Young people in the U.S. take longer to reach ‘key life milestones’, including Economic independence According to the Pew Research Center, independent living from parents is more analyze Posted Tuesday.
In 2021, 21-year-old adults are less likely to be employed full-time; financially independent, living alone, or married; or have children than their predecessors in 1980.
An analysis of Census Bureau data shows today’s young adults are closer to full-time employment and financial independence by age 25. Financial independence is defined as a single income of at least 150% of the poverty line.
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Some 39% of 21-year-olds are working full-time in 2021, up from nearly two-thirds in 1980. The analysis found that only a quarter were financially independent from their parents, up from more than 40% in 1980.
Ted Rossman, senior industry analyst at Bankrate, said there are several reasons for the differences between each group, including higher college enrollment over the past 40 years. Nearly half of 21-year-olds are in college today, up from 31 percent in 1980, according to the Pew Research Center.
There may be other challenges facing today’s crowd.
“I think young people today face a lot of higher housing costs, Buying cars, food and gasoline, Rothman said. “So I think there’s a strong inflationary component.” “
“Look at your own situation first”
While many parents are eager to help their offspring, it can come at a high price. The Bankrate report found that more than two-thirds of parents have made or are making financial sacrifices — such as not saving more for retirement or an emergency fund, or paying down debt — to help their adult children.
“A big theme of our investigation is that you need to put on an oxygen mask before you can help another person,” Rothman said.
Paul Golden, managing director of the National Foundation for Financial Education, said it was important to “check your own situation” before offering to help your adult children.
Before giving your child a loan or allowing him or her to move back into your house, work together to determine how long this will last.
Paul King
Managing Director, National Foundation for Financial Education
If you decide to help, you need to have a time-bound plan in place.
“Before giving your child a loan or allowing him or her to move back into your house, work together to determine how long this will last,” he advises.
Golden adds, “One of the best ways to help your adult children lead a healthy financial lifestyle is to demonstrate the behaviors you want them to emulate.”