Millennials And Gen Z Rely On Parents For Financial Support, Survey Finds It's Costing Them Their Retirement And Future Security

It's no secret that Gen Z and millennials are feeling the financial pinch, but let's be real – their parents aren't exactly living in the lap of luxury. 

According to a recent Bankrate survey, nearly 70% of parents are helping their adult kids financially. Parents are delaying retirement, raiding savings and making sacrifices all while their adult children struggle to find a financial foothold. And if you thought that was a win-win, think again – it's more like a "vicious cycle" where everyone's broke and no one knows when (or if) they'll get out.

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The most common financial hit for parents is their emergency savings, with over half of respondents in the survey reporting they've used them to assist their adult children. 

The Broke Life Crisis

Financial independence is more of a dream than a reality for millennials and Gen Z. Between skyrocketing living costs, stagnant wages and that mountain of student loan debt, they're barely scraping by. A Bank of America report highlights that nearly half of Gen Zers between 18 and 27 lean on their parents just to survive. Think of it like a financial safety net, but this one's been patched, restitched and might be on the verge of tearing apart at the seams.

It's tough out there. Rent's high, food costs are up and gas? Well, let's just say no one's going on spontaneous road trips anymore. But it's not just about making ends meet. Many young adults are caught in the cycle of wanting to live their best life but realizing they're one paycheck away from moving back into their childhood bedroom.

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Parents: The Unsung (and Unpaid) Heroes

While young adults are busy balancing on the edge of financial doom, their parents are swooping in to save the day – only, they're doing it at the expense of their own retirement dreams. According to the Bankrate survey, nearly half of parents are delaying paying off their debt or even dipping into retirement savings to help their kids. It's like the financial equivalent of handing over the life raft while sinking with the ship.

Sure, it's noble, but as Ted Rossman of Bankrate warns, this financial help could backfire. Parents might find themselves needing help later from – you guessed it – the same kids they're bailing out now. What goes around comes around and in this case, it's debt, not karma.

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Generational Guilt and Expectations

There's also the emotional baggage that comes with all of this. Many young adults feel guilty about asking their parents for help – no one wants to feel financially burdened. But when push comes to shove, they don't have much choice. Add to that a cultural shift where Gen Z isn't rushing to pick up their financial reins and you've got an awkward dance between independence and dependence.

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Breaking the Cycle

So, what's the solution? Parents need to draw a line in the sand regarding financial help. Prioritizing retirement and saving for the future is critical. As much as they love their kids, no one wants to be 75 and wondering if it's too late to start planning for retirement.

For millennials and Gen Z, it's time to tighten the belt and get serious about financial literacy. There's no magic fix, but learning how to budget and manage credit now might save them from someday repeating this cycle with their kids. 

The key to breaking the cycle is balance. When parents sacrifice their future to help their kids, nobody wins – and everybody stays broke. 

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