Boomers are helping with debts
Apart from the daily expenses, boomer parents are also helping their millennial children with their debts.
A survey performed last year revealed that 12 percent of millennials received financial support to be able to make student loan payments. The respondents admitted to having received $625, on average, from their parents. Would it surprise you to find out that boomers who said they provided their kids with support for student loan payments claimed to have given $3,758? I didn’t think so!
In terms of credit card debts, millennials reported receiving $600, on average while parents said their millennial children received around $2,051 for credit card bills.
Why this is a problem
Normally, helping your children from time to time wouldn’t be a problem. The sad thing is that many boomers have their own debts to worry about. Reportedly, boomers between 55 and 64 years of age have the second-highest percentage of respondents with credit card debt at 54 percent. In numbers, that would mean around $3,000 in credit card debt.
27 percent of the parents participating in the survey carried out by TD Ameritrade last year claimed a part or their entire savings were given to their adult children or grandchildren in support. In some situations, boomers were even forced to delay leaving the workforce to be able to continue helping their children.
