More than half of parents are willing to borrow money to help their children adjust to school, study shows

Today, more young people are turning to their parents for help making ends meet.

According to a new report from Savings.com, 50% of parents of children over the age of 18 provide at least some financial support to their children. This is the first time that the proportion has surpassed last year's 47% and is expected to rise to 45% in 2023.

The report found that from buying food to paying for cell phone plans, health insurance, car insurance, and even rent, these parents are spending an average of about $1,474 per month, a three-year high.

“Adulthood is expensive,” the report states.

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Many experts contend it’s harder today for young adults to make it on their own.

In addition to soaring everyday expenses and housing costs, millennials and Generation Z face other financial challenges their parents did not at that age.

Not only are their wages lower than their parents’ earnings when they were in their 20s and 30s, after adjusting for inflation, but they are also carrying larger student loan balances, many reports show.

But by other measures, young adults are doing well.

Compared with their parents at this age, Gen Zers are more likely to have a college degree and work full time. Plus, many millennials have more saved for retirement than they did just a few years ago, after reaping the benefits of positive market conditions.   

Yet, roughly 1 in 3 adults ages 18 to 34 in the U.S. live in their parents’ home, according to U.S. Census Bureau data.

“Housing is a big issue and parents are helping more and more with rent and home purchases,” said Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida.

But by other measures, young adults are doing well.

Compared with their parents at this age, Gen Zers are more likely to have a college degree and work full time. Plus, many millennials have more saved for retirement than they did just a few years ago, after reaping the benefits of positive market conditions.   

Yet, roughly 1 in 3 adults ages 18 to 34 in the U.S. live in their parents’ home, according to U.S. Census Bureau data.

“Housing is a big issue and parents are helping more and more with rent and home purchases,” said Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida.

60% of parents put their own financial security at risk

Beyond monthly expenses, supporting adult children can have long-term costs.

Savings.com found that over 60% of parents say they sacrifice their own financial security for their children, an increase from previous years. The website surveyed over 1,000 parents of adult children in February.

Furthermore, approximately 18% of parents supporting adult children say the financial burden could continue indefinitely.

"They don't see an end to this phenomenon," said Beth Klongpayabal, the study's lead data analyst.

McLanahan said that generally, you should set aside some money for your retirement and emergency funds first. She also recommended that parents set parameters to ensure their children use the money they gift wisely.

"We're careful to ensure parents don't over-gift and put themselves in danger," said McClanahan, who also serves on CNBC's advisory board.