The Blubber

Per Bloomberg

There has been an increase in parents using their savings to help their adult children (people aged 18 and up). This data came from Bankrate, which shared how parents sacrificed their emergency, debt payoff, and retirement savings to help their children aged 18 and up.

The report noted that the market turmoil had created a "$7 trillion retirement-savings shortage." The parents that were most likely to help their children were from Gen X, people aged 43 to 58.

Ted Rossman, a Bankrate senior analyst, gave a statement regarding the situation. It was shared how parents assist their children as young adults struggle with student loans, among other costs.

Rossman: "Young adults are wrestling with student loans and high household formation costs, but if parents overextend themselves in an effort to help, they might end up jeopardizing their own financial security."

It was agreed upon by the older and younger generation that by the age of 20, people should start paying for the following.

• credit card bills
• car insurance
• cellphone bills

However, it was agreed upon that for health insurance, housing, and student loans, it was okay to ask for help.

Rossman: "While we want to be empathetic and help our kids, sometimes financial assistance goes too far... It might help to attach a specific dollar amount or timeframe."

In April, it was noted that 39% of Americans said that they skipped making housing payments. This comprised 44% of millennials, 20% of Baby Boomers, and 37% of Gen Z.

Recently, homebuyers reportedly needed to make $107,000 annually, up from $74,000 a year earlier. This resulted in a nearly 46% increase.

Recently, it was also noted that Americans could see their promised Social Security benefits drop by 27% in the span of just 10 years. The combined funds of Social Security will reportedly only cover 80% of scheduled benefits after 2034.

See flow at unusualwhales.com/flow.

Other News:

• 39% of Americans say they’ve skipped meals to make housing payments
• Americans could see promised Social Security benefits cut by 27% in just 10 years

Resources:

Bloomberg