60% of parents still give money "pocket money" to your adult children

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It seems that the financial “umbilical cord” connects parents and older children into old age.

Parents’ financial support or substantial investment in their children’s adult lives is nothing new. Whether it’s financing a wedding or buying a house, parents are the main sponsors. Experts comment on whether anything has changed today.

About 59% of parents said they helped their children (under 35) financially in the past year, according to a report released Thursday by the Pew Research Center. In addition, more and more young people are staying at home. It is noteworthy that 57% of young people under the age of 25 continue to live with their parents (in the “children’s room”).

Economists and researchers explain the above data by saying that today’s young people take longer to achieve their professional goals, and their path to “becoming” is more expensive. The wealth gap between older and younger citizens is wider, giving some parents more means and reasons to help their older children. In short, Coming of age no longer means giving up parental support.

Adult children don’t necessarily get more money from their parents, but they depend on them longer than previous generationsexplains Marla Ripoll, professor of economics at the University of Pittsburgh.

According to a Pew poll, Of the young adult children who said they received financial help from their parents in the past year, most said they provided it for everyday household expenses such as phone bills and subscriptions to streaming services such as Netflix.

The amount of money and frequency of assistance varies depending on age. People aged 18 to 34 are much more likely to say they are completely financially independent from their parents than younger people.

Nearly a third of 30- to 34-year-olds say they still receive help from their parents.

Heather McAfee, a 33-year-old physical therapist from Austin, Texas, said she lived in her home from 2019 to 2021, otherwise she would not have been able to pay off her student loans. The plan worked: She has since reduced her student debt from $83,000 to $15,000. “It helped a lot,” he said. “I no longer had to take out loans to pay for an apartment or anything like that.”

Just over half of the parents surveyed said having adult children at home had brought them closer or improved their relationships, but nearly 20% said it was hurting their finances.

While previous generations achieved greater financial independence in their early 20s, young people today are often unable to achieve a similar level of independence, such as living on their own or buying their first home.

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