Parental Support Past Age 25 Is the New Normal: Study
April 24, 2019 by Bernice Napach
Today’s young adults are having a much harder time achieving financial independence than young adults in previous generations, according to a study by Merrill Lynch and Age Wave.
The study, the last of a series examining distinct life stages, surveyed a national sample of more than 2,700 young Americans, age 18 to 34, about the financial challenges they face, and the results are somewhat disturbing.
Although today’s young adults are better educated and more diverse with access to the latest technology and more freedom to determine their future, eight in ten respondents said they are having a more difficult time becoming financially independent than their parents and earlier generations, and 70% of their parents agree.
Financial Support From Parents
That’s not surprising since 70% of young adults — they’re referred to as “early adults” in the study — reported receiving financial support from their parents in the last year, to pay for such expenses as cell phone bills, rent or mortgages and student loans. Fifty-eight percent said they could not afford their current lifestyles if not for their parents’ support.