How long does it take before Millennials stop making regular withdrawals from the Bank of Mom and Dad? Longer than you think. The Ascent from the Motley Fool surveyed 1,003 Millennials about the touchy topic of relying on your parents’ money as an adult.
Nearly two-thirds (63%) of Millennials are at least somewhat dependent on their parents. While a majority (72%) would like to be able to have their parents stop paying for their lives as soon as possible, nearly a third (28%) are in no rush to be cut off.
Only 37% of millennials are financially independent from their parents, and of those, 56% feel prepared to handle their own finances
Meanwhile, financially dependent millennials from ages 30-38 use their parents’ money to pay for 33% of their spending per month.
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Here are the top things parents pay for in full:
- Phone bill: 13%
- Car insurance: 10%
- Health insurance: 8% (Millennials aren’t covered on their parents’ plans after age 26)
- Rent/mortgage: 7%
- Video/streaming services: 7%
- Groceries: 5%
And here’s what parents chip in for partially:
- Groceries: 12%
- Rent/mortgage: 8%
- Student loan payments: 6%
- Car insurance: 6%
- Out-of-pocket medical costs: 5%
- Phone bill: 5%
Surprisingly, their parents don’t seem to mind paying: only 22% of parents are pushing their children to be more financially independent.
All this help made the recipients feel a variety of ways.
It’s a long and winding road – financial help doesn’t end when a child starts college, or end when they graduate. Student loan bills kick in, and entry-level job salaries are low. Rents are high in the cities that Millennials are increasingly flocking to, and it can be hard to get a raise.
It might not come as a surprise that the average Millennial reaches financial independence, on average, at the magic age of 31 years old.
And here’s the rub: despite this independence, 43% of Millennials say they wouldn’t pay their parents back (if they asked) for all those purchases since they turned 18. We’re betting that their parents wouldn’t think of asking anyway.
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