As if raising a child wasn't expensive enough, a majority of American parents are still incurring major expenses from their grown-up children. A Bankrate survey finds 61% of parents have made a significant financial sacrifice to help their adult children. That includes nearly half who have used their emergency savings, and about 4-in-10 who tapped their retirement savings or took on debt. As for the "kids," about half of those over 23 get regular assistance from their parents with housing costs, and about the same number get help with everyday expenses.
"Shelter is the most common area of parental assistance," says Greg McBride, Bankrate chief financial analyst. "That can be everything from paying the rent, to living at home rent-free or with reduced rent, to assistance in buying that first home. But right behind it is assisting with everyday expenses...that can be utilities or groceries."
And it's not just financial support adult kids are getting. Another survey from two years ago found a record number of young adults are still living at home, as many parents find it difficult to cut those strings. "We're even seeing about a third of parents who are providing (financial) assistance without any specific purpose or strings attached," says McBride.
"A lot of this certainly speaks to housing affordability woes and rental affordability woes," he continues. "But you're also seeing a reflection of just the higher cost of living that, particularly, early-career professionals are having to contend with."
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