Americans Are Rewriting Household Budgets to Make Room for Extended-Family Support

As financial pressures intensify across the U.S., a growing number of consumers are shouldering an obligation that rarely shows up as a line item in household budgets: financial support for extended family members and friends.

Even as incomes fluctuate and expenses rise, helping others remains one of the most durable financial commitments American households maintain.

Supporting Others Is Now Widespread

According to the December 2025 PYMNTS Intelligence Paycheck-to-Paycheck report, nearly 7 in 10 U.S. consumers provide financial support to someone else using their own income.

That support often extends well beyond a partner or underage children. Thirty-one percent of consumers provide assistance to extended family members or to parents, siblings, former spouses or close friends.

The burden is especially pronounced among consumers already under stress. Nearly two-thirds of those struggling to pay their own bills still support others, and 36% of paycheck-to-paycheck consumers who are struggling help extended family or nonfamily members.

A particularly strained group, representing 16% of all consumers, supports both their nuclear household and additional family members simultaneously, placing them under the greatest financial pressure.

Demographics matter, as shown in the report, titled “How Financial Support Beyond Family Is Breaking Household Budgets.”

Millennials stand out as the most likely generation to provide support, with 80% doing so. More than one-fifth of millennials support both immediate and extended networks at the same time, reinforcing their role as the financial backbone for multigenerational and extended households.

Support levels drop among older generations, with just over half of baby boomers providing financial assistance to others.

The Financial Strain Beneath the Surface

Providing support is not a marginal expense. Consumers typically cover about half of a dependent’s living costs, and those living paycheck to paycheck and struggling to pay bills often shoulder roughly half of their extended family’s annual expenses. Peak financial responsibility for immediate family members remains high regardless of income or financial lifestyle, underscoring how non-negotiable these obligations have become.

As financial strain increases, the ability to absorb these costs weakens. Consumers under pressure report higher peak coverage for extended family needs than financially secure households, suggesting that dependency often expands rather than contracts during periods of stress.

While higher-income consumers are more likely to support nonfamily dependents, lower-income and struggling households face sharper trade-offs when doing so.

How Households Stretch Their Budgets

To make supporting others possible, households rely on a mix of planning, sacrifice and adjustment, with strategies shifting as financial pressure mounts.

Formal budgeting and planned income allocation remain the dominant strategy, used by roughly two-thirds of consumers to maintain stability while meeting dependent obligations.

Cost-cutting becomes more common under strain, with nearly 1 in 10 struggling consumers reducing essential expenses such as food or utilities to free up cash.

Reliance on credit rises sharply as budgets tighten, with struggling paycheck-to-paycheck consumers using credit nearly four times as often as those not living paycheck to paycheck.

Labor adjustments also play a role, particularly among younger consumers, who are more likely to work additional hours or take on extra jobs to meet dependent needs.

Coordination and cost-sharing with other family members remain relatively uncommon, even among households under the greatest pressure, leaving many consumers to absorb the burden alone.

What This Means for Banks and FinTechs

The persistence of extended financial support highlights a growing gap between household obligations and the tools available to manage them. PYMNTS Intelligence findings point to rising demand for budgeting tools that account for irregular, dependent-related expenses rather than treating them as anomalies.

Banks and FinTechs can play a role by offering more flexible cash-flow forecasting, real-time balance visibility and alerts that reflect recurring support commitments. Products that help consumers smooth income volatility, manage short-term liquidity needs or reduce reliance on high-cost credit could directly address the pressures facing households supporting others.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.