How much will you have to pay to support your child in America

American parents are using some of their retirement savings to support their now-adult children—at a cost of about $500 billion a year nationwide, a new study finds.

Фото: Depositphotos

A study by investment firm Merrill Lynch found that 79% of US parents continue to spend their own money while remaining the "family bank" for their adult children, writes The Daily Mail.

They pay for expensive events and processes: weddings and college education, but that's not all - parents also spend on the daily expenses of their mature offspring as if their children are still not able to earn money on their own.

Every year, the parents of American adults spend $500 billion—twice what they set aside in their own retirement savings.

63% of parents told the authors of the study that they donated their financial security for the benefit of their children.

Figures compiled by the US Census Bureau show that 34,1 percent of Americans aged 18 to 34 were still living under the same roof as their parents in 2015. For comparison, in 2005 we were talking about 26% of US residents.

Photo: US Census Bureau

Every fourth living in the house of parents does not attend school and does not work.

Lorna Sabbia, head of retirement and personal savings at Bank of America Merrill Lynch, says parents can drain their own retirement fund by supporting adult children.

“If you get to the point where your retirement or living savings are completely depleted due to child support, your children may need to support you financially later in life,” she said.

Фото: Depositphotos

Gary Cooper, a private financial well-being consultant at UBS Financial Services, is trying to teach his children to make sensible life choices.

Here's what he told CBS: “You want to give back... but sometimes that's not what helps them. Your job is to help them, not to do for them, right?”

“It’s the concept of saving, of budgeting, of understanding—that sense of delayed gratification of a need.”

Sandy Cooper, Gary's wife, hopes that these lessons will help children become stronger in the future.

“I think they will have the inner dignity and motivation to deal with whatever comes their way,” she says.

Raising financially independent children these days is an old-fashioned lesson worth learning: earn first, spend later.

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