Gen X parents are more worried about financially supporting their kids into adulthood than parents of other generations. A recent U.S. Bank survey found that 53% of Gen X parents have this concern, compared to just 37% of parents overall. Gen X has faced unique economic challenges that contribute to their heightened worries.
They have lived through four of the five largest stock market crashes in history. They have seen the cost of living steadily rise. And they have faced a tough job market.
Despite these challenges, Gen X parents don’t necessarily think their kids are bad with money. In fact, 79% believe their children can successfully manage their finances. The economic stress comes more from factors outside of the parents’ or children’s control, like rising housing costs.
Gen X’s financial support concerns
In response, Gen X parents are providing more financial support to their kids. The survey found they give an average of $1,515 per month to their children, compared to $1,384 across all parents.
Financial experts caution Gen X parents against helping their kids so much that they deplete their own savings. “I would never tell you not to help your child,” said Marguerita Cheng, CEO of Blue Ocean Global Wealth. “But it’s important to have boundaries or limitations to giving.”
Cheng advises families to have open conversations about finances.
She also suggests letting go of the stigma around money decisions, like living at home after college. While concern is high among Gen X parents, they aren’t paralyzed with worry. Tom Thiegs, a family wealth coach, noted that his Gen X clients seem wary but determined.
“It’s not just all doom and gloom for Gen X,” he said. “There’s also this understanding that we’ll be able to figure it out.”
