The “Bank of Mom and Dad” is giving out more money than ever to help support their adult children, according to a new report from Savings.com. To find out how much parents are shelling out for their kids over the age of 18, they surveyed 1,000 of them on what they’re giving, how it affects their financial health and how long they’re willing to keep it up.
As the report points out, “Adulting is expensive,” and this is how parents are helping their grown children pay the bills.
- Half of parents with adult kids give them regular financial assistance.
- That’s up from 47% last year and 45% in 2023.
- These moms and dads are giving an average of $1,474 a month per adult child.
- This includes contributing to groceries (83%), paying for cell phones (65%), health insurance (54%), rent or mortgage (63%), cars (44%), tuition or school expenses (45%) and even vacations (46%).
- Some parents are also helping their kids over 18 pay back student loans (23%) and pay down credit cards (21%).
- But more than three-quarters (77%) of these moms and dads attach conditions to their financial assistance, like making their grown child have a job, go to school, or contribute to household expenses.
- Nearly 50% of parents admit that they’ve sacrificed their own financial security to help their kids, but they feel obligated to help.
- And 18% say their financial contributions could go on indefinitely.
- But a third of those who give money to their grown children say they’ll cut off that support within the next two years.
Source: NBC News
photo: GETTY
Photo: Koldunova_Anna / iStock / Getty Images