Let's face it. The First Idaho Bank of Mom and Dad has always been a resource for young adults. When you were under the age of thirty, you would have no shame in asking your parents to help you pay for a vacation or a laptop or that expensive toy that your child just couldn't live without. The best part about the Bank of Mom and Dad is that they forgive poor credit history. They don't require collateral, and they have very generous repayment plans.
According to research by USAWillGuru.com, since the COVID crisis, loans have been granted by parents even more. Instead of lending money to their kids for wants, they are covering the costs of needs. Rent, car payments, groceries, and childcare costs are the most popular requests of Gen Z and Millennials for funds from their parents. These loans are interest-free, and most of the time, repayment plans aren't even discussed.
The problem with the First Idaho Bank of Mom and Dad in 2021 is that their funds aren't what they used to be. Over half of parents who have been asked by their kids for a loan weren't able to provide the full amount. Those parents say that they aren't confident that they will ever be repaid either.
Many Millennials and Gen Zers have moved back in with their parents, and almost 75% of them are now living rent-free. The living situation is a way that some Idaho parents are helping their young adult children during the pandemic because they aren't able to provide money.