Does turning 18 automatically knock a kid off the family cell phone plan, or should you wait until a child graduates college? There are many schools of thought on when parents should stop paying for their children’s bills, and there is a generational divide on the “right” time for financial independence. Baby boomers, Gen X, millennials and Gen Z have very different thoughts on what age young adults should assume more financial responsibility.
According to a February 2023 Savings.com survey, 45% of parents support at least one adult child, and the average monthly price tag of that financial assistance is $1,400. It’s a tricky area to navigate, with inflation and high interest rates making it harder for younger generations to be financially independent at the same age as their parents or grandparents, but paying for bills too long could negatively impact parents. “It can put your own retirement and other financial goals at risk,” Bankrate senior industry analyst Ted Rossman warned in an April 2023 article.
