The Lingering Phone Bill: Adults and the Bank of Mom and Dad

For Kaylynn St. Peters, turning 27 was a double-edged sword. She landed an exciting job in entertainment booking, only to have the thrill tempered by her father’s decision that it was time she started covering her own phone bill. "I was kind of riding that high until they kicked me off," St. Peters recounted, a sentiment many young adults can likely relate to.

While some might view a late-twenties commencement of independent phone bill payments as somewhat delayed, statistics suggest St. Peters is actually quite typical. According to a recent AT&T survey, the average age at which Americans begin paying for their own cell service is 27. The survey further revealed that a significant 76% of Americans consider this financial responsibility a key milestone of adulthood.

However, the data also highlights a growing trend of delayed financial independence. The AT&T survey showed that 32% of individuals don’t start covering their own cell phone expenses until they reach 30 or older. Notably, a substantial 18% don’t take on this responsibility until after their 40th birthday, indicating that financial reliance on parents can extend well into what are traditionally considered middle-age years.

St. Peters’ experience reflects the financial realities many young adults face. Upon seeking her own plan, she received quotes of around $70 per month from major providers like T-Mobile and Verizon. Deeming this "kind of crazy," she opted to join her brother-in-law’s plan instead, reimbursing him approximately $40 each month through Venmo. This arrangement, according to the AT&T survey, is a common solution, with roughly 46% of people engaging in similar shared-plan scenarios.

Recognizing this trend, AT&T has introduced SplitPay, a feature designed to streamline the process of splitting wireless bills among multiple users. Erin Scarborough, AT&T’s President of Broadband and Connectivity Initiatives, emphasized the increasing prevalence of delayed financial independence among young people. She sees this as part of a broader trend of rising financial dependence on parents, extending beyond just phone bills. "I think that has definitely been going up year over year over year," Scarborough observed, highlighting the contrast to the financial norms of previous generations. "That was not the case 20 years ago."

The financial reliance on parental support isn’t limited to cell phone bills. A significant 70% of AT&T survey respondents believe that most Americans have access to at least one subscription service they don’t personally pay for, a practice that companies like Netflix are actively attempting to curb through measures against password sharing.

Factors such as inflation and escalating living costs play a significant role in this trend. In an increasingly challenging economic environment, turning to parents for financial assistance has become a common strategy for many Americans.

A savings.com survey conducted earlier this year found that half of parents with adult children regularly provide financial support. The average amount given reached a three-year high of $1,474 per month, marking a 6% increase from the previous year. Interestingly, the survey revealed that adult members of Gen Z (ages 18-28) receive more financial assistance from their parents than Millennials (ages 29-44). The average amount Gen Z receives in 2025 is projected to be $1,813 per month, compared to $863 for Millennials.

However, this financial support often comes with conditions. According to the savings.com survey, 77% of parents attach strings to their financial assistance. Essential expenses like groceries, cell phone bills, and rent or mortgage payments top the list of costs that parents help their adult children cover in 2025. On average, supportive parents provide $220 per month for groceries (83% of parents), $63 for cell phone bills (65% of parents), and $653 for rent or mortgage payments (63% of parents).

Health insurance and healthcare are also significant areas of parental support, with 54% of parents assisting their adult children with these costs. Tuition and other school-related expenses represent the most costly monthly expense for 45% of parents, averaging $1,198 per month. A smaller percentage of parents also contribute to their adult children’s investments, car payments, vacations, and student loan or credit card payments.

This level of financial support can place a considerable strain on parents. Nearly half of survey respondents reported sacrificing their own financial security to help their grown children. Working parents who provide financial assistance to their adult children contribute more than double the amount to their children’s expenses than they do to their own retirement accounts.

This situation can create tension within families. Jack Howard, head of money wellness at Ally Financial, notes that this is a recurring theme in the financial wellness and education workshops she leads. Howard shared an anecdote about a mother who expressed her frustration with still paying her son’s phone bill. The son, unaware of his mother’s discontent, immediately offered to take over the expense.

To avoid such awkward and potentially damaging parent-child dynamics, Howard recommends initiating financial conversations early and often. However, she acknowledges that this can be challenging for parents who grew up in families where discussing money was taboo. "I’m hearing that in a lot of our classes. ‘We didn’t talk about money. It was taboo. It was seen as disrespectful.’ But now with social media, when you think of Gen Z, there’s so much access to information and transparency that they expect that from (their parents)," Howard explained.