It’s not uncommon to hear of parents helping out children when it comes to financial support, but what’s less common is hearing of children helping parents - or is it? A new study from TD Ameritrade details some numbers that most will find shocking.
The Numbers Don’t Lie
According to the aforementioned report, 22% of Americans currently provide financial support to other family members. Many of these supporters are young adults that are helping financially struggling parents - despite the fact that most young adults are in debt. Roughly $12,000 in financial support has been handed out to family members over the past 12 months - that’s nearly $630 billion dollars!
It may seem like those family members helping other family members must have the funds to do so, but this is not the case. In fact, most financial supporters already have nearly $100,000 in debt (mostly credit card and mortgage debt). So how can a family member that doesn’t have any extra funds help support another family member? Study participants noted that they often cut back on extra expenses, and some use savings account dollars to help family members in need.
Interestingly, the study also notes that most people helping family members do not mind doing so.
Who’s Getting the Support?
As it turns out, most financial support goes directly to parents with mothers getting more money from children than fathers. The numbers state that mothers receive around $5000 more in support funds than fathers do. Why are so many parents in need of financial support? It’s hard to pinpoint the exact cause, but one reason might be that people are living longer today than ever before.
Retirement dollars that once stretched well into a person’s golden age are no longer sufficient. This often results in parents asking children for financial help. With this in mind, children today now have to plan not only for their own retirement but for the financial support that may be needed by parents with dwindling bank accounts in the future.
It is essential that you plan well into the future and account for things like supporting a parent or two that need your help down the road. If you are currently supporting your parents and have too much debt of your own, it is possible that bankruptcy might be a viable solution. If you are considering bankruptcy, make sure to contact us today for your FREE case evaluation. Call us at (800) 391-4337 or schedule a consultation online.