Parents Are Losing Absurd Amounts Of Money Supporting Their Grown Children
I remember hopping into the car to head off to my freshman year of college and being incredibly amped to finally get out of the bumass town I’d spent my childhood in and not have to deal with constantly being under the watchful eyes of my parents. For the first time in my life, I had the chance to be truly independent— at least until I called home a few weeks later and asked them to send me money because no university offers classes on financial responsibility.
People have always relied on their parents to help support them in one way or another, but if common knowledge (and certain studies) are to be believed, millennials are too busy spending their money on avocado toast to construct a stable life for themselves (despite being one of the hardest-working generations). Thanks to crippling amounts of student debt and the rapidly deteriorating state of capitalism, many young people are forced to rely on their parents than ever before— and it might be hurting everyone involved more than you might think.
According to Market Watch, a study conducted by NerdWallet has discovered parents are losing a staggering amount of money by helping to support kids who are over the age of 18. While the numbers are likely skewed a bit by the ones with children who are still in school, the study showed that those who help pay for the living expenses of their Large Adult Sons (and other offspring) lose an average of $277,000 when you look at how much they could have made if they’d invested that money into a long-term investment account.
The article points to a few of the primary expenses that are covered by people trying to support their kids in any way possible:
The average parent now takes out $21,000 in loans for a college education for their child.
They are also paying for many basic, day-to-day costs for their adult children, including groceries (56%), health insurance (40%) and rent or housing outside the family home (21%). Some parents are also covering or have covered their adult child’s cellphone bill (39%) and car insurance (34%).
Be sure to remember exactly just how much your parents were forced to sacrifice when you’re deciding how nice of a nursing home to place them in when they’re old.