Financial Challenges Faced by Young Adults and Parental Financial Support
Many young adults face financial challenges such as lower wages and larger student loan balances compared to their parents. Parents are increasingly providing financial support to their adult children, with nearly half offering assistance averaging $1,384 a month. However, supporting grown children can strain parents' own retirement security.
Key Points
- Young adults have lower wages and larger student loan balances compared to their parents
- Nearly half of parents provide financial support to adult children, averaging $1,384 a month
- 61% of adult children living at home don't contribute to household expenses
- 58% of parents have sacrificed their own financial security for their adult children
- Parents should set boundaries and consider their own financial goals when providing support
Pros
- Parents stepping in to help young adults navigate financial challenges
- Increased likelihood of young adults having college degrees and working full time
Cons
- Strain on parents' own retirement security due to providing financial support
- Some adult children not contributing to household expenses while living at home