Three-in-five Gen Z parents still get financial help from their own parents, and 71% are also responsible for caring for an aging family member.
New findings from the BMO Real Financial Progress Index reveal American families are navigating a complex web of intergenerational financial responsibilities. Young parents are increasingly relying on their own parents for financial support, while also preparing to support their children into adulthood and often caring for aging relatives at the same time.
According to the BMO survey, 61% of Gen Z parents and 47% of Millennial parents expect to receive or request financial help from family in the next year. Overall, 45% of Americans with children under 18 plan to seek financial support from parents or grandparents.
This financial interdependence is matched by expectations to provide long-term support to the next generation. A significant majority of younger parents believe financial responsibility extends well into adulthood:
- 82% of Gen Z, 84% of Millennials, and 80% of Gen X say parents should support their kids financially into adulthood, compared to 74% of Boomers.
- Notably, 27% of Americans believe parents should support children financially for as long as they’re alive.
These expectations are translating into action, with 48% of parents and 41% of grandparents planning to provide financial assistance to adult children this year. This includes a sharp increase compared to the previous quarter, from 37% to 47%, of parents and grandparents planning to support their adult children or grandchildren.
“Families today are navigating a financial balancing act that spans three generations. This shift demands more than just budgeting – it calls for a thoughtful, holistic strategy that aligns short-term needs with long-term goals like legacy planning and wealth preservation,” said Leila Francis, National Head, Fiduciary Advisory Services at BMO. “At BMO, we’re helping families ensure they’re not just managing today’s responsibilities, but also building sustainable wealth for tomorrow.”
Counting on the Great Wealth Transfer – And Planning for the Next One
Nearly half of working-age Americans (48%) expect to inherit money from their elders, while 43% anticipate receiving real estate and 46% expect valuable personal items like jewelry.
Gen Z and Millennials are particularly optimistic about receiving an inheritance:
- 60% of Gen Z and 50% of Millennials expect to receive personal property of value such as art or jewelry.
- 59% of Gen Z and 53% of Millennials anticipate a cash inheritance or trusts.
- 53% of Gen Z and 49% of Millennials expect to receive real estate.
- 49% of Gen Z and 44% of Millennials foresee getting life insurance payouts.
- 48% of Gen Z and 44% of Millennials expect non-retirement investments.
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