenty-three percent of parents of Generation Z children are helping their children pay their student loans, and 18% of parents of millennial children are helping with student loans.

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The parents involved in this study were also asked what they would do to support their child financially, with 58% saying they would live a more frugal lifestyle, 44% saying they would pull money from their savings or retirement account, 33% saying they would retire later, 25% saying they would take on debt, 16% saying they would come out of retirement, and 10% saying they would refinance their home. Nineteen percent said they would do none of the above.

The study interviewed 1,000 parents of adult children in the United States. The survey was conducted online in February 2023.

© 2023 Washington Examiner

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