Nearly 60% of parents said they were providing financial support to their adult kids ages 18 to 34

Nearly 60% of parents said they were providing financial support to their adult kids ages 18 to 34, per PEW.


Amid widespread economic challenges, this data sheds light on the considerable difficulties Americans face in establishing themselves in adulthood. The report underscores this struggle by referencing a prior Pew survey revealing that nearly half of individuals aged 18 to 30 still reside with their parents.

Additional survey insights include 28% of adults aged 18 to 34 receiving financial assistance for household expenses like groceries in the past year, 25% relying on parental support for cell phone bills or streaming subscriptions, 17% for rent or mortgage payments, and 15% for medical expenses.

The reliance on parental assistance extends beyond the age of 30, with one-third of respondents still depending on their parents to cover some of their bills.

While parental support can be a lifeline for young adults, it also carries risks. Financial planner Teresa Bailey shared that some parents are delving into their retirement savings to aid their children, driven by the belief that economic conditions have evolved, making financial independence more challenging.

Bailey emphasizes the importance of ensuring parents don't jeopardize their own financial well-being by dipping into retirement funds. She checks if they are unintentionally setting themselves up for financial reliance on their children in the future.

Despite the hardships, a survey by Empower indicates that 60% of Americans believe they can achieve financial freedom this year. Nonetheless, financial stress remains a significant concern for 72% of respondents, with 17% expressing daily worries about money.

The Empower poll also reveals that 47% of participants define financial freedom as independence from financial support from family or friends, and 44% equate "making it" with achieving financial independence.