Most Gen Z Adults Are Still Getting Money From Their Parents — But at What Cost?
For many members of Gen Z, financial help from family doesn't stop at 18. In fact, many Gen Z adults still depend on their parents to help them cover expenses.
A recent Savings.com survey revealed that half of American parents with adult children are still bankrolling them, up from 47% just last year. And the numbers are staggering.
Here's a closer look at just how much parents are giving their Gen Z children.
The Price of Adulting
Savings.com surveyed 1,000 U.S. parents of adult children and found that the parents of Gen Z adults give them $1,813 a month on average. That's nearly $22,000 per year.
Parents aren’t necessarily handing their adult children $1,813 in cash each month to spend as they desire. They're paying for essentials:
Food or groceries: 87%
Cell phone: 73%
Healthcare or health insurance: 69%
Rent or mortgage: 66%
Tuition or other school expenses: 57%
Vacations: 56%
Car: 49%
Discretionary spending: 47%
Student loans: 26%
Credit cards: 22%
Investments: 18%
The Real Cost: What Parents Are Sacrificing
Here's where it gets uncomfortable. Supporting an adult child comes with a price, and parents are paying it.
According to the survey, 47% of parents admitted they've sacrificed their own financial security to help. Another 40% feel pressured to help even though it caused them financial discomfort. And 35% feel financially responsible for their adult children.
The biggest sacrifices parents are making:
Live a cheaper lifestyle: 62%
Withdraw funds from their savings or retirement account: 50%
Retire later than planned: 35%
The Expiration Date
Parents know this can't last forever, and most aren't planning indefinite financial support.
Twenty-eight percent said they'll end support within three to four years. Another 26% plan to stop in one to two years. That's over half of supporting parents putting an expiration date on their generosity.
The question Gen Z should be asking: What's the plan when that money stops?
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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