A strong majority of parents in the United States report making financial sacrifices to help their adult children, especially as they “[start] their careers in tumultuous period of inflation and rising interest rates,” according to a recent survey from Bankrate.
Approximately 7 in 10 report making financial sacrifices for their children, and nearly one third of that group (31 percent) say help is significant, KARE11 reported of the April poll on Tuesday.
The survey found that half of parents (51 percent) say they have sacrificed emergency savings as well as debt payoff efforts (49 percent). Forty-three percent say they have given up some of their retirement savings.
The survey found that lower income households are more likely to sacrifice emergency savings to help their adult children.
“In households with an income under $50,000, 58 percent say they sacrificed their emergency savings for their children, compared to 46 percent of parents with a household income of $100,000 or more,” according to the survey report.
Ted Rossman, a senior industry analyst at Bankrate told the outlet that while there is nothing wrong with parents helping children transition into adulthood, their help must come with a strategy.
“Definitely don’t give more than you can afford to lose, and consider setting strict parameters,” Rossman said. “Maybe you really want to help your kid through a tough spot, but you don’t want to be a blank check either. So, maybe set some really specific guidelines in terms of how much money, what it’s going to be used for, how long that’s going to go on because it can’t be indefinite.”
RELATED: Atlanta Fed Pres.: We’ve Done “Easiest Part” on Reducing Inflation, “Now, It’s Going to Take Some Time”:
One parent of a 26-year-old daughter who is a working professional with a master’s degree told the outlet that everyday costs are too expensive not to help.
“Your parenting doesn’t end at a certain age. It just doesn’t disappear,” parent James Christopher Ryan said. “When you have a child, it changes as we get older and our relationships evolve. So, to me, parenting ends when I die. It just doesn’t end at 18, 21, 26, 32. It just doesn’t.”
The survey also found that each generation has varying ideas about when a young adult should begin paying their own bills. Older generations believe young adults should begin paying their bills “far earlier” that younger generations, the survey report states.
“While Gen Zers believe people should begin paying for their car payment at 22 years old, for example, baby boomers believe they should begin paying at 20 years old. Gen Zers and baby boomers also highly disagree on car insurance (22 years old on average versus 19 years old on average) and cell phone bills (21 years old on average versus 19 years old on average),” according to the survey report.
The survey found that on average, American adults think people should start paying their own bills at 20 years old for their credit cards, subscription services, cell phone, car insurance, and car payment — “the youngest average ages for bill payments.”
“They also believe people should pay both their own health insurance and student loans starting at 23 years old on average — the oldest average ages for bill payments,” according to the survey.
Bankrate commissioned YouGov to conducted the survey. The survey was conducted with 2,346 U.S. adults between March 14-16, 2023, among whom 773 are parents with children 18 years old and older.
WATCH: Atlanta Fed Pres.: I “Probably” Wouldn’t Cut Rates Even if There’s a Recession, Won’t Be Thinking About Cuts Until “Well into 2024”: