'Bank of Mum and Dad' Strained: 50% of US Parents Fund Their Adult Children $1474 Monthly

The long-standing joke about the 'Bank of Mum and Dad' just got a serious upgrade. According to a new report, 50% of American parents now financially support their adult children, with the average monthly contribution hitting a three-year high of $1,474 (roughly £1,160). But behind the growing generosity lies a complicated picture of rising costs, intergenerational pressure, and simmering parental burnout.

The survey, conducted by Savings.com, explored how 1,000 parents across the United States are continuing to dig deep into their wallets to help their adult offspring. While many see it as a duty, more than 40% say they plan to end financial support within the next two years, suggesting patience—and resources—may be wearing thin.

Financial Lifeline or Emotional Crutch?

Rising inflation, student debt, housing costs, and economic uncertainty have all contributed to young adults leaning more heavily on their parents. The study found that Generation Z (ages 18-28) receives the lion's share of support, with Millennials (ages 29-44) following behind. For Gen Z, many of whom are still studying or at the start of their careers, parental funding covers everything from tuition and groceries to holidays and mobile phone bills.

The most common expenses parents cover include:

• Groceries: 83% of parents help, averaging $220/month
• Mobile phone bills: 65% of parents contribute, averaging $63/month
• Rent or mortgage support: 63% assist, shelling out a hefty $653/month
• Healthcare and insurance: 54% contribute, often covering gaps in young adults' coverage

Perhaps most surprisingly, 46% of parents are funding their adult children's holidays, suggesting that support extends well beyond the bare necessities.

Parents Paying More into Kids Than Their Own Retirement

The most troubling trend? Parents still in the workforce are putting more than twice as much money into their adult children each month than into their retirement funds. That's a red flag, particularly as nearly 80% of these parents admit they worry about their ability to retire comfortably.

And the emotional toll isn't insignificant either. Over 60% say they've sacrificed their own financial security for the sake of their children. Half have pulled funds from savings or retirement pots. One in three say they'd even delay retirement to keep financially supporting their kids.

Tough Love on the Rise: Conditions Are Being Set

But the tide may be turning. This year, 77% of parents said they place conditions on their support. That's up from 71% last year. The most common stipulations include actively looking for work, staying in education, or contributing to household expenses if they live at home.

And these rules seem to be working. The number of adult children living at home and contributing financially to the household jumped from 39% last year to 51% this year. It signals a shift in mindset: support is still available, but it's no longer a free ride.

What's Driving This Parental Generosity?

Partly, it's emotional. Over half of all supporting parents say they feel obligated to help their children financially. The instinct to protect and provide runs deep, especially when wages haven't kept up with inflation and the housing market feels out of reach for many young adults.

But it's also societal. Millennials and Gen Z are facing a dramatically different economic landscape than their parents did. From astronomical tuition fees to unaffordable rent and volatile job markets, the traditional milestones of independence—buying a home, paying off student loans, or starting a family—have become increasingly delayed or unreachable without support.

The Future of the Family ATM

Perhaps the most telling stat from the entire report is this: only 19% of parents plan to support their children indefinitely. That means the clock may be ticking for many adult children still reliant on their family safety net.

As economic uncertainty under President Trump's second term continues, and with interest rates and living costs showing no signs of falling, we may see more tension build between financially stretched parents and adult children striving for independence. Whether the 'Bank of Mum and Dad' remains open for business much longer may depend on just how resilient—and generous—this generation of parents truly is.

For now, many parents appear willing to make sacrifices, but not without boundaries. The days of no-strings-attached support may be fading, replaced by a tougher, more conditional kind of love. And for adult children still relying on the lifeline, it may be time to consider a plan B before the bank closes for good.