- Pew Research Center report shows 59% of US parents financially support young adult children.
- Majority of surveyed young adults are not financially independent from their parents.
- High-earning Americans known as HENRYs still face financial challenges, including debt and high housing costs.
Additional Coverage:
- Most parents are still giving money to their young adult kids, survey found (businessinsider.com)
A recent report from Pew Research Center revealed that 59% of parents in the United States financially assist their young adult children, aged 18 to 34. This assistance varies by age and was determined through surveys conducted in October and November 2023 of 3,017 adults and 1,495 young adults. Additionally, less than half of the surveyed young adults indicated that they are completely financially independent from their parents. The report also highlighted concerns about financial futures among higher-earning Americans, known as HENRYs.
The Pew Research Center report shed light on the fact that millions of parents across the country are still providing financial support to their children well into their 20s and 30s. The percentages of parents helping their children ranged based on age, with 57% of young adults between 18 and 24 still living with their parents, an increase from 53% in 1993. This demographic expressed positive impacts on their personal finances as a result of living with their parents, with 72% contributing to household expenses.
Even among young adults who are considered HENRYs — high earners but not yet rich — financial challenges are prevalent. Many HENRYs feel financially stuck, facing student loans or debt as well as high housing costs. A survey from the National Association of Realtors revealed that a fifth of first-time homebuyers received financial assistance from relatives or friends. Some HENRYs are cutting back on spending and delaying starting families to build a stronger financial foundation.
While today’s young adults are better educated and more likely to be employed full-time compared to their parents, they face greater financial struggles. The rising costs of childcare and concerns about economic circumstances contribute to a shift in priorities, leading to a decline in the percentage of adults ages 30 to 34 who have children, from 60% in 1993 to 27% now. Despite these difficulties, parents remain highly invested in the success of their children, with 71% considering their children’s successes or failures as indicators of their parenting quality.
The report also highlighted the relationship dynamics between parents and young adult children. Only 9% of young adults felt their parents were too involved, while 22% felt their parents were not involved enough. Additionally, the study found that mothers tend to have stronger connections with their young adult children compared to fathers.
If you are a parent who is still financially assisting your young adult children or a young adult who relies on your parents for money, feel free to reach out to this reporter at [email protected].
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- Most parents are still giving money to their young adult kids, survey found (businessinsider.com)