Life Events and Black–White Differences in Adult Children’s Financial Assistance to Mothers

Abstract Background and Objectives Parents who experience life events with negative economic consequences may rely on adult children for financial assistance. This study provided national estimates of Black and White mothers’ financial help from adult children. It also examined whether the Black–White difference in the likelihood of a mother’s receipt of financial assistance persisted after accounting for life events reflecting parental need and children’s ability to provide help. Research Design and Methods The Health and Retirement Study was used to examine late middle aged (51–70) Black and White mothers’ financial help from adult children. Cross-sectional point estimates of financial help from noncoresident and coresident children were based on pooling these data. Random effects logistic regression at the mother-wave level was used to estimate the likelihood of receipt of financial assistance from noncoresident children. Results On average, 9% (8%) of Blacks and 3% (4%) of Whites reported help from noncoresident (coresident) children in a given interview wave, but Blacks received lower amounts. Changes signifying greater parental financial need and noncoresident children’s greater resources were positively associated with receiving financial help from noncoresident children. After accounting for these factors, race differences remained. Discussion and Implications Black mothers are more likely to rely on children for financial help than Whites. Since this help hinges on the ability of their children to provide, the strength of Blacks’ economic safety net as they age also depends on the socioeconomic well-being of the younger generation.