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The most common Parents support their children There is still a financial connection when a child reaches adulthood, but at what point should a parent cut off that financial connection?
Each family’s specific age limit will depend on a variety of factors, including the support agreement between the parents and children, the family’s financial situation, and the steps the children are taking toward financial independence.
Cultural tradition is another factor, with some cultures customarily continuing to sponsor children until they reach adulthood or even marriage.
Nearly half of Gen Z relies on financial support from parents or family: BOFA survey
According to the Food Industry Association, Gen Z is less likely to shop at supermarkets and more likely to shop at mass retailers. (Stefani Reynolds/AFP via Getty Images/Getty Images)
According to a survey conducted by bankrate.com, about 49% of adult children say they receive help with housing costs, and nearly 48% admit to getting help from their parents with day-to-day expenses. According to a survey by Savings.com, the expenses parents are most likely to cover are groceries, rent, and cell phone bills. On average, parents pay $1,384 per month for each adult child, according to a survey by Savings.com.
At what age should parents stop supporting their children financially? While there is no right or universal answer, there is a typical age at which parents should stop supporting their children financially.
Mobile phone bills and other everyday expenses
Many families support their children’s transition to adulthood by signing them up for a family cell phone plan. Not only can parents stay connected with their adult children, they can also provide them with the social and safety benefits that cell phones provide.
According to Savings.com, roughly 70% of parents pay for their Gen Z adult children’s cell phone bills, with that number dropping to 42% for millennial parents. This equates to an average of $60 per adult child.
According to a 2023 survey by BankRate, kids and parents have different opinions on when they should start paying for their cell phone bills, with kids saying 21 is the right age, while parents think 19 is the right age to remove kids from a family plan.
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Parents often help their adult children with household expenses, such as groceries and utilities. (iStock/iStock)
Other expenses parents may have to pay for their adult children include gas, groceries, and clothing.
Gen Z adults generally believe that parents should delay child rearing due to the rising cost of living. However, many parents are sacrificing their own financial situation by dipping into savings and retirement accounts to support their children. As young adults turn to their parents for financial assistance, parents need to consider whether they can reasonably cover the costs.
Rent and other housing costs
Of the $1,384 parents give to their adult children each month, a significant portion goes toward helping with housing costs, which can include letting them live rent-free in the family home or paying rent for them. More than half of parents surveyed help their children with housing costs, and some even help pay the mortgage.
According to a survey by Savings.com, the majority of young people receiving financial assistance from their parents are between the ages of 18 and 24. This correlates with the age that Gen Z adults think is appropriate to start paying rent (23), according to a Bankrate survey. Meanwhile, parents generally consider 19 to be the age for their children to take over rent payment responsibility.
Renting is slightly cheaper than buying, and Gen Z is renting more often than buying.
According to PBS.org, young people of past generations became financially independent at an earlier age than current generations, and they also got married and started families sooner. (George Marks/Retrofile/Getty Images/Getty Images)
A 2022 survey by the Pew Research Center found that 50% of adults ages 18 to 29 live with at least one parent, in addition to those who pay housing costs directly.
How to know when to stop paying your adult child
There’s no universally right age at which parents should stop supporting their adult children, as each family needs to make that decision based on what’s best for their wallets and what can best support their values.
According to MarketWatch, parents often help their adult children with bills like housing, cell phone and streaming subscriptions. (David Potter/Construction Photos/Avalon/Getty Images/Getty Images)
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Financial independence promotes responsibility and developmental growth in young people, but long-term support may be appropriate for their well-being.
