A recent study found that nearly half of American adult children receive financial support from their parents. Financial support ranges from sending money and paying bills to mid-lifers, many of whom are still living at home or living with their parents.
To many people, including myself, this seems like a strange construction. From the time I entered high school, it became clear to me that once I graduated, I was expected to no longer live with my parents, let alone receive any financial support from them.
Of course, I was itching to move away from my parents and build my own life, so staying at home after graduation probably never occurred to me. But is the recent shift in mindset a cultural shift, or does it have something to do with the economy that young Americans are being forced to grapple with?
help?
According to a recent Savings.com study, nearly half of U.S. parents financially support their adult children. The average age of adult children still receiving financial support from their parents is 22 years.
Of the 47% of parents who pay for their adult children in some way, most said they believe children should be financially independent by age 25. However, many parents surveyed still support their children well beyond this suggested milestone.
Among each generation, 21% of parents financially support their Millennial children (ages 28 to 43) or Gen X children (ages 44 to 59). On average, the amount of financial aid given to these two generations ranges from $907 to $960 per month.
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The remaining parents support their Gen Z children (ages 18 to 27), which costs an average of $1,515 per month. Financial aid can be applied to a variety of expenses, but the most common are:
- groceries
- mobile phone charges
- rent
- mortgage
- Tuition fee
- Health insurance
So what is driving this trend in financial assistance to adult children?
not so clear
The authors of this study explain why adult children seem to cling to their parents. Those people write:
“As a result of a complex interplay of socio-economic factors, adults continue to rely on their parents for help into their 20s, 30s and beyond.”
As a millennial, I frankly couldn't imagine receiving financial support from my parents. I have always felt proud that he has been 100% financially independent since he was 18 years old.
That's true; I, a 41-year-old woman, have been paying my own bills, buying my own things, and securing my own housing ever since I became a legal adult. However, the world is very different now than it was when I was 18 years old.
The study explains:
„Some people are tempted to simply say that today's young people are just idiots and if they just step back, they can become normal, independent adults. For parents who are tired of covering the bills. It may be nice, but it doesn't solve or even adequately explain economic factors such as rising housing costs.“
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It's true that rents are much higher now than they were when I was a young woman more than 20 years ago, and the general cost of living hasn't improved. The USDA predicts that food prices will rise by 3%, and grocery store prices will rise by an additional 1.6%.
It's not as easy when you're…well…young and accomplishing it alone as it was when I was younger.
hidden costs
I think the goal of most parents is to provide more for their children than they were able to give to them. When my husband and I talk about what we want for our children's future, there's always a theme. That means we want our children to have it a little easier than we did, but with enough difficulty to carve their own path.
Depending on what you plan to do once your children enter college, you may be able to allow them to continue living together. But where should parents draw the line, and what are the tertiary and quaternary effects?
The same study found that parents contribute to their adult children's household finances.
“…support for adult children is 2.3 times the monthly spending on retirement accounts.”
This type of support can leave some parents and adult children in the opposite situation years later.Pew Research Center investigation It was found that 33% of adults between the ages of 18 and 34 have needed to help their parents financially at some point.
For a while, my husband and I found ourselves part of this group known as the Sandwich Generation, supporting children and adult parents at the same time…taking a huge financial and emotional toll. I had to.Same Pew Research Center investigation We also found an interesting reduction in major family milestones.
In 1993, 63% of Americans ages 30 to 34 were married. Currently, that percentage is just 51%. Additionally, in 1993, 33% of adults between the ages of 18 and 34 had at least one child. Now, that percentage has plummeted to her 27%.
No wonder it's not easy to find a date, let alone have kids, while having mom and dad pay your bills, or worse, living with mom and dad.
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