Almost half of parents with adult children have given them money since the beginning of the COVID-19 pandemic to help them cover emergency expenses, often sacrificing themselves to do so, according to a recent survey conducted by CreditCards.com.
The average is more than $4,100, and it is twice that for parents with higher household incomes.
For almost 8-in-10 who did, it was money that would have otherwise gone to their own bills, paying down their own debt, or contributing to their retirement savings.
For parents who have been able to do it, CreditCards.com recommends not treating it as a loan.
鈥淲hile I think it鈥檚 very admirable to help out your adult kids in a tough time, don鈥檛 let it hurt the relationship. We鈥檝e found that about half the time, lending to family and friends can go wrong. Somebody loses money, somebody鈥檚 feelings get hurt, something like that,鈥� said Ted Rossman, senior industry analyst at CreditCards.com.
He says helping out adult children in a pinch is perfectly fine. That鈥檚 what family is for. But not if it鈥檚 a chronic issue.
鈥淒on鈥檛 make this a pattern though. If your adult kid is constantly running short of funds at the end of the month, there might be a deeper spending or income problem here. Helping through a tough time is one thing, but helping each and every month is another problem,鈥� Rossman said.
The majority of emergency financial assistance parents have given their adult children during the pandemic has gone to food and housing expenses, though 13% of parents surveyed who have given their adult children money in the last year admit they don鈥檛 know how the money was used.
CredtiCards.com commissioned YouGov PLC to conduct the survey of nearly 4,000 adults online April 7-12. Its survey results are posted .
