The news: About 50% of parents are still financially supporting their Gen Z children, spending an average of $1,813 per month, per Fortune.
How we got here: As prices remain elevated, Gen Zers’ parents—mainly younger baby boomers, Gen Xers, and older millennials—help them with groceries, cell phone bills, health insurance, rent or mortgage payments, and tuition costs. They believe these strains are temporary, however: 37% of parents expect to stop payments within two years and another 28% in three to four years, per Fortune.
What this means for banks: The money parents are sending to their adult children is money they aren’t saving for themselves. Almost 40% of baby boomers say they haven’t set aside enough money to enjoy their next phase of life.