Half of American parents with adult children are supporting them financially, according to a report by Savings.com. The number of adult children dependent on their parents continues to tick higher, up from 47% in 2024 and 45% in 2023. In fact, the average parent is spending $1,474 monthly per child to make ends meet amid the cost of living crisis.
Around 83% of respondents reported contributing to their adult children’s monthly grocery bills, 65% assist with cell phone plans, 44% are paying off auto payments, and 45% are paying for student loans. For those who are not living at home, 63% of parents admitting to helping pay toward rent or mortgages.
This is causing stress for a generation that should be planning for retirement, with 60% admitting they are living a more frugal lifestyle to support their adult kids. Half of respondents said that they have had to pull money from their savings and/or retirement accounts, and another 31% have taken on debt to continue supporting their kin. As for retirement, 35% believe they will need to push back on retirement plans.
This growing trend is altering society. Every generation is feeling the burden of the cost of living crisis. Rentals have never been higher and it is increasingly difficult for adults with entry-level jobs to find housing. In fact, one in three adults aged 18 to 34 still live with mom and dad. Autos, groceries, health care—every aspect of life has increased dramatically for the younger generations. This is one of the reasons why we see a declining birth rate as the cost of living is costing Gen Z and younger Millennials the opportunity to pave their own way.
