A recent U.S. Bank survey reveals that 53% of Generation X parents are concerned about providing ongoing financial support to their adult children - a notably higher percentage compared to the 37% average across all generations of parents.
The survey, which gathered responses from approximately 2,500 adults, highlights the unique financial pressures facing Gen X parents, who find themselves supporting both aging parents and adult children simultaneously.
This "sandwich generation" faces mounting concerns about their children's financial independence amid rising costs of housing, education, and healthcare. The economic landscape their children face appears particularly challenging, with many young adults struggling with job security.
A recent Savings.com survey found parents supporting adult children spend an average of $1,384 monthly, with that figure rising to $1,515 for Gen Z offspring. These costs often include housing assistance, education expenses, and general living support.
Tom Thiegs, family wealth coach at U.S. Bank's Ascent Private Capital Management, notes that Gen X's perspective on financial planning has been shaped by experiencing four of the five largest stock market crashes in history. They were also among the first generation to rely primarily on 401(k) plans instead of traditional pensions for retirement.
Despite these challenges, the survey indicates that 79% of Gen X parents believe their children can manage their finances successfully. The primary concern stems from external economic factors rather than their children's financial decision-making abilities.
Financial experts advise parents to establish clear boundaries when supporting adult children. Marguerita Cheng, CEO of Blue Ocean Global Wealth, recommends that parents avoid compromising their own retirement savings while helping their children. She suggests setting specific limits on financial assistance and maintaining open discussions about money management.
The shifting economic landscape has prompted many Gen X parents to take proactive steps. For instance, Adinah Caro-Greene, a 45-year-old employee benefits broker from the Bay Area, plans to secure a rental property for her Gen Z son's future use, recognizing the unique challenges facing younger generations.
This evolving approach to family finances reflects a broader trend among Gen X parents, who increasingly view financial planning needs as a holistic endeavor that encompasses both individual needs and family support structures.