Study: Adult Children Still Rely on Parents for Financial Help as Cost of Living Skyrockets

The skyrocketing cost of living has caused adult children to rely on financial support from their parents, according to a study from the personal finance website Credit Karma.

The study, which was conducted by Qualtrics on behalf of the personal finance website, found that of 1,008 respondents, nearly one-third of parents (31 percent) still provide their adult children with financial support beyond the basics.

Of the 31 percent who provide support to their adult children, over half (51 percent) said they allowed their children, sometimes multiple, to live at home. Another 48 percent also paid some or all of the adult children’s monthly bills, such as cell phone, utilities, and car payments. Additionally, 24 percent of the parents who support their adult children will regularly give them allowance or checks.

“What used to be paying your kid’s cell phone bill every few months has now turned into a much more extensive set of expenses for many parents,” said Courtney Alev, consumer financial advocate at Credit Karma. “While this feels like a necessary and important expense, it’s essential that parents do what they can to first take care of themselves financially, before offering financial support to their adult children.”

Due to the parents offering support for their children, many of them feel the impact of supporting their children on their own finances. Of the parents who support their children, 81 percent said they feel the effect, such as on their own lifestyle (50 percent), which has made 49 percent of them need to cut back on living expenses.

In fact, roughly 40 percent said it had limited their retirement savings, while it is making 30 percent of the parents work longer and prolong their retirement, and 25 percent said they are taking on more debt.

“Like with anything, make a budget for your income and expenses, factoring in savings, debt repayment, and, if possible, contributions to a retirement fund,” added. “Once you’ve done that work, see how much you have leftover to feasibly help your adult kid(s) and set that expectation with them.

Putting the burden of helping adult children caused 65 percent of the respondents to say the need to help has caused them mental stress, while it caused 69 percent to have financial stress.

Despite all of this, when the parents were asked why they continue to help, 45 percent said they would because it is their “duty” as parents, while 39 percent said it was due to inflation and the rising cost of living. Thirty-one percent said their children could not find sufficient employment, and 18 percent said the skyrocketing rent costs push them to help out their children financially.

Alev offered advice by stating, “You might even consider setting an expiration date to give your adult children a timeline for when they need to be back on their feet.”

The survey was conducted by Qualtrics in the United States for Credit Karma from October 26 to 31 among 1,008 adults ages 18 and older.

Jacob Bliss is a reporter for Breitbart News. Write to him at jbliss@breitbart.com or follow him on Twitter @JacobMBliss.