INDIANAPOLIS — Almost half of parents are helping their adult kids pay their bills.
A study by Savings.com found that the average monthly contribution comes to $1,384.
When broken down by generation, the average monthly contribution received by Generation Z (ages 18 -27) is $1,515. For millennials (ages 28-43), it is $907 and Generation X (ages 44-59) it is $960.
The adult children in this study receiving financial assistance does not include adults with a disability.
The most common costs covered by parents include groceries, rent and cellphones.
The study adds that this year, 58% of parents agree that they sacrificed their own financial security to help their adult children. In 2023, the number was 37%.
Before offering to help an adult child with their obligations, look at your finances first. Make sure you are not jeopardizing your retirement or buried in high-interest debt, like a credit card.
If you learn that you cannot afford to help them out, look to other assistance. Make them meals, help with a job search, maybe let them live at home for a period of time.
If you can afford to help them out, Kimberly Palmer, with NerdWallet, said it is important to set boundaries.
"Maybe there's an end date that you say to them, 'OK, I can help you for the next two months or up until a specific date.' But it's not just endless because that can go on and cause financial stress," Palmer said. "The ultimate goal here is to help your adult children become financially independent."
Palmer added that if you are helping out an adult child, it is important to be in constant communication. Avoiding the topic could hurt your personal finances in the future.
"If you run out of money in retirement, you can't take out loans to pay for retirement," Palmer said.