The Bank of Mom & Dad - Can People Still Afford To Grow Up?

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The bank of Mom and Dad is now one of the largest financial institutions in the world.
A 2019 study revealed that American Parents represented the 7th biggest mortgage lender in the country financing over $47.3 billion dollars in the year before.
That’s particularly impressive since a lot of parents are not loaning the ENTIRE purchase price of a property, but are instead just loaning their children a downpayment so they can get another EVEN BIGGER loan from an actual bank.
Now there's probably something to be said about our lax attitude towards taking on endless debt here, but the Bank of Mom and Dad is not only in the mortgage industry.
A survey conducted by Savings.com found that parents were on average funding their adult children to the tune of $1,474 a month to cover basic living expenses like groceries, medicine and gas. Money was also lent or gifted to cover cell phones and even vacations.
And with rates like these bank customers are sticking around… Even Millennials who are now over the age of 30 (at a minimum) were still loyal clients at the Bank of Mom and Dad, receiving just under $900 a month on average.
Now I don’t know about you, but my mom and dad aren’t giving me $900 a month, so clearly that “average” is being influenced a lot by people who were given a black card with the bank at birth.
But there is actually a more concerning trend here. Parents are on average contributing SIGNIFICANTLY more to their adult children than their own retirements.
Mom and Dads financing has also become a lot more complex, with equity releases, finance guarantees, networking, tranched benefits, and of course… serious terms and conditions…
If there is a run on this bank we might end up in a situation where parents can’t afford to retire and children can’t afford to grow up…