Gen Z and millennials want to be financially independent. Mascot — Getty Images
Unlike Peter Pan, millennials and Gen Z want to grow up. But today’s high cost of living has turned the younger generation from lost boys to lost adults, and many of them say it prevents them from becoming independent. The vast majority (68%) of them said their financial situation was ‘hurting their ability’, despite longstanding perceptions that they depended on their parents for frivolous spending on brunch and travel. reported in an Experian study. Become a financially independent adult. These younger generations face an even tougher battle when it comes to building wealth and getting what their parents did, thanks to the tough cards the economy has dealt them.
While millennials experienced the Great Recession and its tumultuous aftermath, Generation Z has become a sister to the economic woes in the short-lived coronavirus recession. Both of them are saddled with massive student loan debt, and as first-time homebuyers, both are facing real inflation for the first time in their lives, given the housing market’s downturn. No wonder so many people are unsure if they can have the future they dream of.
More than 70% of Gen Z and millennials surveyed by Experian say recent economic news (such as talk of an impending recession) and layoffs have made them more focused on their financial health. , understood personal finance, where most people said they would feel better if their situation improved. Many people are striving to become more financially literate and resort to any means possible, such as taking on more side jobs, looking into crystal balls for financial insight, or asking their parents for help. He said he lives by teaching.
Young people are far more likely to live with their parents than they were 50 years ago, and this trend has accelerated over the decades. When the pandemic hit, many young people returned home, reaching levels not seen since the Great Depression. Many have moved since then, but the trend hasn’t ended with lockdown. One in eight millennials facing financial insecurity will live with their parents in 2022. This cut some expenses and allowed me to save enough money to pay my rent and even buy a house. However, buying a home is still not an easy road for them considering baby boomers favor the same housing that young families want.
Some young people receive financial assistance from their parents’ wallets. According to another survey, 35% of her millennials say their parent pays at least one of her monthly bills. And some parents pour retirement savings into helping their children. With financial aid (whether in the form of an inheritance or a down payment for a big investment like a car or a home), some millennials are finally starting to feel things are turning around.
This is only happening later than the precedent set by past generations, but it’s all part of the new norm created by millennials choosing to stay longer in school and settle down later. . But that doesn’t mean young people aren’t feeling the delay, psychologist Jeffrey Arnett told Insider that it’s a typical feeling, especially for people in their 20s.
Assistant Professor Gale, 36, said: of fortune Alicia Adamczyk, “We graduated right after the financial crisis and I think we’re in a good place now, but it’s taken us a long time to get here.”