Relying on your parents for money can help you become independent, but it can also create problems in your relationship if not handled well, according to experts.
About two-thirds, or 64%, of parents with Gen Z children – those aged 18 to 28 – say their kids still depend on them financially, whether for money, housing, or other support, according to the 2026 Wells Fargo Money Study. More than half of those parents, 56%, say that this support is straining their finances. The bank surveyed 3,773 U.S. adults at the end of last year.
“Support into the mid-20s, and sometimes beyond, has become more accepted, especially when it helps a young adult finish school, manage housing costs, or avoid falling behind financially,” said certified financial planner Douglas Boneparth, president, and founder of Bone Fide Wealth, a wealth management firm in New York City.
But parental support should be approached “as a plan, not a lifestyle,” Boneparth said.
Know the terms of your parents’ support
The support from parents can come in various ways, said Elena van Stee, a sociology fellow at Harvard University who focuses on parent-child relationships. Sometimes parents will split the cost of an expense, such as rent, with their child or require that their child hold a job while receiving help. Other examples include a parent selling their car to their child or charging them rent.
“In more affluent families, parents sometimes develop creative ways of structuring support to make it feel more culturally acceptable,” van Stee said.
In each case, ask your parents to be very clear about the terms of their contributions, said Boneparth, a member of CNBC’s Financial Advisor Council.
Specifically, you’ll want your parents to spell out if the help is a gift or a loan. If it’s a loan, treat it like a real financial arrangement. You should understand the total amount being loaned, the interest rate, when repayment starts, and what your repayment amount and frequency will be, he said.
If the support is a gift, you’ll still want to know how long the help might last and when the situation will be revisited, Boneparth said.
“A good rule of thumb is to revisit the arrangement monthly if the support is ongoing and meaningful, or at least every three months if the situation is more stable,” he said.
While these conversations can feel awkward, “ambiguity breeds resentment on both sides,” said Tim Ranzetta, co-founder, and CEO of Next Gen Personal Finance.
To avoid arguments down the road, these financial arrangements are best put in writing, added Corey Seemiller, a professor at Wright State University and co-author of “Generation Z: A Century in the Making.”
“A finish line everyone can see”
Young adults receiving financial support from their parents should also be upfront about their plan, Ranzetta said. They should be able to show their parents a budget, a savings goal, and a specific timeline.
“It turns an open-ended situation into something with a finish line everyone can see,” Ranzetta said.
You should come prepared to share updates on your income, job search progress, and debt repayment during regular check-ins with your parents, Boneparth said.
“The goal is to show that the support is being used intentionally and that there is forward movement toward greater independence,” he said.
“Past support enables present and future independence”
Often, young adults feel shame about getting financial help from their parents, said Harvard’s van Stee.
The support can trigger worries about falling behind traditional adult milestones or discomfort at the privilege of having access to help when many do not. The share of Black adults receiving parental assistance is much lower than among white adults, as a 2021 study from researchers at the University of Buffalo and The New School found.
“Accepting parental support can feel incompatible with American cultural understandings of meritocracy and the idea that people should earn their own success,” van Stee said.
But often, it’s that parental help that enables children to stand on their own feet eventually, she said.
“Past support enables present and future independence,” van Stee said.
