Just because you’re an adult doesn’t mean you’re independent. Even after they become fully-fledged adults, many Millennials still rely on their parents’ money to get by. More than half of Millennials ages 21 to 37 get financial assistance from their parents or a relative, Country Financial Security Index reports.
For many, Mom and Dad are still footing the bill
Millennials get their parents to help pay for their phone bills (41%), groceries and gas (32%), as well as urgent day-to-day needs like rent (40%) and health insurance (32%). Although more millennials are beginning to head out on their own and live away from their parents, about 31% of young adults still lived at home with their parents in 2017.
Needing their parents’ help should not be viewed as a failure to launch, but as a signal that Millennials need longer to reach financial independence. Two in five Millennials did not think they would be able to pay for everything on their own until at least age 25.
Doyle Williams, an executive vice president at Country Financial, advised Millennials to take the long view if they wanted to reach financial independence: “Take simple steps such as building an emergency fund, saving for a down-payment on a home, and staying focused on your long-term goals. Doing so will ensure you don’t rely on your parents forever.”
More from Ladders
- 76% of young adults believe they’ll be better off financially than their parents
- The disconnect between Baby Boomers and Millennials when it comes to work ethic
- Americans spend an average of nearly $3,000 annually on vices
- How to become a millionaire by 25
- The Top 10 travel destinations, according to Millennials