Around 64% of parents with Gen Z children, aged 18 to 28, said that their adult kids still rely on them for money, housing, or other financial support, according to a new survey from Wells Fargo. 

And their continued support has led to a money pinch, as 56% reported that assisting their grown-up offspring is straining their own finances. 

But despite assumptions that Gen Zers are living outside their means, most parents aren’t stepping up to finance the lavish lives of their adult children. 

Emily Irwin, head of private wealth planning at Wells Fargo, tells Fortune that they’re actually helping cover essential living expenses rather than extravagant getaways and shopping sprees. Gen Zers are battling a sluggish entry-level job market, stagnating wages, and high cost-of-living while wanting to financially prepare for the future. And parents don’t want to wait until they pass down wealth at the end of their lives to step in.

“[Adult Gen Z] kids who are receiving the financial support are really in this perfect storm,” Irwin says. “They’re feeling uncertain about their career, their profession, and the stability of receiving a paycheck. They’re combining that with a desire to want to save more than they have even in prior years.”

Why parents are giving Gen Z kids their future inheritance now

Irwin says she’s heard from Wells Fargo clients that they want “their dollars in action during their lifetime, versus simply at death,” and it’s fueling an earlier wealth transfer informed by those who were once in their children’s shoes. 

Parents want to turn the tide on the “big inheritance movement” they once benefited from (perhaps too late) in life, Irwin says.

“Having gone through that cycle themselves, receiving an inheritance in their 50s, 60s, sometimes even 70s, is less impactful,” Irwin explains. “They say to us, ‘We got this and we could have really used it when we were starting a family, buying a home, buying a business, paying down our debt, maybe making a career shift.’”

While fronting rent and loaning money to their kids undeniably puts a strain on their wallets, Irwin observes that the financial stress actually largely stems from “a complete lack of communication.” 

Parents and their adult Gen Z kids aren’t being open about this financial support: how much the children really need, when the assistance might end, and if money needs to be paid back. Without any transparency, financial troubles are bound to bubble to the surface. 

“What I really encourage parents to do is have direct conversations with their children,” Irwin says. “Discuss everything from: Is this a gift or a loan, or some sort of a hybrid? Is there an expectation of it being paid back, and if so, with or without interest?…How long do they plan to be able to give financial support?”

Gen Z’s financial and career predicament 

There’s little question that Gen Z is under immense economic and career challenges. 

Last year, around 58% of students who had recently finished college were still looking for their first job, according to a 2025 Kickresume report. Meanwhile, just 25% of graduates of previous generations—including millennial and Gen Xers—found it hard  to land work after college. 

On the financial front, young people are also struggling. Gen Z’s average FICO score slipped three points to 676—39 points lower than the national average of 715, according to a 2025 FICO report. Erin Stillwell, head of payments at Globant, told Fortune last year that “Gen Z is the first cohort facing high inflation, digital credit, and social-media-driven consumption pressure simultaneously.” 

The “perfect storm” of issues has become so intense it’s even keeping many young people up at night. Around seven in 10 Gen Zers said they couldn’t sleep because they’re so stressed about rising prices, rent, and job security, according to a 2025 report from Amerisleep. Contrary to the belief that the young generation loves to spend and expects a life of luxury, most are simply trying to hold on. 

“I wouldn’t say Gen Z is living outside their means,” Irwin explains. “Gen Z’s a little bit in [a] unique position…The last few years, we’ve had higher inflation—that’s a reality. We’ve had higher interest rates—that’s a reality…[Many] of them feel like there’s instability in their job.”