47% of Parents Still Support Adult Children With $1K+ per Month — More Than Their Retirement Contributions
Having children means committing to support them for many years. However, in today’s world, it seems that parents are providing financial support to their adult children at an increasingly high rate.
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The number of parents who provide financial support to their adult children is up from 2023 to 2024, according to Savings.com
The percentage of parents who financially support at least one of their adult children is 47% in 2024, up 2% from 45% in 2023. At the same time, the percentage of adult children living with parents who don’t contribute to all to household expenses is 61% in 2024, up 7% from 54% in 2023. On average, parents providing financial support give $1,384 to their children monthly. Shockingly, that’s more than twice what the average working parent in the Savings.com study contributed to their retirement savings monthly ($609 on average).
What’s more surprising: A full 46% of parents who financially support adult children give them money for vacations and discretionary spending. To add, 18% help their adult kids pay off credit cards.
It seems that parents are providing financial support to their adult children at a rate that’s higher than ever before. This may create a sense of entitlement and dependence.
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Why Providing Too Much Financial Support To Your Adult Children Isn’t a Good Idea
Here are a few reasons why providing too much monthly financial support to your adult children might not be the best choice as a parent.
Creating a sense of entitlement: Providing too much money to your adult children each month could create a sense of entitlement. If they expect a payment from you each month, you’ll be giving them your money indefinitely.
Reliance on your money: A consistent monthly payment can create a sense of financial reliance. With rising costs, stubborn inflation, and the dangers of lifestyle creep, your kids could develop a lifestyle in which they spend more and you’ll be on the hook every month.
Lack of motivation to work hard: A monthly payment to your adult children could foster a lack of motivation. This could mean that they’re less likely to ask for a raise, advance their career, or get a side hustle to support themselves on their own.
However, there are cases where it’s prudent to provide financial support. For example, if you have a physically or mentally disabled adult child who can’t work or support themselves. Or, if you have adult children who find themselves in a one-time financial bind such as a job layoff.
It’s OK To Compromise
As a working parent who’s probably fast approaching retirement age, it’s okay to tell your adult children no. Consider reducing your monthly contribution incrementally over time, this way they can adjust to a lower payment and start to make up the difference on their own. Additionally, you could set an age at which you no longer provide a monthly payment to them.
The fact of the matter is that if you’re giving your kids more money each month than you consistently contribute to your retirement account, they may have to take care of you financially in the end. If you don’t save enough, then your investments won’t grow and compound enough to support yourself once you stop working.
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This article originally appeared on GOBankingRates.com: 47% of Parents Still Support Adult Children With $1K+ per Month — More Than Their Retirement Contributions
