Our clients Ameriprise Financial just released more results from the Parents & Finances study we conducted for them earlier this year. We conducted this research among more than 3,000 American parents with at least one child age newborn to 30 with the goal of exploring how these parents approach money as their children grow. The results help us understand parents’ goals, concerns, and perspectives. This data looked at a subset, the over 500 respondents who have children 18 and over.
A key finding: Two-thirds (65%) of parents believe they’ll have enough money to live comfortably in retirement, yet over a third (36%) worry that supporting adult children financially could impact their plans.
More results include the following:
- Three-quarters (76%) are footing the bill for their children’s one-time goals, such as a wedding or down payment on a home and more than six in 10 (63%) are covering ongoing expenses like living costs and phone bills for their children ages 21 and older.
- Nearly half (45%) are paying for their adult children’s health insurance costs until the legal age limit.
- A third (33%) are contributing to their children’s education beyond college, including graduate school.
- Nearly all respondents (98%) reported they would let their children live with them after they turn 21 years old.
Parents & Finances
This spring, Ameriprise released bigger picture results, including that parents today are balancing competing priorities, with many goals vying for their hard-earned dollars as well as their time. Nearly all respondents said parenthood brings them joy and purpose (96%) yet is harder than they expected — both emotionally and financially.
Check out this newest Parents and Finances press release on Business Wire and see the full study summary here [PDF]. USA Today covered the recent subset findings, too.
We’re lucky to have been working with Ameriprise for years; as an example, late last year they published segmentation research we did to profile different personalities in retirement.
Photo by Bence Halmosi on Unsplash
