TD Ameritrade survey reveals grandparents
are the secret; providing time and money to the tune of $253
billion each year
Millennials, the generation following a less predictable path
than their parents, are now parents themselves. Approximately 26
million Gen Y-ers are raising kids today, and the number is
expected to grow exponentially over the next several years. These
bundles of joy certainly don’t come cheap, with the U.S. Department
of Agriculture estimating the cost of raising a child to age 18 at
$233,610 – and that doesn’t even include college expenses. It’s no
wonder that 58 percent of Millennial parents are stressed about
earning enough to support themselves and their families. Faced with
record-high student debt and stagnant wages, many millennial
parents are grateful for a helping hand from their own parents.
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TD Ameritrade Millennial Parents Survey.
(Graphic: TD Ameritrade)
The TD Ameritrade Millennial Parents Survey examines the
financial habits and attitudes of millennial parents, taking into
account the monetary and non-monetary support they receive from
their own parents. The survey finds that, on average, each
millennial parent with a living parent receives approximately
$11,011 per year in combined financial support and unpaid labor
from their parents, including those who receive zero support.
Across America, this totals $253 billion each year.
“Our survey reveals that millennials are becoming parents with
eyes wide open to the financial implications of raising a child and
most are diligently planning and saving for these costs in advance
of starting a family,” said David Lynch, managing director and head
of branches at TD Ameritrade, Inc.1 “Millennial parents are not too
proud to accept help from their own parents and, as a result, they
may be more likely to stay on-track with their long-term financial
goals like retirement and college savings.”
The survey of 1,000 U.S. millennial parents also found:
Nearly half (48 percent) of millennials have delayed
parenthood until they were financially secure. Twice as many
millennial parents as grandparents (24 percent vs. 12 percent)
strongly agree that they waited until being financially secure
before having children.
Millennials would have a third child, were it not for the
expense. If money were no object, they would have one
more child, on average (three instead of two).
More than half (54 percent) received financial support from
their parents in the past year. Single parents were more likely
to receive parental support than those in two-parent households (63
percent vs. 52 percent).
Fifty-six percent of millennial parents are grateful for the
financial help, while a quarter (26 percent) feel
embarrassed. Women are more likely than men to feel
grateful (63 percent vs. 49 percent).
Three in 10 (30 percent) get help from “granny nannies.”
Millennials with parents who provide primary childcare receive 14.3
hours per week, and those with parents providing back-up childcare
receive 9.2 hours per week. Grandparents’ help with childcare and
other unpaid labor can save parents up to $300 per week.
The survey also included 1,000 U.S. grandparents with millennial
children and found:
Forty-eight percent of grandparents say their adult child is
not completely financially independent from them. However, five
percent have an adult child who is completely financially
dependent.
Three-quarters say they are glad they’re able to provide
financial support despite the fact that 47 percent have had to
make some financial sacrifices to help an adult child.
Half (49 percent) of grandparents see this assistance as
temporary. However, nearly one in 5 (18 percent) grandparents
expect to continue providing financial support to their adult child
for the rest of their life.
The youngest and/or female adult child gets the most
help. Four in 10 (41 percent) grandparents with more than one
adult child say that the most financial support goes to their
youngest child, and the same number say the most goes to a female
child.
“So what’s a good parent or grandparent to do? Work together to
set clear limits and expectations for financial support and child
care and discuss the tradeoffs to make the support possible,” said
Lynch. “Both generations can start planning for the future today by
setting financial goals. Putting in the time now can help establish
a clear vision of what financial well-being looks like down the
road whether your dreams include sending a child to college or
retiring on the beach.”
About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment
advisors (RIAs) have turned to TD Ameritrade’s (Nasdaq:
AMTD) technology, people and education to help
make investing and trading easier to understand and do. Online or
over the phone. In a branch or with an independent RIA. First-timer
or sophisticated trader. Our clients want to take control, and we
help them decide how – bringing Wall Street to Main
Street for more than 40 years. TD Ameritrade has time and
again been recognized as a leader in investment services.
Please visit TD Ameritrade's newsroom
or www.amtd.com for more information, or read our stories
at Fresh Accounts.
1 TD Ameritrade, Inc. is a broker-dealer subsidiary of TD
Ameritrade Holding Corporation.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
About Head Solutions Group
Head Solutions Group (U.S.) Inc., is a leading market research
partner for Financial Services companies in North America. With
offices in New York, Toronto and Montreal, Head delivers the deep
customer insights that increase institutional knowledge and propel
business action. TD Ameritrade and Head Solutions Group are
separate and unaffiliated firms and are not responsible for each
other’s services or policies.
About the 2016 Millennial Parents Survey
A 18-minute online survey was conducted with 2,018 American
adults (half millennial parents age 19-37, half grandparents age
50-70 with adult children) by Head Solutions Group, between Oct. 20
and Oct. 26, 2016, on behalf of TD Ameritrade Holding Corporation.
The statistical margin of error for the total sample of N=2,018
American adults within the target group is +/- 2.1 percent. This
means that in 19 out of 20 cases, survey results will differ by no
more than 2.1 percentage points in either direction from what would
have been obtained by the opinions of all target group members in
the United States. Sample was drawn from major regions in
proportion to the U.S. Census.
Source: TD Ameritrade Holding Corporation
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170119005309/en/
TD Ameritrade Holding CorporationFor Media:Rebecca Niiya,
402-574-6652Sr. Manager, Corporate
Communicationsrebecca.niiya@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Director, Finance and Investor
RelationsJeffrey.Goeser@tdameritrade.com
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