More families are turning to the "Bank of Mom and Dad" to help buy homes and cover expenses.
But experts warn those loans can come with hidden risks.
An Australian study found that parents and their adult children often had very different ideas about whether the money was a gift or a loan.
Researchers said many families never put the terms in writing, creating potential conflict if relationships, finances or future living situations change.
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Researchers found that these financial arrangements could become "fuzzy," especially if the status of the money changes over time.
What may have started as a loan could later be redefined based on the financial circumstances of the adult child.
Relationships NSW CEO Elisabeth Shaw says money remains something many people do not want to discuss.
"With money, there can be the fear of triggering shame," Shaw said.
Parents may try to protect their children from feeling bad about needing a loan, making the terms of the arrangement unclear or nonexistent.
"It can result in a loan that comes with all sorts of unspoken ties that can come back to bite people," she added.
The advice: Have the tough money conversation upfront and document any agreement in writing.
