- Savings.com research found that 47% of parents with adult children provide them with some form of financial support
- More than half of those surveyed said they sacrificed their own financial security for their adult children
- Financial help from parents often goes on essentials such as groceries, rent/mortgage and healthcare/health insurance.
Nearly half of parents are providing some form of financial support to their adult children, a survey has found.
Savings.com’s third annual survey found that, of 1,000 parents surveyed, 47% provided some financial support to their adult children – with the average amount being handed over being $1,384 per month.
Generation Z children – aged 18-27 – were most likely to receive financial support, but this was acknowledged as being because they were the most likely to be in education or training or at an early stage of their careers, where their salary may not be high.
The average amount provided was, on average, more than double what working parents put away per month for their own retirement ($609).
Also, most parents (71%) do not attach any strings to the help they give to their children.
While the US economy has improved in recent months, this survey would indicate that it has yet to trickle down to the younger members of the workforce, with seemingly many reliant on handouts from their parents.
Parents reported that 81% Generation Z children spent money they received from parents on groceries/food, 60% said it contributed to their mortgage or rent and 67% said it went on healthcare or health insurance. That said, 54% said it went to leisure or vacations and 48% on ‘discretionary spending’.
Parents are doing this even when it is putting their own finances under pressure; 58% said their financial security was affected for the sake of their children – a rise of 21% on the previous year’s survey.
Indeed, 60% of parents said they were willing to live more frugally and 45% were willing to take money out of their own retirement funds to ensure they can help their children.
Savings.com concluded by saying that the results showed a clear challenge in the economy, and it was driven by complex socio-economic factors, such as rising housing costs.
