Most parents have made a financial sacrifice to help their adult children

Most parents have made a financial sacrifice to help their adult children
Emergency savings, debt payments, even retirement savings are at risk.
MAY 31, 2024

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.

Latest News

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

Fintech bytes: Pontera and Opto Investments expand RIA reach with new tech partnerships
Fintech bytes: Pontera and Opto Investments expand RIA reach with new tech partnerships

Snowden Lane taps Pontera for held-away retirement account management, while Opto Investments enhances an Indiana-based independent RIA's private markets offering.

Credent Wealth Management debuts in Detroit with TFG Advisors deal
Credent Wealth Management debuts in Detroit with TFG Advisors deal

The $420 million RIA in Auburn Hills and Ann Arbor gives Credent its second and third Michigan locations while pushing it closer to $4 billion in AUM.

Investor anxiety hits six-year high amid market turmoil, Allianz finds
Investor anxiety hits six-year high amid market turmoil, Allianz finds

New survey reveals heightened investor concern over market volatility, retirement readiness, and the impact of tariffs on living costs.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.