Wednesday, February 05, 2020

Giving Money to Adult Children, Aging Parents

Many midlife adults have it tough. Some are the parents of adult children who are not yet financially independent. Others have aging parents who are struggling to make ends meet in retirement. To help out, millions of midlife adults are giving them money.

AARP recently took the measure of these millions, surveying people aged 40 to 64 with living parents and/or adult children aged 25 or older. Respondents were asked, "Have you given any financial support to your [parents/adult children] in the past 12 months?" Here's how many had...

Percent of adults aged 40 to 64 who have provided financial support in the past 12 months to...
Parents: 32%
Adult children: 51%

The support is substantial, too. Among those who gave money to a parent in the past year, 54 percent had given $1,000 or more and 20 percent $5,000 or more. The figures are similar for those who gave money to adult children—56 percent gave $1,000 or more and 25 percent gave $5,000 or more.

Is it a financial strain to provide this support? For many, not so much. Among those helping parents, 43 percent say it is little or no strain. For those helping adult children, 47 percent say the same. But a substantial 28 to 29 percent of those providing financial support say it is causing them high financial strain.

Source: AARP, Midlife Adults Providing Financial Support to Family Members

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