Acumen Insights

Few Millennials Receive Financial Support from Parents

By November 20, 2015 No Comments

Zillow analyzed data from Federal Reserve Board for young adults (ages 23 to 34) who are lucky enough to have their parents help them financially with both higher education and a down payment to buy a home.  Zillow estimated the extent of this privileged population by starting with the 46 percent who had completed some form of post-secondary education – anything from an associate’s degree to a doctorate or professional degree. Within this group, 61 percent (or 28 percent of all young adults) received financial assistance from their parent(s), including cases where the parent(s) took out a loan to cover the child’s educational costs.

Among those who received financial support from their parents for post-secondary education 43 percent are homeowners. Of this 43 percent, 25 percent received family support in funding their down payment. Thus, in total, only a mere three percent of all young adults received parental support for both education and buying a home.