How much do you think the average pair of Connecticut parents charge their grown kids in interest for a loan?
“MarketBeat.com, a leading financial media company, surveyed 3,014 parents and found that an increasing number are charging their adult children interest on family loans,” according to a the site.
How did Connecticut fair nationally? Below the national average of 5.1%, according to MarketBeat.com, with Nutmeg parents on average charging 4.6% interest.
For borrowing adults in Connecticut, be happy you do not live in Nebraska or Oregon. According to MarketBeat.com, both states tie for the highest interest rate of 6.8%. Even so, that number is lower than the 11.25% national average for personal loans.
Check out these other interesting findings from MarketBeat.com:
Here’s what parents in Connecticut revealed about how they lend, what they expect back, and where emotions come into play:
How much would you feel comfortable lending at one time?
- Less than $100: 29%
- $100–$499: 26%
- $500–$999: 16%
- $1,000–$4,999: 14%
- $5,000 or more: 15%
When do you expect repayment?
- Within 1 month: 21%
- Within 6 months: 21%
- Within 1 year: 15%
- More than 1 year: 8%
Half of parents say rising living costs have changed how much they’re willing to lend. For some, generosity remains untouched; for others, the purse strings are tightening.
When it comes to the emotional side of lending, the split is just as telling:
- 59% are happy to help with no stress.
- 27% say they’ll do it if necessary, but aren’t thrilled about it.
- 4% admit to feeling resentful.
And what about family drama? 14% of parents confessed that lending money has damaged their relationship with their adult children, while 86% insist it hasn’t.
“The Bank of Mom & Dad has always been generous, but even generosity comes with boundaries,” said Matt Paulson, founder of MarketBeat.com “What’s striking is that while most parents don’t expect repayment – and certainly not at commercial interest rates – inflation and rising costs are starting to reshape how families think about money. In many cases, these family loans aren’t just financial lifelines; they’re also emotional transactions that test trust, responsibility, and family dynamics.”