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Jun 3, 2025  |  
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NextImg:47% of parents still financially support adult children, study finds

As the cost of living continues to rise, many young adults are finding it increasingly difficult to make it on their own.

Millennials and Generation Z are facing financial challenges that their parents did not encounter at the same age. Not only are their wages lower when adjusted for inflation, but they are also burdened with larger student-loan balances.

The challenges have led more parents to step in and provide financial support. Almost half, or 47%, of parents with a child over 18 are offering some sort of financial assistance, according to a report by Savings.com. 

The report found that parents are spending an average of $1,384 a month to support their adult children, CNBC reported.

Compared to their parents at the same age, Gen Zers are more likely to have a college degree and work full time, particularly women who are achieving higher levels of education and earning more.

However, the financial burden on parents supporting their adult children can be significant, putting their own retirement security at risk. A recent report by Savings.com found that 58% of parents have sacrificed their own financial security for the sake of their children, a significant increase from 37% the previous year.

Experts advise parents to have a solid financial plan in place before providing financial support to their adult children. Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners, suggests setting parameters and a time frame that aligns with their own financial goals.

“You need to create boundaries and figure out a balance,” she said. As a general rule, parents should prioritize saving for their own retirement and emergency fund before providing financial support.

Isabel Barrow, the director of financial planning at Edelman Financial Engines, advises parents to make a deal with their children.

“If they have income, they have a job, they can save. That needs to be their commitment to you,” Ms. Barrow said told CNBC.

• Staff can be reached at 202-636-3000.