Are Parents Ready to Keep the Bank of Mom and Dad Open?
When current and future parents consider the cost of raising children, they should account for the financial support now often extended well into their kids’ adult years.
How much money can you spare?
Photographer: Chris Ratcliffe/BloombergYoung Americans are having trouble becoming fully independent adults. Millennials, who were long ridiculed for being boomerang kids who scurried back to mom and dad’s basement after leaving the security blanket of college, know a thing or two about that.
But the failure to launch trend is continuing with Gen Z, the latest cohort of 20-somethings taking out cash from the Bank of Mom and Dad. Over half of the adults in the generation reported that they don’t pay for their own housing, according to a 2024 Bank of America study. In fact, parents of adult Gen Zers expect to give their children $1,813 a month in 2025, based on a March report by Savings.com. It’s the highest level in three years and includes expenses for groceries, cell phones, rent and utility bills.