A new research reveals that fifty nine percent of mothers and fathers are still sometimes giving financial support to their adult children who are not students. The study indicates the recession is stopping them from moving away from home. Also examined were so-called “boomerang kids,” or those that move away from home only to come right back again.
A ton of pressure being put down
President and CEO of NEFE, Ted Beck, said, “Parents are continuing their involvement longer than we expected. The general sentiment is that financial pressures are higher for this generation.”
Parents and the young adults surveyed agreed. Of the grownup kids surveyed, 65 percent said their financial strain is harder than their parents’ was. This was something only some of the adults agreed with though. Only 32 percent felt this way. About 43 percent of the adults said they were “legitimately concerned” about their children’s finances. About 37 percent of individuals said they hoped their kids wouldn’t have to struggle financially.
The lion’s share of parental support, at 50 percent, is in housing. Living expenditures were also a big one. About 48 percent went towards these expenditures. There is also the cost of transportation. That is about 41 percent of aid from mothers and fathers.
About 42 percent of those kids who still live at home say they cook and clean to help contribute. About 75 percent said they helped financially.
Other factors involved
”Face It” author, psychologist Vivian Diller, thinks that this trend has occurred because of the economy. “In the last 20 to 30 years, the family structure has become more child-centered,” she says. “Boomer parents were very willing to make sacrifices for their kids, giving them the sense that it would continue until they were on their feet. Now parents are supporting kids’ lifestyles.”
But, she warns, continued fiscal assist could have negative consequences. “Because they have been protected, some children don’t learn reasonable ways to manage money, and they run into trouble.”
How parents sacrifice
Thirty percent of mothers and fathers that were surveyed say they have given up privacy due to adult kids moving back home. And 26 percent have admitted to taking on additional debts. Another 7 percent say they have been forced to delay retirement.
“If parents are going to financially support their adult children, they should first have a serious talk about their kids’ expectations so that everyone protects their financial futures,” Ted Beck says. “We all want to ensure the best for our children. But if you are taking on extra debt or delaying retirement to help your adult child, you could be making a mistake and putting your own financial future in jeopardy.”