The so-called “Bank of Mom and Dad” is a bit concerned they won't see a return on their investment.
More than half, or 53%, of Gen X parents are worried their children may need financial support into adulthood, according to a U.S. Bank survey. That's compared to 37% of parents across all generations who worry about the same issue.
It’s not because Gen X parents think their children make bad money decisions. The survey said 79% of parents think their children are capable of successfully managing their finances, as reported by CNBC.
Rather, Gen X parents tend to worry because they have lived through four of the five largest stock market crashes, seen the cost of living steadily rise and faced a tough job market, CNBC reported.
In response, they’re upping their financial support. A Savings.com survey found that Gen X parents were providing up to $1,515 a month on average to their children, compared to $1,384 across all parents.
Marguerita Cheng, CEO of Blue Ocean Global Wealth and a mother herself, cautioned Gen X parents to not help their children out so much that they deplete their own savings. She also advised that families have open conversations about finances and let go of the stigma surrounding money decisions.
While there is heightened concern among Gen X parents, Thiegs emphasized they aren’t “paralyzed” with worry. Instead, they just seem wary — but determined.
“It’s not just all doom and gloom for Gen X,” Thiegs told CNBC. “There’s also this understanding that we’ll be able to figure it out.”
