(Zero Hedge)—More than 50% of parents with a child older than 18 are providing them with at least some financial support, according to a recent report by savings.com.
Key findings from the report:
- Half of parents with adult children provide regular financial assistance to their grown offspring. The average support per adult child is $1,474 monthly, about 6% higher than last year.
- 83% of supporting parents contribute to their adult kids’ monthly groceries; 65% help with cell phones, and nearly half (46%) pay for vacations.
- More than three-quarters (77%) of supportive parents attach conditions to their financial assistance. 23% give money without any conditions.
- Nearly 50 percent of parents have sacrificed their financial security to help their grown kids financially, and most supporting parents feel obligated to help their kids with money.
- Working parents who support grown kids contribute over 2X more money each month to their adult children than they do to retirement funds.
As savings.com continues, with inflation keeping the cost of living high, parents’ financial support has reached a new peak, averaging nearly $1,500 per month (or almost $18,000 annually). This represents a six percent increase from the monthly contributions we reported last year.
As you might expect, Generation Z adults (ages 18-28) receive more financial support from their parents than their Millennial counterparts (ages 29-44), who’ve had more time to build careers and establish income streams. While the average contribution to Millennials decreased slightly, a significant increase in support for Generation Zers pushed the overall average higher. Members of Generation X (ages 45-60) rarely receive financial assistance from their parents, likely because they’ve either achieved financial independence or have inherited family wealth.