Study reveals states where parents pay more to support adult children
FILE-In this photo illustration, a person holds a wallet filled with $20 dollar bills. (Photo Illustration by Thomas Trutschel/Photothek via Getty Images)
The cost of living has soared, leaving some adults to seek financial help from their parents to cover basic needs. And a new study looks at how much of a norm this is in the U.S.
USA Today released a poll of parents of Gen Z and Millennial adults in states with populations of 2 million people or more to determine where adult kids receive the most financial assistance from their parents.
The report revealed that 65% of parents are giving money to their kids between the ages of 22-40. Roughly 65% of parents said they still give their children money, with the average amount monthly at $718.
California was the top state where parents provide the most money to their adult kids, followed by Washington at 2, Virginia ranking third, New York claiming the fourth spot, and Ohio finishing fifth.
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According to the study, parents in California, Washington and Virginia average over $800 monthly for financial help for their adult children, while those in Iowa contribute an average of just $349 per month.
Additionally, parents in North Carolina, Pennsylvania and Wisconsin are least likely to offer financial support to their adult children.
Money allocated to the adult kids by their parents covers expenses like groceries, rent, cell phone plans, utilities, and clothes.
Here are the states where parents are financially helping their adult kids the most.
States where parents provide most financial support to their adult children
- California-$869.50 per month
- Washington-$853 per month
- Virginia-$841.20 per month
- New York-$761.10 per month
- Ohio-$759.20 per month
- Massachusetts-$705.10 per month
- Illinois-$697.40 per month
- South Carolina-$683.40 per month
- Texas-$671.20 per month
- Utah-$667 per month
The study also showed that the average parent believes their children should be financially independent by 24.
While some parents are willing to help their kids financially, most say there are certain conditions that their children have to meet to get the money.
According to the study, 43% of parents still support their adult children without conditions, compared to 74% of parents who put stipulations on their financial help, meaning their kids must have a job, go to therapy or avoid "risky behaviors."
Moreover, only 31% of parents say there is a time limit for how long they will help their kids financially.
Separately, 1 in 3 parents still helping their adult kids admit continuing to shell out cash to them creates a financial strain.
This story was reported from Washington, D.C.