Parents are giving billions of dollars to their grown children. But who is looking out for Mom and Dad?
Being a parent doesn’t end when your children turn 18. And for many families, neither does financial support.
According to a recent report from the U.S. Census Bureau, parents gave $26.6 billion to their adult children in 2024. That money came from 2.6 million parents and helped 3.7 million adult children who were living on their own.
And that doesn’t include the money parents spend helping children who still live at home!
Clearly, the Bank of Mom and Dad is still open for business. And judging by the billions being handed out, it may be getting too big to fail! 😊 The only problem is that unlike a real bank, Mom and Dad don’t have a government bailout waiting if the money runs out.
Why Are Parents Giving So Much?
Life is expensive. Buying a home, raising children, paying off student loans, and keeping up with daily bills can be a challenge.
Many parents want to help their children get ahead.
Sometimes it means helping with a down payment on a home. Other times it might be paying off a credit card, helping with rent, or covering an unexpected bill.
The Census Bureau found that among parents who gave money to adult children living away from home, nearly 73% helped one child. The rest helped two or more.
In fact, the typical parent who gave financial help provided $4,725 during the year.
That is a lot of money, especially for someone living on a fixed income.
But Who Is Taking Care of Mom and Dad?
I have spent more than 23 years helping homeowners plan for their financial future.
One thing I often see is parents who are more worried about their children’s financial needs than their own.
I understand that. We all want our children to do well.
But there is an important question we need to ask.
Can you afford to help your children without putting your own future at risk?
What happens if you need long-term care? What if your living costs keep going up? What if your savings don’t last as long as you hoped?
These are real concerns.
The same Census report found that Americans also gave $20.2 billion in financial help to their parents in 2024.
Money is moving between generations in both directions.
Wouldn’t it be better to have a plan that allows parents to help their children today without needing financial help themselves tomorrow?
Your Home May Hold the Answer
For many Americans, their home is one of their largest financial assets.
They have spent years paying down the mortgage. At the same time, the value of their home may have grown a great deal.
Yet much of that wealth remains tied up in the house.
Many homeowners think of their equity as something they will leave to their children.
But what if some of that equity could help the family today?
A Home Equity Conversion Mortgage (HECM), may offer another option.
For eligible homeowners age 62 and older, a HECM allows them to use part of their home equity without selling their home.
There are no required monthly principal and interest payments. Homeowners must still pay property taxes, insurance, and maintain the home.
The money can be used for many things, including helping children buy a home, paying for family needs, or building a financial safety net.
Of course, there are costs, and the loan balance grows over time. That is why it is important to understand the full picture before making a decision.
An Inheritance Today or Tomorrow?
Here is something worth thinking about.
Many parents hope to leave their home or savings to their children someday.
But their children may need help more today than they will 20 years from now.
Think about a young family trying to buy its first home. A little help with the down payment today might make a big difference in their lives.
Or perhaps a child is struggling with debt. Helping them get back on their feet could change their financial future.
Does that mean you should give away your savings?
Absolutely not.
The goal is to find a way to help your family while making sure you have enough to take care of yourself.
That is where good financial planning comes in.
A Different Way to Think About Home Equity
I believe we need to change the way we think about the wealth in our homes.
For years, we have been taught to pay off the mortgage, build equity, and leave the house to our children.
There is nothing wrong with that.
But home equity can do more than provide an inheritance. It can also help improve your life and, in some cases, the lives of your children.
The key is having a plan that looks at your income, savings, home equity, and future needs.
A HECM is not right for everyone. But understanding how it works may open doors you never knew existed.
After all, you worked hard to build the equity in your home.
Turns out you can spend equity, too.
And perhaps use some of it to help the people you love while you are still here to enjoy seeing the difference it makes.
Source: U.S. Census Bureau, September 30, 2026, Parental Financial Support Does Not End When Children Grow Up, Even After They Move Out, by Liza C. Valle. Based on the 2025 Survey of Income and Program Participation, reporting financial assistance during 2024.