Gen X’s purchasing power could reshape marketing strategies
Gen X is driving trillions of dollars in global spending, which could prompt marketers to rethink their focus on the generation.
Half of Millennials and one-third of Gen Xers are still financially dependent on their parents, according to a new study.
The findings suggest that the economic relationship between aging parents and aging children may be changing.
There is a long tradition of young people relying on their parents for some of their expenses as they start their careers and start families.
But American millennials aren’t that young anymore. The youngest generation is turning 30, and the age group of Generation X now ranges from 45 to 61 years old.
Newly released data from Northwestern Mutual’s 2026 Planning and Progress Survey shows that 42% of adults surveyed said they felt financially dependent on their parents. The breakdown by generation is as follows:
- Generation Z (under 29 years old): 72% are dependent on their parents
- Millennials: 53% depend on parents
- Generation X: 33% depend on their parents
Older adult children wait longer for inheritance
Americans are having children later and living longer. That means adult children will wait longer for inheritance, the traditional gateway to financial independence.
Researchers at the Wharton School at the University of Pennsylvania found that people between the ages of 56 and 65 are most likely to receive an inheritance. And, according to an analysis by The Washington Post, fewer than two-fifths of Americans inherit their children.
“While large wealth transfers are a reality, inheritance is not something most Americans can count on,” said Jeff Sippel, chief strategy officer at Northwestern Mutual.
The survey data, released June 1, is based on interviews conducted with 4,375 adults in January.
Large wealth transfers are expected to amount to $124 trillion by 2048, primarily from older generations to younger generations.
Elderly parents have many assets to inherit.
Baby boomers born between 1946 and 1964 own 51% of America’s wealth, with their mountains of real estate, stocks, pension benefits, personal businesses, and other assets valued at $90 trillion by the second half of 2025.
“Parents are in a pretty good position. They want to help,” said Ryan Nelson, president of emerging wealth management at US Bancorp Advisors. “They want their children to have a higher quality of life.”
But sometimes the money arrives late, or sometimes it doesn’t arrive at all. Not only are Americans living longer, but they are also spending more on assisted living, nursing homes, and other long-term care.
“Longevity is great, but it also comes with the added stress of needing more money to retire,” says Douglas Benson Jr., a private wealth advisor and founder of Northwestern Mutual’s Benson Wealth Management.
Economic independence was easy for previous generations
Most Americans find it harder to achieve financial independence now than in previous generations, according to research from Northwestern Mutual. About 20% of adults surveyed said they did not expect to achieve independence.
One reason is rising housing prices. Today’s young people carry more mortgage debt than previous generations, even after adjusting for inflation.
For example, adults ages 29 to 34 had $190,000 in mortgage debt in 2022, compared to $120,174 for the same age group in 1992, after inflation, according to a Pew Research Center analysis.
Adults under 35 are now far more likely to have student loans and have higher balances, according to a Pew Research study.
In 1992, the typical young person owed between $6,000 and $7,000 in student loans. In 2022, young people had between $16,000 and $20,000 in debt in inflation-adjusted dollars.
“Young people are more likely to have student loans and large mortgage debt,” said Rachel Minkin, a senior researcher at Pew Research.
In a 2024 Pew Research survey, 44% of young adults said they had received financial help from their parents in the previous year.
What expenses do parents pay for their adult children?
Here’s a breakdown of the areas in which young people received the most help from their parents:
- Household expenses such as groceries and utilities, 28%
- Mobile phone bill or streaming subscription, 25%
- Rent or mortgage, 17%
- Medical expenses 15%
- Education, 11%
Among parents who provided financial aid to their children, 36% said the aid hurt them financially.
“Low-income parents were much more likely to say their personal finances had been negatively impacted,” Minkin said.
Pew’s report is based on research conducted in October and November 2023.
Many middle-aged adults rely on their parents for financial support, but they aren’t always ready to discuss money with their moms and dads.
According to a 2024 US Bank survey, just over half of Americans are comfortable discussing money with their parents. 49% of Gen Xers, 55% of Millennials, and 58% of Gen Zers.
The U.S. Bank study also found that 37% of parents across generations worry that their children will remain financially dependent upon them into adulthood.
