Survey: 79 percent of parents financially support adult children
NEW YORK — Despite a strong economy and low unemployment many adult children are leaning on their parents for financial support.
A Merrill Lynch survey last year found that 79% of parents financially support an adult child between the ages of 18 and 34. Some have their kids living at home. Others are paying their children’s bills. 25% said they would be willing to draw from retirement savings to do it.
CBS News Business Analyst Jill Schlesinger says high student debt and low wages for entry level jobs are big reasons why many young adults are depending on their parents.
“You want to help your kids. You don’t want to enable them,” she said.
Schlesinger suggests having a conversation with your kids and set some boundaries and ground rules like setting a move out date and having adult children contribute to rent, utilities and groceries.
“Really what you want to do as a parent is create this independent adult child,” she said.