BURLINGTON –– New research reveals a financial role reversal: 50 percent of adult children in Vermont say they have lent money to their parents, according to a MarketBeat survey of more than 5,000 respondents.
The average total loaned by Vermont adult children is $900. Most cases involve practical needs rather than luxury spending: nearly half, 48 percent, of parents requested help with bills or day-to-day expenses, while 34 percent needed emergency support. Just 12 percent said the money went toward lifestyle purchases such as vacations or luxury items.
While 78 percent of children felt proud to help their parents, the survey revealed some tension: 8 percent said lending damaged their relationship, 6 percent admitted to resentment, and another 8 percent vowed never to lend again.
A surprising 22 percent said they would consider charging their parents interest.
The findings follow MarketBeat’s previous research showing parents themselves are increasingly charging children interest on loans, averaging 5.1 percent, compared with the national personal loan rate of 11.25 percent according to the Federal Reserve.
The broader survey reveals how families approach lending. Among parents, 29 percent won’t lend more than $100 at a time, while 15 percent are comfortable lending $5,000 or more.
Regarding repayment terms, 21 percent expect money back within a month, 21 percent within six months, and 15 percent are willing to wait up to a year.
Half of parents say rising living costs have changed how much they’re willing to lend. While 86 percent insist money hasn’t damaged family relationships, 14 percent admitted lending has caused lasting conflict.
“Family lending has always been about generosity,” said Matt Paulson, founder of MarketBeat.com. “What’s changing is that both generations are now on the hook. Inflation and tighter household budgets mean kids are stepping in to cover the basics, and parents are sometimes acting more like banks by charging interest. These transactions aren’t just about dollars — they’re tests of trust and responsibility within the family.”
