A recent study finds that 59 percent of United States parents are still sometimes supporting their non-student adult children. The research suggests the economic downturn is preventing them from moving away from home. Some of them are turning into so-called “boomerang kids,” by leaving home and returning again.
Strain higher for this generation
President and CEO of NEFE is Ted Beck. He said, “Parents are continuing their involvement longer than we expected. The general sentiment is that financial pressures are higher for this generation.”
This was something mothers and fathers and young adults surveyed agreed with. Sixty-five percent of the adult kids said their generation faces tougher fiscal strain than their parents did. And 32 percent of their parents agreed that they had it easier than their children do. About 43 percent of the adults said they were “legitimately concerned” about their children’s finances. Another 37 percent said they didn’t want their kids to struggle in the same way they had to.
All of the little pieces
Housing makes up most of parental assist. This is fifty percent of the support given. About 48 percent of parental financial pay for went towards living expenditures. About 41 percent of parental aid goes to transportation.
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.
What else is there?
The economy is the only reason for this trend, says psychologist Vivian Diller. She wrote “Face It” and is well known for the book. “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 pay for 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
About 30 percent of mothers and fathers that had adult children move home gave up privacy to do so. Even worse are the parents that took on debt for their children to move in. This involves about 26 percent of responders. Retirement was postponed by another 7 percent.
“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.”
Citations
ABC
abcnews.go.com/Business/60-parents-provide-financial-support-adult-children/story?id=13648780
NEFE
nefe.org/NEFENews/PressRoom/PressRelease/ParentsFinanciallySupportingAdultChildren/tabid/1015/Default.aspx
Reuters
reuters.com/article/2011/05/27/us-economy-parents-idUSTRE74Q4Y420110527
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