47% of parents still financially support adult children, per CNBC
47% of parents still financially support adult children, per CNBC.
These parents are shelling out $1,384 a month, on average.
Millennials and Generation Z face unique financial challenges, including lower wages adjusted for inflation compared to their parents' earnings at the same age and higher student loan debt.
To aid their children, parents are assisting with various expenses such as food, cellphone plans, health insurance, and auto insurance. A report by Savings.com revealed that nearly half (47%) of parents with children over 18 provide some form of financial support.
Despite having higher levels of education and full-time employment compared to their parents, many Gen Zers still living at home do not contribute to household expenses, with 61% failing to do so, as found by Savings.com.
Supporting adult children can strain parents' finances, especially when it comes to their own retirement security. According to Savings.com, 58% of parents have compromised their financial security for their adult children, a significant increase from 37% the previous year.
Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida, suggests that parents should prioritize their own financial planning and budget how much they can afford to support their children.