Nearly 40% of parents fear their children will need financial support as adults

Parents fear that their children will continue to need financial help when they grow up.

Nearly four in 10 (37%) parents of all generations fear their children will need financial support well into adulthood, a recent US Bank survey found. These concerns are among parents of the generation

In recent years, many people, especially younger people, have struggled with the rising cost of living due to rampant inflation. Higher interest rates as the Federal Reserve tried to curb rising prices caused many to fall behind on their car or credit card bills.

Earlier this year, a Bank of America survey found that 46% of adults in Generation Z — those typically born between 1997 and 2012 — received financial assistance from parents or other family members to cover essential expenses.

Families need to talk about finances

Advisers say some of these worries could be alleviated by families having more open conversations about savings, debt and inheritances.

“We hope these survey results spark a dialogue about the importance of families discussing difficult financial topics and ultimately empower more families to engage in the difficult conversations that are critical to building wealth,” Beth said Lawlor, president of Private and Affluent Wealth Management at U.S. Bank.

Although parents today are more than twice as likely to talk to their children about finances as their parents, they still don't feel comfortable having these conversations. According to the U.S. Bank survey, they would rather talk about politics and the 2024 presidential election (76%) than their own finances (63%).