Source: Fortune
Summary
According to the BMO Real Financial Progress Index, 37% of parents with young children expect financial help from family in the next year. The report found that 82% of American parents say the cost of raising children is out of control, with 86% struggling to save for their children’s futures due to high expenses. BMO’s Robin Growley noted that raising kids requires significant financial planning. Over 75% of parents say family support is essential for affording opportunities for their children.
Our Reading
The numbers tell one story.
37% of parents expect family help.
82% say costs are out of control.
Parents are stretched between urgent and important expenses.
Financial help is a lifeline, not a luxury.
Author: Evan Null
Financial Help from Family
37% of parents with young children expect financial help from family in the next year. This figure highlights a growing reliance on extended family to manage the rising costs of raising children. The BMO Real Financial Progress Index shows that financial support from parents or grandparents is seen as essential by many families. This trend reflects the increasing pressure on household budgets due to high childcare and education costs.
Costs of Raising Children
82% of American parents say the cost of raising children has gotten out of control. This sentiment is driven by the rising expenses of daycare, after-school programs, summer camps, and school supplies. Parents are struggling to save for their children’s futures, with 86% reporting that everyday expenses are making it harder to plan for the future. The financial burden is forcing many to seek help from family members.
Role of the Baby Boomer Generation
The baby boomer generation is not just providing financial support but also helping with childcare. 43% of parents depend on grandparents for childcare, while 26% receive help through 529 plans or other savings accounts. This support is crucial for younger families, who are turning to older relatives for help rather than waiting for the so-called Great Wealth Transfer. The trend shows a shift in how families are managing financial pressures.
Childcare Expenses
Parents are spending about 20% of their annual income on childcare, with one in five spending over $30,000 a year. The U.S. Department of Health and Human Services sets a benchmark of 7% of family income for affordable childcare. Despite a slight decrease from 2025, the mental health toll has increased, with 80% of parents focused on caregiving almost all the time. This has led to a 5% increase in parents considering suicide or self-harm.
Impact on Mental Health and Careers
The pressure of caregiving is pushing parents to the limit, with many considering cutting back or stepping away from their careers. This could deepen financial strain and emotional stress, trapping parents in a system that continues to fail them. The need for family support is growing, but it comes with its own set of challenges, including the responsibility of caring for aging parents. This creates a complex web of financial and emotional obligations for many families.
