Half of American Parents Financially Support Adult Children—But at What Cost?

Quick Answer: Yes, about 50% of American parents provide financial support to their adult children, spending an average of $1,474 per month. While well-intentioned, this generosity often comes at the expense of parents’ own financial security and retirement savings. Experts recommend setting boundaries, distinguishing between essentials and luxuries, and prioritizing retirement planning to avoid long-term consequences.

The Growing Trend: Parents Funding Adult Children

A new study from Savings.com reveals that half of U.S. parents are regularly covering expenses for their adult children. On average, parents contribute $1,474 each month, helping with essentials such as:

• Groceries (83%)

• Rent or housing costs (63%)

• Vacations and leisure (46%)

This trend highlights a generational shift where parents are stepping in to bridge the financial gap for their children, many of whom are struggling with inflation, student loans, or the rising cost of living.

The Hidden Cost: Parents Risking Retirement

While the support may feel necessary, it comes with major risks:

• 47% of parents sacrifice their financial security.

• 35% delay retirement to continue funding their kids.

• 31% take on debt to cover expenses.

This is especially concerning because 40% of Americans have no retirement savings at all. For many parents, the choice to prioritize their children today could lead to financial instability tomorrow.

Why Parents Keep Helping

Experts note that cultural expectations, financial challenges facing millennials and Gen Z, and even parental guilt all play a role. Parents want to provide stability—but ongoing financial help can unintentionally create dependency, making it harder for children to build independence.

How Parents Can Support Without Self-Sabotage

Helping your adult children doesn’t have to derail your retirement. Financial planners suggest these strategies:

• Prioritize Essentials Over Luxuries

  Cover necessities like food, housing, or healthcare if needed—but say no to luxury expenses such as vacations, new cars, or designer purchases.

• Set Clear Boundaries

  Define what you will and won’t cover. Consider a “weaning plan” where support gradually decreases over time, encouraging independence.

• Protect Your Retirement First

  Think of the airplane rule: secure your own oxygen mask before helping others. Funding your retirement ensures you won’t become financially dependent later.

• Encourage Self-Sufficiency

  Instead of giving cash, consider helping with job connections, financial literacy tools, or short-term support tied to clear milestones.

The Bottom Line

Parents want to give their children the best chance at success, but sacrificing retirement savings isn’t the solution. The healthiest form of support empowers children while preserving parents’ financial future.

By setting boundaries and focusing on essentials, parents can strike a balance where both generations thrive without creating long-term dependency.