37% of U.S. Parents Rely on Baby Boomer Financial Support as Childcare Costs Hit 20% of Income

Nearly two in five U.S. parents with young children, or 37%, expect financial help from their parents or grandparents over the next year, according to the BMO Real Financial Progress Index. The finding underscores a shift away from waiting on the so-called Great Wealth Transfer, estimated at $124 trillion through 2048. BMO reported that 82% of American parents say the cost of raising children has "gotten out of control," while 86% say everyday expenses including daycare, after-school programs and school supplies are making it harder to save for their children's futures. Among parents expecting assistance, 43% depend on grandparents for childcare and 26% expect help funding a 529 plan. Care.com's 2026 Cost of Care report found parents spend roughly 20% of annual income on childcare, with one in five spending over $30,000 a year. The U.S. Department of Health and Human Services sets 7% of family income as an affordability benchmark. BMO also found 60% of Gen Z homeowners and 57% of Millennial homeowners said they could not have purchased a home without family financial support.