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It is no secret that living is more expensive than it was in previous years. Across the board, costs for necessities are skyrocketing. Interest rates are rising, to boot, therefore making it harder for folks to get out of debt once they fall in. At this point, economists predict that a 2023 recession is very much possible. Already, job layoffs are becoming more common as employers try to shield their profit margins and bottom lines. Just about everyone is feeling the sting of inflation and growing living costs these days. Now, a new study reveals this is leading to more adults depending on their parents for financial support and security.

Findings from Credit Karma

According to fresh data from Credit Karma, 31% of parents are giving their adult kids funds for things that go beyond what many consider to be the basics. Of this 31%, 51% are letting their adult children live at home with them. This comes on top of 48% of these parents paying bills for their adult children. Finally, an additional 24% are giving their kids over 18 allowance money or checks. Credit Karma's consumer financial advocate, Courtney Alev, is sharing thoughts about what is happening now. According to Alev, parents have to be able to meet their own needs before the needs of their grown children. Even this is not happening in all cases, though. The data also reveals many parents are dipping into their financial security to make sure their kids are covered. In some cases, this looks like the parents of adult children going into debt, delaying retirement plans, dipping into funds that were meant to go towards retirement, etc. More than six out of ten parents in this boat have reported feeling mental and financial stress as a result of supporting their adult children.

Little hope for the future?

Unfortunately for parents and their adult children, there is no sign of the economy looking up anytime soon. If a 2023 recession happens as expected, then even more folks will find themselves financially strapped. The Federal Reserve is also expected to continue moving up interest rates into the new year as a means of lowering inflation. Gloomy times may continue for parents and their grown kids who are relying upon them.