Most parents with Gen Z children — those between the ages of 18 and 28 — say their kids still rely on them for capital, housing or other support, according to the 2026 Wells Fargo Cash Study.

Leaning on your parents now can help you to become financially independent later. But it can also create problems in the relationship if not handled well, experts say.

The financial support should be approached “as a plan, not a lifestyle,” commented Recent York-based certified financial planner Douglas Boneparth.

Relying on your parents for cash can help you to become independent. But it can also create problems in your relationship if not handled well, experts say.

About two-thirds, or 64%, of parents with Gen Z children — those between the ages of 18 and 28 — say their kids still rely on them financially, whether for finances, housing or other support, according to the 2026 Wells Fargo Cash Study. More than half of those parents, 56%, say that support is straining their own finances. The bank surveyed 3,773 U.S. adults at the end of last year.

“Support into the mid-20s, and sometimes beyond, has become more accepted, especially when it helps a young adult finish school, manage housing costs or avoid falling behind financially,” noted certified financial planner Douglas Boneparth, president and founder of Bone Fide Wealth, a wealth management firm in Novel York City. 

But parental support should be approached “as a plan, not a lifestyle,” Boneparth stated.

Know the terms of your parents’ support

The support you get from your parents can come in a variety of ways, mentioned Elena van Stee, a sociology fellow at Harvard University who focuses on parent-child relationships. Sometimes parents will split the cost of an expense, such as rent, with their child or require that their child hold a job while receiving their help. Other examples, she commented, include a parent selling their car to their child or charging them rent.

“Especially in more affluent families, when parents were able to provide support but felt uneasy about it, they sometimes developed creative ways of structuring support to produce it feel more culturally acceptable,” van Stee stated.

In each case, you should ask your parents to “be very clear” about the terms of their contributions, stated Boneparth, a member of CNBC’s Financial Advisor Council.

Specifically, you’ll want your parents to spell out if the help is a gift or a loan, he mentioned. If your parents are giving you a loan, “treat it like a real financial arrangement,” Boneparth commented. You should understand the total amount being loaned, the interest rate, when repayment starts and what your repayment amount and frequency will be, he stated.

If the support is a gift, you’ll still want to know how long the help might last and when the situation will be revisited, Boneparth noted.

“A beneficial rule of thumb is to revisit the arrangement monthly if the support is ongoing and meaningful, or at least every three months if the situation is more stable,” he mentioned.

While these conversations can feel awkward, “ambiguity is what breeds resentment on both sides,” mentioned Tim Ranzetta, co-founder and CEO of Next Gen Personal Finance.

To avoid arguments down the road, these financial arrangements are best put in writing, added Corey Seemiller, a professor at Wright State University and the co-author of “Generation Z: A Century in the Making.”

“For instance, if the parents agree to pay off their child’s student loans, that should be in writing,” Seemiller mentioned. “If the child is going to live at home and pay rent, that should be in writing too.”

‘A finish line everyone can see’

Young adults receiving financial support from their parents should also be up front about their plan, Ranzetta noted. They “should be able to show their parents a budget, a savings goal [and] a specific timeline,” he noted. This also touches on aspects of investors.

“It turns an open-ended situation into something with a finish line everyone can see,” Ranzetta remarked.

You should come to the regular check-ins with your parents prepared to share updates on your income, job search progress and debt repayment, Boneparth noted.

“The goal is to show that the support is being used intentionally and that there is forward movement toward greater independence,” he noted.

‘Past support enables present and future independence’

Often, young adults experience shame about getting financial help from their parents, mentioned Harvard’s van Stee.

The support can trigger worries that you’re falling behind traditional adult milestones or discomfort at your privilege of having access to this help, when so many don’t, she noted. The share of Black adults who receive parental assistance is much lower than among white adults, a 2021 study from researchers at the University of Buffalo and The Novel School found.

“Accepting parental support can feel incompatible with American cultural understandings of meritocracy and the idea that the public should earn their own success,” van Stee stated.

But it’s often that help from parents that enable children to be able to stand on their own two feet eventually, she commented.

“Past support enables present and future independence,” van Stee remarked.