As parents we make a lot of sacrifices for our children, and this extends to potentially risking our own financial security to help them out even in adulthood.
That’s according to a new report from Bankrate.com which found that three in five survey respondents have make at least one financial sacrifice so they can help their adult children financially. Emergency savings (43%), paying down debt (41%), and retirement savings (37%) are among the sacrifices made, along with their ability to reach other financial milestones (44%).
“Parents are least likely to sacrifice their retirement savings in order to help their adult children financially," said Bankrate Chief Financial Analyst Greg McBride, CFA. “The fact that other financial milestones are first on the chopping block does suggest parents are appropriately prioritizing retirement savings – whether that is continuing to save or preserving what they’ve already saved.”
The report found that more than a quarter of adults (aged 23+) said their parents have supported them financially or are currently doing so. While Gen Zs are most likely to say this (42%), Millennials (42%), Gen Xers (22%), and Bomers (10%) have also received help from their parents.
This is most often housing costs with 49% having received financial help for this such as assistance with rent payments or being allowed to live with their parents for a low rent or rent free. Around half have also received ongoing support for everyday expenses.
“Housing costs and everyday expenses are the most common areas where adults are receiving, or have received, financial assistance from their parents,” added McBride. “Persistent inflation and housing affordability woes make it unlikely that this will change any time soon.”Those adults who return home to live with their parents, so called ‘Boomerang Kids’ are rising their own finances and those of their parents according to a recent Thrivent survey.
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