A recent survey from Personal Capital examined the way different generations of affluent parents view helping their kids financially and found that wealthy millennials with kids feel an unprecedented obligation to support their kids.
Commissioned by Personal and conducted by ORC International, the survey polled 1,001 U.S. adults ages 18 and older who are parents and have total investable assets of $500,000 about what they believe their children expect them to provide. The results showed that millennial parents overwhelmingly believed their kids will expect them to pay, at least in part, for their education, wedding, and even housing.
Of the millennial parents surveyed, 79 percent believe they will be expected to for their kid’s education, while just 59 percent of all parents believe the same thing. Similarly, 68 percent of millennial parents believe they’ll pay for their kid’s housing, which is 40 percent more than all parents. Approximately two-thirds of millennial parents believe they’ll be paying for their kid’s wedding, compared to just 44 percent of all parents who believe the same thing.
It seems that wealthy millennial parents believe that an integral part of being a parent is being able to provide for your child, as 70 percent said they would prioritize paying for their child’s education over saving for their own retirement. Nine out of ten millennial parents believe their kids will expect them to pay for at least one “big-ticket item” in their lives, compared to 69 percent of parents overall. With this strong sense of parental and financial responsibility comes high expectations, as millennial parents believe their kids will end up in grad school at a much higher rate than other generations.
Interestingly, high wealth parents, as a whole, are not that different from parents in general when it comes to financial expectations. Per the survey, there’s only a five percent difference between how many wealthy parents believe they’ll pay for their kid’s education and all parents. It seems that all millennial parents see significant financial support as an inevitable part of parenting.