In New York Kids Are the New Bank for Mom and Dad

For generations, parents were the ones slipping their kids a few bucks for gas, groceries, or rent. But now, the script is flipping. A new survey shows that nearly half of New Yorkers have lent money to their parents and most of it’s to help with bills, not luxuries.

Lending to Help, Not to Splurge

According to MarketBeat’s survey of more than 5,000 people, 45% of adult children in New York say they’ve loaned money to their parents, with the average amount totaling around $900. Most of these loans weren’t for vacations or shopping sprees.

Instead, 48% of parents asked for help paying regular bills or covering daily expenses. Another 34% said they needed money for an emergency, and only 12% used it for something fun or extra.

How It Makes Kids Feel

While money can get messy in families, most New Yorkers said helping their parents felt good. 78% said they were proud to lend a hand when it was needed. But not everyone walked away happy, 8% said it hurt their relationship, 6% admitted feeling resentment afterward, and another 8% said they’ll never lend money again. 22% even said they’d consider charging their parents interest next time.

Parents Have Been Charging Interest, Too

This might sound surprising, but it goes both ways. In MarketBeat’s earlier survey, parents admitted they’ve started charging their kids interest when lending money about 5% on average. That’s better than a personal loan rate, which the Federal Reserve lists at around 11.25%, but it shows how financial stress is reshaping even family relationships.

How Families Handle Lending

Money and family can be a tricky mix. The same study found that 29% of parents won’t lend more than $100 at a time, while 15% are comfortable lending $5,000 or more. When it comes to payback, 21% expect their money back within a month, 21% within six months, and 15% are fine waiting up to a year. Rising prices are also playing a part, half of parents said inflation has changed how much they’re willing to lend.

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Money Can Bring Families Together or Cause Tension

Most families say lending hasn’t damaged their relationships (86%), about 14% admitted that money has led to long-term conflict. If you’re helping family, be clear about what’s a gift and what’s a loan. The goal, after all, is to help each other not add more stress to the mix.