NYT: 30 somethings still being bankrolled by their parents

[Anonymous]

https://www.nytimes.com/2019/03/02/style/financial-independence-30s.html?action=click&module=Top%20Stories&pgtype=Homepage

Many are bankrolled, to varying degrees, by their parents.

More than half (53 percent) of Americans aged 21 to 37 have received some form of financial assistance from a parent, guardian or family member since turning 21, according to a 2018 report by Country Financial, a financial services firm in Bloomington, Ill. This may include paying bills for a cellphone (41 percent), groceries and gas (32 percent), rent (40 percent) or health insurance (32 percent).

Then there are the free services. Ms. Palmer, who is 39 and lives near Washington, D.C., said that the free 20 to 25 hours of child care she receives every month from her parents contributed to her family’s decision to have a third child (Dylan Palmer Davé arrived on Feb. 9). If she were to pay a babysitter, Ms. Palmer estimates it would add up to around $6,000 a year.

Hi Kim! I'm sure you are an avid forumista!

Ms. Ho said there was no way she would have been able to amass the $200,000 she has in net assets if her parents, both of whom immigrated from Taiwan to pursue advanced degrees, hadn’t paid for tuition at the University of North Carolina at Chapel Hill, given her close to $100,000 toward buying a condo in Washington, D.C., and continue to give her about $10,000 a year.

Hi Iimay! Say hello sometime!

[Anonymous]

My wife (in her 30's) still has many childhood friends in DC being subsidized by their parents.

[Anonymous]

What was your purpose in posting this? Seems mean-spirited.

[Anonymous]

I'm in my 40s and most of my friends with kids in private school have parents paying some or all of the bill. When I got divorced, my mom sent me $50 a month for a year. I didn't NEED it, but I appreciated it and I think it made her feel good to do something tangible for me. My parents will also bring me a truck full of groceries when they visit-10lbs of potatoes, 10lbs or rice, canned fruit, etc.-it's very sweet.

[Anonymous]

I am a Gen-Xer and there was certainly a time in my life when I lived with my parents post-college, had them pay for health insurance, etc. My older (different generation) siblings did not, but they benefited from cheap college (my sister went to university in California, which was practically free back then, and my brother's in-state tuition was minimal - unlike when I was in college.)

[Anonymous]

Long before we called it "subsidizing" adult children there have been many families who pass wealth down the children and grandchildren.

Some see it as getting to enjoy the giving while alive and some see it as keeping the financial legacy going.

[Anonymous]

Many people remain on their parent’s health insurance until 26, so I’m surprised it’s not higher.
M25hrs a month of childcare isn’t exactly a trust fund. It’s 1 day a week - a typical schedule for grandparents to help out.

I’m 40 and I pay my parents cell phone bills on our family plan in exchange for 1 Saturday night babysitting a month. It’s a great deal for all of us. I imagine these types of arrangements are very common among geographically close families.

[Anonymous]

I think the real story here is how well Boomers have done as a generation. I don't think the premise that previous generations were "emancipated" from their families because of some moral choice is right. Rich people gonna rich, and that means passing money to their children throughout their lives. It always has! There are just more of those families. These examples aren't of boomer parents eating canned soup so they can pay grandson's NYC private school tuition. These are boomer parents who can afford it.

Most of these examples are directly related to the tax code. If you are a rich boomer and you're trying to minimize your/your heirs tax burden, it makes sense to max out the cash gift every year (I think it's $14k?) and pay any tuition or medical expense you can, because it avoids the gift tax. I think the Times is really irresponsible for writing this story without pointing out the estate planning angle - not that it's not still a huge and arguably unfair boost for the millennials, but it is only logical that affluent boomers would do that.

[Anonymous]

Baby boomer.

Life was simpler then--cell phones and computers did not exist and so no need to pay for internet and cell access. If you really needed to call someone you could use a pay phone. TV was not a necessity--plenty of us had just a radio. Also, almost no one worried about health insurance. You could buy a used car for not much and gasoline was cheap if you lived where there was little public transportation.

[Anonymous]

We don’t have local family, but we do have a set of financially comfortable grandparents (my IL’s, my own parents are ok financially but they need to take care of themselves at this point vs. spending a lot of money on their adult children). They have helped us and also helped my husband’s older siblings, both of whom are Gen Xers. I wouldn’t say it’s anything out of the norm, they started college savings accounts for both our kids, give a lot of presents and toys and stuff, and gave us a relatively small amount toward the purchase of our first home. I’m sure if either set of grandparents were local, they would love to babysit. I don’t see that as subsidizing too much, but maybe I’m out of touch. I do have many friends who’s parents gave them on the order of $50k+ to help buy a home, or who bought them a larger car when kids came along. That honestly seems very common around here.

[Anonymous]

Anonymous wrote:

More than half (53 percent) of Americans aged 21 to 37 have received some form of financial assistance from a parent, guardian or family member since turning 21, according to a 2018 report by Country Financial, a financial services firm in Bloomington, Ill. This may include paying bills for a cellphone (41 percent), groceries and gas (32 percent), rent (40 percent) or health insurance (32 percent).

Can you really put college juniors and nearly middle-aged people in the same group?

[Anonymous]

Jeez, OP, why be so snarky and mean? re you jealous they have loving families?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

More than half (53 percent) of Americans aged 21 to 37 have received some form of financial assistance from a parent, guardian or family member since turning 21, according to a 2018 report by Country Financial, a financial services firm in Bloomington, Ill. This may include paying bills for a cellphone (41 percent), groceries and gas (32 percent), rent (40 percent) or health insurance (32 percent).

Can you really put college juniors and nearly middle-aged people in the same group?

That was my first thought too. Totally reasonable for a 21 year old college student to receive some support. Over 30? That's embarrassing.

[Anonymous]

I would rather give with a warm hand than a cold one.

[Anonymous]

Anonymous wrote:What was your purpose in posting this? Seems mean-spirited.

I only posted it because it was relevant to DC and quite possibly had forum members profiled in it. Kim, for example, is definitely a poster on here. Kim's mom probably posts on here as well - you can tell by looking at the picture.