The Bank of Mom and Dad-Parents Financially Assisting Adult Kids

Ken Dychtwald, Ph.D., gerontologist, psychologist, CEO of Age Wave, a company that conducts research on issues relating to aging populations discussed his recent survey that uncovered the staggering amount of financial support that parents are providing to their adult children. He found that 79% of parents are providing money to their children between age 18 and 34, and the average was $7,000 a year. He said that figure is twice the amount that parents are putting into their own retirement accounts. He explained the possible reasons behind this trend.