Many U.S. parents are sacrificing their own financial stability to help their adult children succeed. A recent survey from Bankrate found that nearly 70% of parents with kids aged 18 or older have made at least one financial sacrifice. The most common? Tapping into emergency savings. Over half of surveyed parents admitted to using their savings, while others delayed paying off debt or even put their retirement plans on hold.

Millennials and Gen Z have faced tough financial challenges, from the Great Recession to the COVID-19 pandemic, making it harder to achieve financial independence. Skyrocketing home prices and student loan debt have only added to their struggles. That’s why parental support often continues well beyond age 18. According to Bankrate, most Americans believe kids should start paying their own way between ages 20 and 23. However, Gen Z tends to expect help for longer, while Baby Boomers believe kids should become financially responsible sooner.

Is financial help a blessing or a burden?

While many millennials feel financially stable thanks to parental help, experts warn against parents sacrificing their own security. Research from Ameriprise Financial found that 78% of millennials received financial support from their families, including help with college tuition, home down payments, and even inheritances. For some, the support was substantial—27% received at least $25,000. Living with parents has also provided savings opportunities for many young adults.

However, financial advisors caution against parents jeopardizing their own future. Marcy Keckler, a senior financial strategist, compares it to putting on an oxygen mask first before helping others. “I completely understand the desire to support young adult children,” she says, “but it’s also important for them to feel the pride of standing on their own two feet.” Striking a balance between helping children and maintaining financial security is key.

Interestingly, while baby boomers often get credit for supporting their millennial kids, it’s actually Gen X parents (ages 43 to 58) who are more likely to make financial sacrifices. Additionally, lower-income households earning under $50,000 per year are more likely to take financial hits for their children compared to higher earners.

While helping children financially is a generous act, it can become a long-term problem if it risks parents’ financial well-being. Bankrate’s senior analyst Ted Rossman warns that if parents overextend themselves, they could end up needing financial support from their children later in life. The cycle of financial dependence can continue if families don’t set boundaries and plan wisely. As with many things in life, balance is everything.

Last modified: February 26, 2025