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It is common for parents to support their children even as they enter adulthood, but at what point should parents cut the financial ties?
The specific cutoff age for each family depends on various factors, including the support agreement made between parents and children, the family’s financial situation and the steps that the children are taking toward financial independence.
Cultural traditions are another factor, as it is customary in some cultures to continue supporting their children into adulthood or until they enter marriage.
NEARLY HALF OF GEN Z RELY ON FINANCIAL HELP FROM PARENTS, FAMILY: BOFA SURVEY
Gen Z is less likely to shop at supermarkets and more likely to shop at a mass-market retailer, according to the Food Industry Association. (STEFANI REYNOLDS/AFP via Getty Images / Getty Images)
Approximately 49% of adult children report receiving help with housing costs, while close to 48% acknowledge assistance with daily expenses from their parents, according to a survey conducted by bankrate.com. The expenses most likely to be covered by parents are groceries, rent and cellphone bills, according to a poll by Savings.com. On average, parents are providing $1,384 a month for each adult child, according to the Savings.com survey.
At what age should parents cease financial support for their children? There is no correct and universal answer, but there are typical ages at which parents discontinue supporting their kids through monetary means.
Cellphone bills and other everyday expenses
Many families support their children’s transition into adulthood by keeping them on the family cellphone plan. Parents can ensure that they stay connected with their adult children but also equip them with the social and safety measures that a mobile phone offers.
About 70% of parents are supporting their Gen Z adult children with their cellphone bill, and that percentage drops to 42% for parents of millennials, according to Savings.com. This comes to a total of $60 on average per adult child.
A 2023 study by BankRate shows that children have differing opinions from their parents about when to start paying for their cellphone bills. Children say that 21 is an appropriate age, while parents favor age 19 for removing them from the family plan.
WILL KIDS INEVITABLY GROW UP SPOILED IF THEY ARE IN A FAMILY THAT’S WELL OFF?
Parents often help with their adult children’s household expenses, such as groceries and utility bills. (iStock / iStock)
Some other expenses that parents often pay their adult children for include gas, groceries and clothing.
In general, Gen Z adults believe parents should delay their cutoff age because of the high cost of living. Many parents, however, help their children to the detriment of their financial situation, often pulling from savings or retirement. As young adults turn to their parents for financial assistance, parents must consider whether they can reasonably afford the expense.
Rent and other housing costs
A substantial portion of the $1,384 a month that parents support their adult children is to help with housing expenses. This can involve allowing their children to live rent-free in the family home or covering rental payments. More than half of the surveyed parents are helping with their child’s housing costs, and some are even contributing to their child’s mortgage payments.
The majority of young adults who benefit from financial support from their parents are between the ages of 18 and 24, according to a Savings.com survey. This correlates with the period when Gen Z adults believe it is appropriate to start paying their rent, which is age 23, according to Bankrate’s research. Parents, on the other hand, generally view 19 as the age for their children to take over the rent payment responsibility.
RENTING IS SLIGHTLY CHEAPER THAN BUYING, PUSHING GEN Z TO RENT MORE OFTEN THAN BUY
Young adults in past generations became financially independent at an earlier age than present generations, and they often married and started their own families earlier, according to PBS.org. (George Marks/Retrofile/Getty Images / Getty Images)
Aside from directly paying their housing costs, 50% of adults between the ages of 18 and 29 were found to be living with at least one parent, according to a study by Pew Research Center from 2022.
How to know when it is time to stop paying for your adult children
There is no universally correct age that parents should stop supporting their children once they reach adulthood, as each family will need to make the determination based on what is best for their wallets and to best support their values.
ALMOST 60% OF PARENTS STILL GIVING THEIR ADULT KIDS MONEY, WHILE MAJORITY OF ADULT KIDS LIVE AT HOME: SURVEY
Parents often help their adult children with housing expenses and bills, such as cellphone and streaming-service subscriptions, according to MarketWatch. (David Potter/Construction Photography/Avalon/Getty Images / Getty Images)
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Financial independence can encourage responsibility and developmental growth in young adults, but there are also circumstances when extended support is appropriate for their well-being.
