So parents step in to help. One study found that nearly half, or 47%, of parents with children over 18 rely on at least some level of financial support, from buying groceries to paying for cell phone plans to paying for health and car insurance. Offered to children. Report by Savings.com.
These parents spend an average of $1,384 per month, according to the report.
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Young people are also doing well on other measures.
Compared to their parents this age, Gen Zers are more likely to have a college degree and work full-time, and women in particular are not only better educated, but also have higher incomes.
Still, 61% of adult children still live at home and contribute nothing to household expenses, Savings.com found.
But for parents, supporting grown children when their own retirement security is at risk can be a huge burden.
In fact, 58% of parents say they have sacrificed their financial security for their adult children, up from 37% of parents the previous year, the Savings.com survey found. .
Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Fla., says parents should “do a proper financial plan for themselves and then decide how much money to give to their children.” We should plan for that.”
McClanahan, who is also a member of CNBC’s advisory council, said parents should consider providing financial support that takes into account their retirement plans and other financial goals, such as paying off debt or saving for long-term health. , suggests setting the parameters and duration. Nursing care costs.
“You need to create boundaries and find a balance.”
As a general rule, you should first set aside money for retirement and an emergency fund, she said.
Isabel Barrow, director of financial planning at Edelman Financial Engines, advises clients to agree to the deal. Parents will provide some level of financial support to their children if the children make decisions to support their financial future in other ways, such as: Contribute 10% of her salary at work to her 401(k).
“They have an income, they have a job, they can save. That needs to be their commitment to you,” Barrow said.
