Why more parents are supporting their adult children financially

Adults with grown children are often still helping support them financially. And sometimes, those contributions take away from the funds they would otherwise be saving for retirement.

According to a recent Savings.com survey of 1,000 U.S. adults with grown children, half regularly assist them financially. Those numbers are going up in recent years. On average, parents are shelling $1,474 monthly to help their adult children, which is about 6% more than they provided the previous year.

More than 80% said they helped pay for groceries; 65% said they foot their grown child’s cellphone bill; and nearly half (46%) even fund their adult children’s vacations.

Those monthly contributions add up, coming out to a contribution of around $17,688 per year—around twice as much as they’re putting into their own retirement savings. Nearly half (47%) say they’ve sacrificed their own financial well-being and preparedness to help their grown kids find their footing. 

While older generations are often quick to call Gen Zers lazy or entitled, young workers are at a financial disadvantage. Not only are unemployment rates rising for recent college graduates, but an increasing number are underemployed. 

And, according to LinkedIn’s 2025 Grad Guide, college graduates are more frequently taking jobs that don’t typically require degrees. In fact, the fastest growing field for college graduates is construction. Real estate, utilities, wholesale, and administrative service jobs are up for the group, too, suggesting that four-year-degrees are not necessarily helping graduates land higher-paying jobs as often as they once did.

Parents seem to know that their adult children are up against big challenges, which is likely why so many help pay their bills. Forty percent said they felt pressured to give to their grown children even when it negatively impacted their own stability, and 35% said they feel it’s their responsibility to provide that support. 

Some say they’ve set deadlines for when they will stop funding their adult children’s lives. Eleven percent plan to cut the cord within a year; 26% within one to two years; and 28% three to four years down the line. However, for some, the commitment is for life. Around 18% say there is no deadline at all for their grown children to become financially independent.

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