Calculate the Cost of Supporting an Adult Child
Thanks to a post-recession economy and lagging job market, Millennials inherited the reputation of being the "
A recent NerdWallet study
looked at the cost of taking care of an adult child in terms of
- On average, parents say the longest period of time they had their adult children living with them is 4.5 years. Almost 3 in 5 parents with kids 18 and older have had adult children living with them for more than a year; over 1 in 5 have had adult children living with them for more than five years.
- Parents paying college costs could be missing out on almost $80,000 in retirement savings. More than a quarter of parents with adult children are paying or have paid for their children's tuition or student loans.
- Almost a quarter of parents saving for retirement expect their children to provide financial support for them after they retire. Millennial parents are nearly twice as likely to say this (44% vs. 25% of Generation X parents and 5% of baby boomer parents).
They also built a calculator to help quantify the cost. You enter in details about how much extra you might spend on groceries, health insurance, or other expenses, and the calculator will tell you how much that would cost in terms of investing for your retirement. You can check it out here.