Around 60% of Parents Still Give Financial Support, Live With Their Adults Kids [Survey]

The study highlights that 59% of parents acknowledged providing financial assistance to their adult children in the past year.

Furthermore, among the young adults living with their parents, 64% expressed positive impacts on their personal financial situation, while 55% reported positive effects on their relationships with their parents.

Parents Still Gives Financial Support to Adults Kids

The survey delves into how young adults contribute to household expenses while residing with their parents.

Notably, 65% assist in covering general household costs such as groceries and utilities, while 46% contribute to rent or mortgage payments.

Experts on personal finances, interviewed by The Wall Street Journal, note that the delayed achievement of adult milestones by younger individuals has led to prolonged financial support from their parents.

The evolving landscape indicates that milestones like homeownership are now being reached at later ages, with some individuals expressing challenges, such as high down payment requirements, in achieving financial independence.

One individual, a 39-year-old high school teacher named Adam Stojanik, emphasized the significant impact of the down payment on purchasing a house, making it challenging to progress without family support.

The financial struggles of young adults are further highlighted by the mention of a "young-adult allowance," where some individuals receive periodic financial assistance from their parents. This form of support is particularly crucial, considering the economic uncertainties of 2024.

In addition to the Pew survey, another study conducted by Qualtrics for Intuit Credit Karma found that a substantial portion of Generation Z and millennials express an "obsession" with the idea of becoming wealthy.

Nearly half of these respondents reported such aspirations, along with a significant number acknowledging "money dysmorphia," characterized by a distorted view of their finances leading to potentially poor decisions.

The economic challenges persist, with a notable percentage of millennials and Gen Zers feeling behind on their financial goals amid the uncertain economic conditions of 2024.

The data, gathered through surveys conducted in October and November 2023 involving 3,017 adults and 1,495 young adults, shed light on the economic dynamics of intergenerational financial support.

Pew Research Survey Result

Among the surveyed young adults, only 45% claimed complete financial independence from their parents.

A late 2023 Business Insider survey highlighted the financial stress experienced by Gen Z, with nearly half expressing concerns about their daily spending.

Despite these worries, a significant portion of Gen Z is taking proactive steps towards early retirement, engaging in investments and initiating retirement accounts.

The survey also unveiled that 57% of young adults between 18 and 24 are living with their parents, marking an increase from 53% in 1993.

Interestingly, almost two-thirds of those residing with parents reported positive impacts on their personal finances, with 72% contributing financially to household expenses like utility bills or rent.

Moreover, 75% of those relying on parental support expressed confidence in achieving financial independence eventually.

High earners, yet not classified as wealthy (HENRYs), shared their financial struggles with Business Insider.

Despite six-figure incomes, many HENRYs feel financially constrained due to factors such as student loans, debts, or high housing costs.

One-fifth of the homebuyers received financial support from relatives or friends, according to the National Association of Realtors from the 2023 survey.

Youngsters Face Financial Struggles

The younger generation, although better educated and more employed than their parents, faces financial challenges.

About 68% of young adults seek financial advice from their parents, while only 45% of parents turn to their own parents for advice during their 20s and 30s.

Even though a greater percentage of young adults are employed full-time and hold college degrees, economic circumstances have led them to delay marriage and having children.

Only 27% of adults ages 30 to 34 have children, a sharp decline from the 60% reported in 1993.

The Pew report highlights the deep investment parents, particularly those in higher-income brackets, have in their children's success.

For these parents, the achievements and failures of their children are seen as indicators of their parenting quality.

Communication channels between parents and young adults are active, with 73% exchanging text messages a few times a week, and 54% engaging in phone conversations.

Striking a balance between involvement and non-involvement, only 9% of young adults felt their parents were too involved, contrasting with 22% who believed their parents were not involved enough.

Living together strengthens these relationships, with mothers generally maintaining stronger connections with their young adult children than fathers, as per the report's findings.