6 Expenses Gen Z’s Parents Are Paying for Them the Most
Written by
Kellan Jansen
Edited by
Molly Sullivan
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Nearly half of Gen Z adults now rely on financial help from parents — significantly more than other generations. From groceries to cellphone bills and beyond, a new study has revealed the top expenses these young adults are getting support with.
Keep reading to learn how the averages compare to your children and what steps you can take to prepare them for financial independence.
The New Costs of Adult Children
According to a Savings.com study, parents who support their adult children spend an average of $1,474 on them every month. That number soars to $1,813 for parents of Gen Zers but drops to just $863 for parents of millennials. This shows that parents are spending more on adult children who are closer to 18 and freshly independent.
Unfortunately, providing this financial assistance has come at a cost. Working parents now average $673 in monthly retirement savings contributions while spending $1,589 on financial support for adult children.Â
So, older generations are putting their retirement plans on the back burner to help their kids establish themselves. No wonder this group is more anxious about setting themselves up for a comfortable retirement than those who don’t support adult children.
6 Expenses Gen Z’s Parents Cover Most
In addition to looking at average contributions, the Savings.com study highlights the expenses parents pay most frequently for their adult children. That list includes:
- Groceries and food: 87% of parents providing support, averaging $220 monthly
- Cellphone bills: 73%, averaging $63 monthly
- Health insurance: 69%, averaging $165 monthly
- Rent or mortgage: 66%, averaging $653 monthly
- Tuition and school expenses: 57%, averaging $1,198 monthly
- Leisure and vacations: 56%, averaging $190ly
Many parents of Gen Zers also help with car payments (49%, averaging $218 monthly) and discretionary spending (47%, averaging $126). This all adds up to thousands in financial assistance for many parents of adult children.
Preparing Your Kids for Financial Independence
As a parent, you want to help your kids succeed — financially and otherwise. But if doing so is holding you back from achieving your goals, it may be time to create a plan for moving forward. You can ease your children into financial independence by slowly cutting back the amount you give them. For example, you might start by stopping your support for discretionary spending and travel. Then, you could tell your kids to plan to pay their own phone bill and health insurance within a year.
Some families also put conditions on the support they offer. For example, you might be willing to help an adult child pay off their car as long as they’re using it to drive to work. Or you could help a kid pay off past-due credit card bills as long they’re not accumulating more debt.
Ultimately, preparing your Gen Z children for financial independence is about setting clear expectations for your support. You can do that by asking your kids to meet conditions or just letting them know in advance when your support will end so that they can prepare.
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