Slightly more than three-quarters of parents are contributing to their children’ s large, onetime expenses such as a wedding or a house, and 63 % are helping with everyday expenses, the study said. At the same time, 36 % worry that the expense may affect their other financial goals.

However, of those parents who work with a financial advisor, 96 % feel they will be able to meet their financial goals and 78 % feel their advisors were helpful in making financial decisions about their children, the study said.

“ Parents are watching their adult children navigate the evolving economic realities of the post-pandemic era, and it’ s understandable that they want to step in and help their children establish a solid financial foundation,” Deana Healy, vice president of financial planning and advice at Ameriprise, said in a statement.“ As they do, parents should be mindful of how the choices they’ re making to support adult children today and into the future impact their own goals, particularly for retirement.”

The survey showed that one-third of parents were contributing to their children’ s education for such things as graduate school. Almost all also agreed they would let children over the age of 21 live with them if needed. Forty-five percent of the parents were paying for their children’ s health insurance.

In addition to the ongoing support, nearly half of the parents plan to leave an inheritance, with nearly one-third also giving monetary gifts during the parents’ lifetimes, the study said.

“ As parents strive to support their children into adulthood, many navigate a complex trade-off— how to help without hindering financial independence, while also protecting their own financial future,” the study said.

“ No matter the size or timing of their financial support, parents can empower their children by encouraging thoughtful trade-offs between short-term wants and long-term goals,” Healy said.

— Karen DeMasters

AI Chatbots Aren’ t Immune To Giving Bad Money Advice, Studies Find

Continued from page 9

Claude also received a“ C” when it said,“ Consider income-only distributions, trustee discretion for principal, creditor protection provisions, substance abuse restrictions, and incentive provisions for employment or education.”

Perplexity received a“ B” with its answer,“ Staggered outright distributions over time; using a discretionary trust where the trustee controls access; mandating drug testing or other behavioral requirements; allowing the trustee to withhold distributions for substance abuse or legal issues.”

Only Google AI Mode received an“ A,” saying,“ For children who struggle with managing money, consider these trust restrictions: Conditions for payouts: Require them to meet specific conditions before receiving distributions, such as completing financial counseling, maintaining employment, or reaching a certain age. Trustee management: Name a responsible trustee( individual or professional) to oversee the trust and make distributions according to your wishes. Incentive trusts: Structure the trust to reward positive behavior; for example, matching their earned income or providing funds only for education, home purchases, or business investments. Spendthrift provisions: Include a spendthrift clause to protect assets from creditors and lawsuits. Ensure it’ s carefully drafted to avoid being too restrictive or too lenient, says Trustworthy: The Family Operating System.”

“ AI chatbots can be a great starting point for understanding the basics and importance of estate planning,” wrote Matt Morris, CEO of EncorEstate Plans, in the study report.“ But relying on AI solely to do all things estate planning— from analyzing estate documents to providing recommendations— leaves a lot to be desired.”

— Jennifer Lea Reed

NOVEMBER 2025 | FINANCIAL ADVISOR MAGAZINE | 11