Mom and Dad are still paying bills for their kids after 30 in the US: “That was not the case 20 years ago”

Are you over thirty and still on your parents’ cell phone plan? You are not alone.

A new survey from AT&T, reported by USA Today, finds that around a third of those over thirty are still on the family plan, and close to a fifth of those over forty can say the same.

In some circles, paying one’s own cellphone bill is a sign of adulthood. While some take a free ride on their parents’ plan, others pay their portion of the bill, typically a much smaller sum than if they were to open their own account.

AT&T has noticed the growing trend of children staying on the family plan, with the company’s President of Broadband and Connectivity Initiatives, Erin Scarborough, telling USA Today that the phenomenon is just one example of the increased financial reliance younger generations have on their parents today.

AT&T tracks information on how the costs are split, as it is an important piece of their business model. They have tracked increases “year over year over year,” explained Scarborough, adding that the rates they see today "were not the case 20 years ago.”

Comparing the finances across generations

Typically, as a generation ages, their income increases as they spend more time in the workforce. However, Millennials and Generation X face a very different economy than that of their grandparents and parents.

A 2024 report published by the Federal Reserve Bank of St. Louis compared wealth across baby boomers (1946-1964), Generation X (1965-1980), and millennials (1981-1996) at the age of 30, to evaluate differences in financial status “at similar points in their life cycle.” The study converted the incomes into a standard dollar measurement to control for inflation.

The study found that the level of debt among millennials was close to double that of baby boomers, standing around $90,000 (in 2019 dollars), but only around $4,000 higher than Generation X.

For the two younger generations, educational debt was significantly higher than that held by baby boomers when they were 30:

However, on the whole, Generation X had more wealth at thirty than baby boomers or millennials. When we look at homeownership, we find that generational analysis can obscure some inequalities within and among different age groups. For instance, the Federal Reserve has also reported that only around 38 percent of college-educated millennials, in general, those with a college degree, earn higher incomes and own property. For baby boomers, the rate of home ownership for the same demographic was over half.

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