The new American dream: Having parents who can help pay for it

Key Points:

• The traditional American path to economic success—college, hard work, saving, homeownership—is increasingly dependent on family financial support, especially for young adults facing tougher job markets, higher living costs, and student loan debt.
• Nearly half of Americans aged 18 to 29 receive financial help from non-household family members for recurring expenses, and an equal share live with their parents, highlighting a growing reliance on familial aid.
• Some affluent families are choosing to give financial support to adult children during their lifetimes to help with immediate needs, rather than waiting to pass down inheritances after death, seeing it as more impactful and fulfilling.
• Examples show that inheritance or family financial aid can enable young adults to pay off student loans and afford down payments on homes, which significantly aids wealth accumulation amid soaring housing prices.
• Conversely, those without family financial support, despite stable incomes and efforts to save, struggle to enter the housing market and may consider alternatives like moving abroad due to unaffordable homeownership in the U.S.