More Than Half Of Young Adults Are Struggling To Be Self Sufficient & Depend On Family For Money

In a recent study from credit agency Experian, millennial and Gen-Z adults are struggling to become financially independent. When asked if they still rely on parents for financial support, merely 28% responded that they are totally independent from their families.

In addition to this, over half claimed that they were “somewhat or very” financially dependent on their families, with 70% expressing that they feel ashamed of having to ask their parents to help fund their livelihood.

These statistics reveal a deeper concern about the unstable economy and job market, as rising inflation, increased cost of living, and insurmountable student loan debt make living completely on one’s own unrealistic for many financially.

Although two of these issues have quelled slightly, with student loan debt repayment on pause until the fall and inflation having cooled down, the circumstances for many adults from ages 18 to 42 make it virtually impossible to be independent or build wealth.

Part of the issue stems from modern spending habits, as nearly 60% of those surveyed admit they struggle with impulsive buying. The attitudes surrounding saving money for a home or retirement make these milestones seem less obtainable, and wanted, than for previous generations, with two-thirds of millennials and Gen-Z adults sharing that life experiences are more of a financial priority.

Another probable cause? Their families’ financial savviness. Young adults either shy away from financial planning or follow the decision-making already established during their upbringing, depending on their take of the experience. While some believe their parents are not great examples of financial aptitude and thus are forced to strategize on their own, others are left completely in the dark in regards to their spending. The latter is less common, with approximately a third of surveyors saying their parents never taught them about finances, but the former is almost half of the experiences of the participants.

In today’s society, wealth-building is a fiscal challenge, especially in Black communities. The data revealed in this study, which did not disclose race, only implies further how Black families must be financially knowledgeable and open so that those of younger generation are well-equipped for their futures.