With the cost of living steadily increasing, nearly one-third of millennials and Gen Zers over age 18 are getting financial support from their parents, according to a new survey cited by CNBC.
What’s going on: In a recent poll by personal finance site Credit Karma, “[m]ore than half of parents with adult children said their kids are living with them. Another 48% said they pay for their kids’ cell phone plan, car payments or other monthly bills.”
- “Nearly a quarter also said they provide their adult children with a regular allowance, pay some or all of their rent or have them as an authorized user on their credit card, the report found.”
Why it’s happening: Most of the adult children living with their parents did so because they had no other option or wanted to save money.
- Student loan debt and high housing costs are some of the primary causes of this financial hardship.
Historic household makeup: “The number of households with two or more adult generations has quadrupled over the past five decades, according to a separate report by the Pew Research Center based on census data from 1971 to 2021. Such households now represent 18% of the U.S. population, it estimates.”
- Now nearly one-quarter of young adults live in a multigenerational household.
Hard on parents: The majority of parents who give monetary support to their adult children say “it causes them financial stress.”