As parents, we know our job doesn’t end on their 18th birthday. But for many parents of adult children, financial support is now stretching well into their child’s middle age. According to 2025 data from Savings.com, half of parents with adult children provide at least some financial support, a three-year high.
Parents of adult children ages 18-28 give an average of $1,813 monthly, while parents of those 29-44 provide $863 monthly. This help often includes covering recurring expenses like phone bills, car insurance, health insurance, or even student loan payments (1).
Rising housing prices, higher grocery bills and student loan debt have made it harder for young adults to hit traditional milestones. As a result, parental financial support is becoming the norm, even for adult children with full-time jobs.
While parents want to help their kids stay afloat in a tougher economy, financial advisors warn that ongoing support can create long-term risks for both generations. Here’s what you can do if you’re caught between wanting to help your adult children financially, and worrying about setting aside enough for your own retirement.
Helping adult children isn’t inherently a bad thing, and for many families it feels necessary. The concern, experts say, is how the help is structured and how long it lasts.
Some parents may be undermining their own retirement security without even realizing it. Dipping into savings or delaying retirement so your children don’t have to take on debt can backfire, says Kayla Walter, a certified financial planner at Bailey Wealth Advisors in Maryland. She points out that there are loans for education, but not for retirement.
“You’re blowing through your savings at a much faster rate, and it’s not going to last you as long as maybe you intend to live,” she says (2).
Another issue is that ongoing, open-ended support can unintentionally stall a child’s financial independence. Covering monthly bills like insurance, rent or utilities may ease short-term pressure, but it can also delay kids from making difficult budget decisions on their own.
A recent MarketWatch story highlighted a 27-year-old financial advisor whose mother currently covers her $191 monthly car-insurance bill after she purchased a new car. While both sides are currently satisfied with the situation, there’s no clear end date (3). Over time, that type of open-ended support can lead to resentment and long-term financial challenges for both generations.
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Helping adult children financially isn’t just a financial decision — it’s also an emotional one, and that can make it tricky to navigate. The key, experts say, is to be intentional about the support you offer and to find ways to help them stand on their own. Here’s how to get started:
Before giving money, make sure your own finances are in order. Make sure retirement contributions are maxed (or on track), high-interest debt is managed and you have a six-month emergency fund. You won’t be able to help your kids at all if you end up in a bad financial spot.
Talk openly about your own finances, what you can afford, and even past mistakes you have made. These conversations will help them understand boundaries you set later, and may encourage them to take a deeper look at their own finances.
Review your own finances and decide what you can and can’t offer. Maybe you’re able to cover one-time costs like security deposits or a car repair, but can’t commit to monthly bills indefinitely. Whatever your limits are, be clear and direct about the support you’re comfortable offering.
A lump-sum gift or a family loan with written terms can be easier to manage than recurring expenses. Some advisors suggest using the annual gift-tax exclusion, $19,000 per recipient in 2026, as a natural boundary (4). This strategy can allow you to support your children without taking on monthly bills for an undetermined amount of time.
If you need to reduce support, taper it. For example, if you currently cover $500 in bills a month, cut back to $400 for a few months, then $200, and work your way down to $0. This gives your children time to adjust and may help ease any feelings of guilt.
Covering bills can provide short-term relief, but it doesn’t always move adult children closer to long-term independence. Look for ways to pair financial support with skill-building. That might mean reviewing a budget together, talking through financial goals, reading a money book and discussing it or sharing a trusted podcast or resource. You likely won’t be able to help forever, so the goal should be to help your kids build healthy financial habits (4).
Today’s financial landscape looks very different from what many parents faced 20 or 30 years ago, and offering financial support into adulthood can help level the playing field. Still, support works best when it’s intentional. Making sure your own finances are secure and that your help encourages independence rather than reliance.
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Savings.com (1); News Nation (2); MarketWatch (3); CNBC (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
