The strange new trend for families in NJ

I didn’t think that I could be surprised at much after 30 years of talking to New Jerseyans about how difficult it is to stay above water financially but this study surprised me.

Nearly half of New Jerseyans have lent money to their parents, reversing the traditional roles of parents helping their children during tough times.

According to a recent MarketBeat survey, nearly half of adult children in New Jersey have lent money to their parents to cover bills.

Adult children in NJ are reversing traditional roles

The survey, which surveyed over 5,000 people nationwide, revealed that 44% of New Jersey adults have loaned cash to their parents, with the average amount being around $900. Most of these loans were for basic expenses such as utilities or groceries, with about a third going towards emergencies.

Only a small group admitted that the money was used for vacations or luxury purchases. Now those are good kids!

Despite the emotional pride that most people felt in helping, the survey also revealed some issues. Approximately 8% of respondents stated that lending money caused tension, 6% felt resentful, and another 8% vowed never to do it again.

Some even suggested charging interest next time.

SEE ALSO: Thrift stores are booming in NJ. Here’s why

Parents are now charging their kids interest on loans

Interestingly, the same study found that many parents now charge their children interest when lending them money, averaging about 5%, compared to the national personal loan rate of 11%.

With inflation and rising living costs, financial stress now seems like something
being passed back and forth between generations.

The survey also revealed that almost half of parents have adjusted their lending amounts due to rising costs. While most families believe that money hasn’t affected their relationships, about 1 in 7 admitted that it has caused lasting conflict.

I don’t doubt it. It sounds like a recipe for disaster.

Opinions expressed in the post above are those of New Jersey 101.5 talk show host Judi Franco only.

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