February 6, 2017 <\/p>\n
By Bobbi Rebell <\/p>\n
NEW YORK (Reuters) The Bank of Mom & Dad is busy these days. <\/p>\n
Millennials with kids of their own say they received $11,011 in financial support or unpaid labor, on average, from their parents in the past year, according to a recent study by TD Ameritrade. <\/p>\n
All told, that adds up to $253 billion worth of financial assistance. <\/p>\n
David Lynch, managing director and head of branches for TD Ameritrade, says the generation of young adults aged 18 to 34 faces a different set of financial challenges most notably, sizeable student loans and stagnant wages. <\/p>\n
In other words, these are hardly slackers with their hands out looking for a free ride. In fact, millennial parents tend to view parental support as a tool toward their financial independence and not a way to delay adult financial responsibilities. <\/p>\n
In fact, 56 percent of millennial parents are grateful for the financial help, according to TD Ameritrades research, although a quarter say they feel embarrassed for the handout. <\/p>\n
Chelsea and Kirk Johnson of Lehi, Utah, consider themselves financially independent, yet they borrowed $5,000 from Kirks parents for a down payment for a new home. <\/p>\n
Chelsea, 26, estimates that they are subsidized by about $7,000 annually from their parents, including babysitting, various family meals and a trip to Disneyland. <\/p>\n
But they have also drawn up a contract to re-pay the money for the down payment, so that it can be used for Kirks five siblings, as needed. <\/p>\n
John Tarnoff, author of Boomer Re-invention: How to Create Your Dream Career After 50, is not surprised that millennials are leaning on their parents to get launched. <\/p>\n
As long as grandparents are in sound financial shape for their own retirement, Tarnoff noted they can be in a great position to support millennial offspring. <\/p>\n
His advice is to take unexpected occurrences into account, including losing a job early or a debilitating health-related event. The older generation may be in a bit of denial about their own needs, Tarnoff added. <\/p>\n
In addition, be sure to be using the money you gift or lend as a teaching tool so that the younger generation stays on a path to independence. <\/p>\n
That opinion is shared by Kirks mom, April Johnson, who sees any financial support she gives her children as an investment in their future. <\/p>\n
Sometimes it just takes another year or two to get over the hump, April said. We talk to them about it as we go. <\/p>\n
(Editing by Lauren Young and G Crosse) <\/p>\n
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Millennial parents still like to tap the Bank of Mom & Dad - One America News Network (press release)<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" February 6, 2017 By Bobbi Rebell NEW YORK (Reuters) The Bank of Mom & Dad is busy these days. Millennials with kids of their own say they received $11,011 in financial support or unpaid labor, on average, from their parents in the past year, according to a recent study by TD Ameritrade. All told, that adds up to $253 billion worth of financial assistance Continue reading