Nearly half of parents financially support adult children, survey says (2024)

FAQs

What percentage of parents help adult children financially? ›

A recent survey found nearly half of parents with a child over 18 are financially supporting them. In fact, according to data from Savings.com, of 1,000 parents, 47% reported providing ongoing financial assistance to their adult children.

47% of Parents Still Support Adult Children With $1K+ per Month — More Than Their Retirement Contributions. Having children means committing to support them for many years. However, in today's world, it seems that parents are providing financial support to their adult children at an increasingly high rate.

Nearly half of US parents provide some kind of financial support to their adult children, who are grappling with higher food and living costs than they did, a new study has found.

There is no universally correct age that parents should stop supporting their children once they reach adulthood, as each family will need to make the determination based on what is best for their wallets and to best support their values.

Nearly half of parents with a child older than 18 provide them with at least some financial support, according to a recent report. For parents, however, supporting grown children can be a substantial drain at a time when their own retirement security is at risk.

Some parents are even sacrificing meals to help them pay their bills. According to an overwhelming majority (68.5 percent) of 1,289 U.S. parents who took part in a new survey by CouponBirds conducted between January 4 and March 4, the country is currently living through a cost of parenting crisis.

For some parents, there is no empty nest

Pew found that about a third of young adults between the ages of 18 and 34 are still living with a parent. More than half (57%) of those in the 18-to-24 age group said they were doing so; as did 21% of those ages 25 to 29 and 11% of those between the ages of 30 and 34.

But there is a unique benefit when parenting time is split 50/50—vs 20% or 30% with dads. Research by child psychologist William Fabricius at Arizona State University finds that outcomes for these kids of divorce and separation improves the closer the parenting schedule gets to 50/50.

They don't get to buy a house, marry, have children and you still support them. They don't get to decide where to go out to eat or what to order, they are still children until self supporting. Legally, a court could make such an order. But the situation would need to be highly unusual.

According to SmartCapitalMind, financial experts agree that parents should charge rent to adult children living at home or in another property the parents own.

Why do American parents charge rent? ›

Even if you don't need the money, charging kids rent ensures responsibility and is a sort of forced savings account. Generous parents could return the accumulated monthly rent back to their children when they're ready to leave.

Housing, food and childcare make up the largest percentage of children's expenses. As children grow, you can expect to pay for things including hobbies and sports teams. When adjusting USDA estimates for inflation, parents can expect to pay between $16,227 and $18,262 a year raising a child born in 2023.

Key findings. 65% of parents give their adult children (ages 22-40) some kind of financial support.

Given that a Credit Karma survey found that two-thirds of the parents who financially support their adult children said doing so causes them financial stress, financial planners say parents should budget their own expenses before they offer support to an adult child.

Create a Plan and Communicate It

Swantner recommends creating a firm plan that gradually reduces the child's financial dependence. You might, for example, stop paying the cell phone bill this month, the grocery bill next month, and then let your child know that in six months, she's responsible for her own rent.

A new report released last week by the Bank of America's Better Money Habits financial education team found that 46% of Gen Zers between the ages of 18 and 27 rely on financial assistance from their parents and family.

According to the Ameriprise Financial Money Across Generations study, 9 out of 10 parents with adult children ages 20 to 35 have helped their adult children with some type of financial assistance ranging from college, a car, rent, utilities, credit-card debt, and/or down payments for houses (Money, January 2009).

Nearly 80% of parents also pay their children an allowance, with the majority of parents requiring children to earn the allowance to teach them the value of working to earn money. But how much should you pay your child for an allowance?

Supporting your parents financially is becoming increasingly more common due to a lack of retirement savings and parents outliving their savings. You could experience financial strains like, increased expenses, reduced income, and the challenge of addressing your own obligations as well.