Many grown up Americans continue to rely heavily on their parents for financial assistance.
Nearly half of parents in the United States continue to financially supporting their adult children in 2024, according to a new survey.
“47% of parents with grown children provide them with some form of financial support (not including adult children with disabilities). This is a similar rate to last year’s report,” the survey report by savings.com reads.
This support includes covering various expenses, ranging from essentials like groceries and rent to more flexible spending like vacations.
On average, parents contribute $1,384 per month to their adult children, which is more than double what they save for their own retirement. “That’s more than twice what the average working parent in our study contributed to their own retirement savings monthly ($609 on average),” the report reads.
Despite signs of economic recovery, this trend has persisted, indicating that many young Americans rely heavily on their parents for financial assistance.
Image/Stats Credit: savings.com
The study has pointed towards the impact of economic challenges, such as layoffs, prompting parents to increase support for their children even at the expense of their own financial security.
Over six in ten adult (61%) children who live with their parents aren’t pitching in for any household expenses, like rent or groceries. Meanwhile, nearly half (46%) of the parents who provide financial support to their grown children are giving them money for vacations and fun stuff, and around one in five are assisting with credit card payments.
The report says 58% of parents have admitted that they’ve compromised their own financial stability to support their adult children. This is a significant increase from last year; then only 37% of parents said the same.
While most parents have some expectations for their assistance, nearly a third (29%) reportedly provide help without any conditions attached.
