(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Bobbi Rebell
NEW YORK Feb 6 The Bank of Mom & Dad is busy
Millennials with kids of their own say they received $11,011
in financial support or unpaid labor, on average, from their
parents in the past year, according to a recent study by TD
All told, that adds up to $253 billion worth of financial
David Lynch, managing director and head of branches for TD
Ameritrade, says the generation of young adults aged 18
to 34 faces a different set of financial challenges - most
notably, sizeable student loans and stagnant wages.
In other words, these are hardly slackers with their hands
out looking for a free ride. In fact, millennial parents tend to
view parental support as a tool toward their financial
independence - and not a way to delay adult financial
In fact, 56 percent of millennial parents are grateful for
the financial help, according to TD Ameritrade's research,
although a quarter say they feel embarrassed for the handout.
Chelsea and Kirk Johnson of Lehi, Utah, consider themselves
financially independent, yet they borrowed $5,000 from Kirk's
parents for a down payment for a new home.
Chelsea, 26, estimates that they are subsidized by about
$7,000 annually from their parents, including babysitting,
various family meals and a trip to Disneyland.
But they have also drawn up a contract to re-pay the money
for the down payment, so that it can be used for Kirk's five
siblings, as needed.
John Tarnoff, author of "Boomer Re-invention: How to Create
Your Dream Career After 50," is not surprised that millennials
are leaning on their parents to get "launched."
As long as grandparents are in sound financial shape for
their own retirement, Tarnoff noted they can be in a great
position to support millennial offspring.
His advice is to take unexpected occurrences into account,
including losing a job early or a debilitating health-related
event. The older generation may be in a bit of denial about
their own needs, Tarnoff added.
In addition, be sure to be using the money you gift or lend
as a teaching tool so that the younger generation stays on a
path to independence.
That opinion is shared by Kirk's mom, April Johnson, who
sees any financial support she gives her children as an
investment in their future.
"Sometimes it just takes another year or two to get over the
hump," April said. "We talk to them about it as we go."
(Editing by Lauren Young and G Crosse)