How Millennial Parents Raise Kids Without Risking Their Own Financial Future

TD Ameritrade survey reveals grandparents are the secret;
providing time and money to the tune of $253 billion each year

OMAHA, Neb.–(BUSINESS WIRE)–Millennials, the generation following a less predictable path than their
parents, are now parents themselves. Approximately 26 million Gen Y-ers
are raising kids today, and the number is expected to grow exponentially
over the next several years. These bundles of joy certainly don’t come
cheap, with the U.S. Department of Agriculture estimating the cost
of raising a child to age 18 at $233,610
– and that doesn’t even
include college expenses. It’s no wonder that 58 percent of Millennial
parents are stressed about earning enough to support themselves and
their families. Faced with record-high student debt and stagnant wages,
many millennial parents are grateful for a helping hand from their own

The TD
Ameritrade Millennial Parents Survey
examines the
financial habits and attitudes of millennial parents, taking into
account the monetary and non-monetary support they receive from their
own parents. The survey finds that, on average, each millennial parent
with a living parent receives approximately $11,011 per year in combined
financial support and unpaid labor from their parents, including those
who receive zero support. Across America, this totals $253 billion each

“Our survey reveals that millennials are becoming parents with eyes wide
open to the financial implications of raising a child and most are
diligently planning and saving for these costs in advance of starting a
family,” said David Lynch, managing director and head of branches at TD
Ameritrade, Inc.1 “Millennial parents are not too proud to
accept help from their own parents and, as a result, they may be more
likely to stay on-track with their long-term financial goals like
retirement and college savings.”

The survey of 1,000 U.S. millennial parents also found:

Nearly half (48 percent) of millennials have delayed parenthood
until they were financially secure.
Twice as many millennial
parents as grandparents (24 percent vs. 12 percent) strongly agree that
they waited until being financially secure before having children.

Millennials would have a third child, were it not for the expense.
If money were no object, they would have one more child, on average
(three instead of two).

More than half (54 percent) received financial support from their
parents in the past year.
Single parents were more likely to
receive parental support than those in two-parent households (63 percent
vs. 52 percent).

Fifty-six percent of millennial parents are grateful for the
financial help
, while a quarter (26 percent) feel embarrassed
Women are more likely than men to feel grateful (63 percent vs. 49

Three in 10 (30 percent) get help from “granny nannies.”
Millennials with parents who provide primary childcare receive 14.3
hours per week, and those with parents providing back-up childcare
receive 9.2 hours per week. Grandparents’ help with childcare and other
unpaid labor can save parents up to $300 per week.

The survey also included 1,000 U.S. grandparents with millennial
children and found:

Forty-eight percent of grandparents say their adult child is not
completely financially independent from them
However, five
percent have an adult child who is completely financially dependent.

Three-quarters say they are glad they’re able to provide financial
support despite the fact that 47 percent have had to make some
financial sacrifices to help an adult child.

Half (49 percent) of grandparents see this assistance as temporary.
However, nearly one in 5 (18 percent) grandparents expect to
continue providing financial support to their adult child for the rest
of their life.

The youngest and/or female adult child gets the most help.
Four in 10 (41 percent) grandparents with more than one adult child
say that the most financial support goes to their youngest child, and
the same number say the most goes to a female child.

“So what’s a good parent or grandparent to do? Work together to set
clear limits and expectations for financial support and child care and
discuss the tradeoffs to make the support possible,” said Lynch. “Both
generations can start planning for the future today by setting financial
. Putting in the time now can help establish a clear vision of
what financial well-being looks like down the road whether your dreams
include sending a child to college or retiring on the beach.”

About TD Ameritrade Holding Corporation

Millions of investors and independent registered investment advisors
(RIAs) have turned to TD Ameritrade’s (Nasdaq: AMTD) technologypeople and education to
help make investing and trading easier to understand and do. Online or
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1 TD Ameritrade, Inc. is a broker-dealer subsidiary of TD
Ameritrade Holding Corporation.

Brokerage services provided by TD Ameritrade, Inc., member FINRA (

About Head Solutions Group

Head Solutions Group (U.S.) Inc., is a leading market research partner
for Financial Services companies in North America. With offices in New
York, Toronto and Montreal, Head delivers the deep customer insights
that increase institutional knowledge and propel business action. TD
Ameritrade and Head Solutions Group are separate and unaffiliated firms
and are not responsible for each other’s services or policies.

About the 2016 Millennial Parents Survey

A 18-minute online survey was conducted with 2,018 American adults (half
millennial parents age 19-37, half grandparents age 50-70 with adult
children) by Head Solutions Group, between Oct. 20 and Oct. 26, 2016, on
behalf of TD Ameritrade Holding Corporation. The statistical margin of
error for the total sample of N=2,018 American adults within the target
group is +/- 2.1 percent. This means that in 19 out of 20 cases, survey
results will differ by no more than 2.1 percentage points in either
direction from what would have been obtained by the opinions of all
target group members in the United States. Sample was drawn from major
regions in proportion to the U.S. Census.

Source: TD Ameritrade Holding Corporation


TD Ameritrade Holding Corporation
For Media:
Rebecca Niiya,
Sr. Manager, Corporate Communications
Jeff Goeser, 402-597-8464
Director, Finance and
Investor Relations