When people talk about “the Bank of Mom & Dad,” they usually picture interest-free loans and flexible repayment terms.
But as our new state-by-state breakdown shows (based on a survey of over 3,000 parents), not all parental generosity comes without strings.
Some parents are treating loans to adult children more like business transactions, and the rates they charge vary widely depending on where you live.
Key Findings:
The top 5 toughest lenders were:
- Nebraska: 6.8%
- Oregon: 6.8%
- Mississippi: 6.5%
- Georgia: 6.4%
- Arkansas: 6.3%
Regional contrasts are striking.
Southern states like Alabama and Virginia (6.0%) keep their kids on the hook at above-average rates, while nearby West Virginia bucks the trend dramatically at just 2%.
That’s one of the lowest in the nation, highlighting how sharply lending habits can differ even between neighboring states.
East Coast states lean softer.
Parents in Delaware (2.0%) and Maine (4.0%) are among the most forgiving.
Even big financial hubs like New York (5.2%) and New Jersey (5.1%) are close to the national average, rather than leading the pack in tough terms.
Western generosity comes with caveats.
California parents lend at 4.7%, which is lower than most states, while nearby Oregon charges the highest rate in the country.
It seems that on the West Coast, whether you get a bargain or a bill depends heavily on your ZIP code.
Small-state parents are kinder than you would think.
Montana (3.0%), Nevada (3.4%), and Rhode Island (5.2%) all rank below the national average. For adult children, moving back home in one of these states might literally pay off.
Final Thoughts
The numbers make one thing clear: there’s no single standard for what parents expect back when they lend money to their adult children.
Some treat it as a financial lesson, attaching rates that rival personal loans, while others see it purely as family support with little cost attached.
What’s fascinating is how geography shapes those attitudes - generosity in one state, strict repayment in another.
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