Are you giving more money to your adult children than you are to your retirement plan? For many Americans, this is the tradeoff they're facing. According to a report by Merrill Lynch and Age Wave, U.S. parents spend $500 billion a year on their 18- to 34-year-old adult children – twice the amount they contribute to their retirement savings.
Seventy percent of adults between the ages of 18 and 34 received some sort of parental financial support in the last year, with over half of those between the ages of 30 and 34, the report states. More than half of all millennials acknowledge that they could not afford their current lifestyle without the financial support of their parents.
What are parents paying for? The report shows that they aren’t just helping their grown children with emergencies. Some 60 percent are covering food and groceries, 54 percent are covering cell phones, and 47 percent are helping with car expenses.
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