The bank of mom and dad! Study reveals where parents pay the most to support their adult children – with the average family forking out over $700 a MONTH

More than half of parents still provide financial support to their adult children up to the age of 40, new figures show.

USA today surveyed parents with children between 22 and 40 years old. About 65 percent said they were still providing their children with money, giving away an average of $718 a month.

Those funds contributed to expenses such as groceries, rent, utilities, phone plans, health insurance and even streaming services, the study found.

The findings reveal how many Generation Z and Millennials are still struggling to make ends meet financially.

Although many parents in the US acknowledged providing help to their adult children, one in three say this puts them under financial pressure.

The survey found that parents in California, Washington and Virginia offered their children the most help: more than $800 per month. Meanwhile, those in Iowa contributed the least, with an average of $349 per month.

The study also analyzed the percentage of parents in each state who helped their children.

Parents in Washington, New Jersey and Virginia were the most likely to provide financial assistance to their adult children, while those in North Carolina, Pennsylvania and Wisconsin were the least likely.

Where the financial contributions go also varies by state.

On average, parents thought children should be financially independent by the age of 24, the study found

Parents in Louisiana, Georgia and Texas were most likely to help with smartphones and phone plans. Parents in Colorado, Washington and California, meanwhile, were the most likely to pay the cost of subscriptions like Netflix and Spotify.

Those in New Jersey, Pennsylvania and California would most likely help pay off debt.

And many suggested they didn’t think they should be supporting their older children at all. On average, American parents thought children should be financially independent by age 24.

In New York, where the cost of living is higher, parents said children should be financially independent on average around age 26. In New Mexico, Nevada and Oregon, parents expected their children to be independent by age 23.

Wall Street “Oracle” Meredith Whitney recently claimed that younger generations have lost more than $21 trillion in equity that older generations built through home ownership.

Meredith Whitney, dubbed the ‘Oracle of Wall Street’, has warned that not owning homes is hurting the younger generation

The analyst, who successfully predicted the 2008 financial crash, noted that more young people are now also living at home with their parents than has historically been the case.

“What’s incredible is that 70 percent of US residential real estate is owned by people over 50,” she told DailyMail.com.

Figures from the National Association of Realtors show that the average age of a first-time homebuyer is now at an all-time high of 36.