As young adults in the millennial and Gen Z generations face various financial challenges, many parents are stepping in to provide financial support. A recent report found that nearly half of parents with children older than 18 provide some form of financial assistance, with an average monthly amount of $1,384.
Despite the support from parents, young adults are still facing obstacles such as soaring living costs and high student loan balances. This has led to a situation where 61% of adult children living at home do not contribute to household expenses at all.
While it is important for parents to support their children, it is also crucial for them to prioritize their own financial security. Financial experts recommend setting boundaries and creating a balance between supporting children and meeting their own retirement goals.
Setting parameters and agreeing on a deal with children can help ensure that both parties are working towards financial stability. This could include children contributing a percentage of their salary to a retirement fund or making other financial decisions that support their future.
In the end, it is essential for both parents and children to communicate openly about financial matters and work together to achieve financial security. By setting clear boundaries and goals, both parents and children can navigate the complexities of financial support in a way that benefits everyone.
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