More than 60 per cent of today’s young adults have received financial help from their parents — and those described as having more agreeable personalities as children get more money than others, finds a study to be presented today at a meeting of the Population Association of America.Among the 62 per cent of young people getting parents’ help, the average amount was $12,185, says lead author Patrick Wightman of the University of Michigan-Ann Arbor.
About 42 per cent of parents help adult children pay their bills, 35 per cent help with college tuition, 23 per cent help with vehicle expenses and 22 per cent help with rent away from home, he found.
Children who parents said were cheerful, self-reliant and got along well with others before age 12 were more likely to receive financial gifts or loans as young adults, Wightman says. And in families with more than one child, “if they perceive one of those kids to have a better attitude or to be more self-reliant, that kid has higher odds of receiving this type of support,” he says.
The analysis is based on more than 2,000 interviews with 1,368 young adults ages 19-22 and their parents in 2005, 2007 and 2009.
The research found 82 per cent of higher-income parents ($99,910 or more a year) provide help , vs. 47 per cent of families with lower incomes (under $37,274). But lower-income parents provided as great a share of their incomes overall to help kids — about 10 per cent.
A study in the current issue of the Journal of Adult Development found similar percentages of students getting parents’ assistance — about two-thirds of 402 undergraduate students ages 18-27 at four U.S. campuses.
But that research, co-written by Larry Nelson, an associate professor of family life at Brigham Young University in Provo, Utah, found that when parents covered everything, “their children worked the fewest hours and were engaged in the greatest number of risk behaviours,” defined as drinking, binge drinking, smoking and marijuana use.
Young adults without financial support from parents “were working the highest number of hours just trying to make money and survive. They weren’t engaged in risk behaviours.”
But Nelson cautions they are also at risk — of dropping out of school:
“They burn out. They don’t finish school and have lower starting salaries.”