'The economy is different now': Parents pay grown-up kids' bills with retirement savings
Three-fifths of parents with adult children gave them financial help in the past year, Pew Research reports in a new study.
The finding illustrates – in case we needed a reminder – that modern parenting does not end when a child turns 18. But supporting an adult child can get costly, financial planners say. And parents need to make sure their own financial needs are met.
Roughly half of under-30 adults live with their parents, prior Pew research has shown. That figure has spiked dramatically over the years.
Americans are marrying later, and waiting longer to have children. Researchers say those trends point to a new life stage, tucked between adolescence and full adulthood. Some term it “emerging adulthood.”
'Snowplow' parents clear a financial path for adult children
Young adults face myriad economic challenges in 2024 America. College costs and student debt loads are rising. House prices have soared. Mercurial inflation and interest rates have vexed consumers.
Parents, for their part, seem ever more inclined to carry on with parenting well past the age a child exits childhood, removing every obstacle in their path. Some researchers call it “snowplow” parenting.
“Let’s move everything out of the way, so our kids can walk perfectly down the street,” said Jonathan Abramowitz, a psychology professor at the University of North Carolina.
It’s easier than ever to pay an adult child’s bills, whether the kid lives with you or not. Earlier generations mostly paid their bills by mail. Now, everything’s on apps or online.
Pew reports that 28% of adults ages 18 to 34 received financial help with household expenses, such as groceries or utilities, in the past year; 25% got a parent’s help with a cellphone bill or streaming subscriptions; 17% with rent or a mortgage; 15% with medical expenses; and 11% with education expenses.
Fewer than half of adult children report financial independence
Fewer than half of young adults claim complete financial independence from their parents, Pew reports. Even past 30, one-third of adult children rely on their parents to pay at least some of the bills.
The Pew study, published on Jan. 25, draws on a survey of 4,512 adult children and parents.
Often, parental aid to aging children is relatively trivial.
John Maxwell, a lawyer in St. Louis, is father to three 30-something daughters.
When they finished school, he told them, in effect, “You’re on your own, kiddo.” They got jobs, moved out, and learned to pay their way.
But not entirely. The Maxwell parents still pay for a family cellphone plan and some streaming services. Each year, the parents cover airfare or hotel bills for a family vacation.