According to a new study, nearly half of parents with children over the age of 18 provide them at least some financial support. Supporting adult children, however, can be a significant financial burden for parents during a period when their own retirement security is in jeopardy.
Many contend that young adults today have a harder time making it on their own.
Rising food and housing expenses are not the only financial obstacles that millennials and Generation Z must deal with—their parents did not experience these at the same time. According to recent statistics, not only are their incomes lower after accounting for inflation than their parents’ earnings were in their 20s and 30s, but they also have higher outstanding student loan loads.
Parents are therefore intervening to assist. According to Savings.com research, 47% of parents with children over the age of 18 give them at least some financial support, whether it be for food purchases, cellphone plans, health care, or auto insurance. According to the survey, these parents spend, on average, $1,384 a month.
Other metrics indicate that young adults are doing well.
When compared to their parents at this age, Gen Zers—especially women—are more likely to work full-time and have college degrees. They are also making more money in addition to obtaining higher levels of education.
However, according to Savings.com, 61% of adult children who are still living at home make no contribution whatsoever to household costs.
