young adults

Most Young Adults Are Still Supported By Parents According To New Survey

Recent studies from the Pew Research Center reveal that a significant portion of parents nationwide continue to financially assist their adult children.

Business Insider reports recent studies from the Pew Research Center shed light on the financial dynamics between parents and their adult children, revealing that a significant portion of parents nationwide continue to financially assist their children well into their young adult years, including their 20s and 30s.

In the past year, around 59% of parents extended financial assistance to their young adult children aged 18 to 34, as revealed by studies conducted through surveys in October and November 2023. The research gathered responses from 3,017 adults and 1,495 young adults.

The study emphasized a significant aspect, indicating that 45% of surveyed young adults regarded themselves as financially independent from their parents. This pattern was particularly pronounced among the 18- to 24-year-old age group, where 57% reside in their parental homes—a noteworthy surge compared to the statistics recorded in 1993.

The study also explored how the financial interdependence between parents and young adults affects their living arrangements. Nearly two-thirds of young adults living with their parents reported positive impacts on their personal finances, with 72% contributing financially to household expenses such as utility bills or rent.

According to the study, despite consistent support, 75% of those depending on parental financial assistance anticipate achieving eventual financial independence.

The report explored the financial constraints faced by high earners, not rich yet (HENRYs), earning six figures but grappling with student loans, housing costs, and other financial burdens. A significant 20% of first-time homebuyers received financial aid from relatives or friends.

Furthermore, the study underscored shifting demographic trends among young adults, revealing heightened education levels and higher full-time employment rates compared to their parents at the same age. Despite these advancements, they confront financial hurdles, prompting choices like delaying family planning and implementing spending cutbacks.

Despite these challenges, parents remain highly invested in their children’s success, with 71% stating that their children’s successes and failures reflect the quality of their parenting. The study also explored the delicate balance parents maintain between involvement and non-involvement in their children’s lives.