Financial Planning for Gen X Parents Concerned About Supporting Adult Children
As Gen X parents plan for their financial future, they are increasingly worrying about supporting their adult children. A recent survey found that 53% of Gen X parents are concerned about needing to provide financial support to their children well into adulthood, compared to just 37% of parents across all generations.
Rising education, housing, and healthcare costs have created economic challenges for Gen Z and younger generations, making it difficult for them to achieve financial independence. Gen X parents are also grappling with the pressure of supporting both their aging parents and adult children, a phenomenon often referred to as the “sandwich generation.”
Family wealth coach Tom Thiegs notes that Gen Xers have grown up during a time of economic uncertainty, witnessing four of the five largest stock market crashes in history. This experience has led to a heightened sense of awareness and anxiety about their financial futures and the ability to support their children.
While Gen X parents are not necessarily worried about their children’s ability to manage their finances, they are concerned about external factors such as rising living costs and the difficulty their children face in finding good jobs. In fact, a recent survey found that 79% of Gen X parents believe their children are able to successfully manage their finances.
However, the survey also found that parents are willing to help their children financially, with an average monthly contribution of $1,384 per child. This can be a challenge for Gen X parents, who are balancing their own financial goals and retirement savings with the desire to support their adult children.
Certified financial planner Marguerita Cheng suggests that parents set boundaries and limitations when helping their children financially, avoiding the depleting of their own savings and retirement funds. She also recommends having clear guidelines and open communication to remove the stigma around discussing money and financial decisions.
Ultimately, Gen X parents are thinking differently about their finances, considering the needs of their children and other family members in their long-term financial planning. With the rising costs of education, housing, and healthcare, it’s no surprise that they are concerned about supporting their adult children into the future.