According to a Pew Research Center statistic cited in a Wall Street Journal report, around 60% of parents with kids aged 18-34 had helped them financially in the previous year. This support can range from groceries to down payments. While not all parents are able to provide this assistance, “among parents who have already covered more pressing financial needs, and who have the means to help, there is a resignation of sorts.” Rising costs of living, education, and limited entry-level jobs have made it challenging for younger generations to achieve financial independence. This shift is starting to factor into the financial planning of young parents, with some setting aside monthly contributions as a “lifelong allowance” for their children. As one financial advisor put it, “you either need to be comfortable with your kids struggling or you need to set aside some money now.” (Newser)
PHONE TOPIC: When’s the last time you borrowed money from your parents?