As the cost of living skyrockets, many adults are turning to a familiar safety net: Mom and Dad.
Nearly a third of millennials and Gen Zs aged 18+ are receive financial support from parentsaccording to a new study by personal finance site Credit Karma. The site surveyed more than 1,000 adults in October.
More than half of parents with adult children said their children live together. Another 48% of her said she pays her child’s cell phone plan, car payment, or other monthly bill. Nearly a quarter also said they provide their adult children with regular pocket money, pay some or all of their rent, or use their children as regular users of their credit card. I’m here.
“What used to be a monthly payment for a child’s cell phone is now a much larger expense for many parents,” said Credit Karma’s consumer finance advocate. Courtney Alleb said.
During the pandemic, many adults have returned with their parents — often called ‘boomerang kids’ — temporary spike to historic highs.
Most said they moved with their parents initially out of necessity or to save money.heavy student loan bill From college and soaring housing expenses It puts financial pressure on people who are just starting out.surge Cost of living When very high rent It’s getting harder to move on.
Another report found that the number of households with two or more adults has quadrupled over the past 50 years. Pew Research Center Based on Census data from 1971 to 2021. It is estimated that such households now make up her 18% of the US population.
25% of young adults now live in multigenerational households, up from just 9% 50 years ago.
In most cases, young people between the ages of 25 and 34 live with one or both of their parents. A minority live in their own home, with a parent or other older relative.
Not surprisingly, when two or more generations share a home, the older parent is more likely to bear most of the expenses. Typical of multi-generational households, her 25-year-old to her 34-year-old household accounted for 22% of her total household income, Pew’s research found.
But for parents, supporting grown children can be a considerable burden when their own financial security is at stake.
in an economy that produced the best inflation rate Since the early 1980s, the cost of providing support has skyrocketed. According to Credit Karma, 69% of parents who help their adult children say it’s a source of financial stress.
“It is imperative that parents do what they can to financially take care of themselves first before providing financial support to their adult children,” said Areb.
“Like anything else, budget your income and expenses, consider saving, paying off debt, and contributing to a retirement fund if possible,” she advised.
“Once that job is done, see how much is left to feasibly help adult children and set that expectation for them. Get back on their feet.”