Millennials rely on their parents for money and a place to live
Did you know that the majority of millennials still receive money or other financial assistance from their families? More than half of Americans aged 21 to 37 have received financial assistance from a parent, guardian, or family member, according to Country Financial.
Why is it that today, the generation that makes up the majority of the population can’t seem to fully leave the nest?
Business Insider states that “About 37% receive money monthly, and more than half (59%) receive money a couple times a year.” Many millennials are using this money for necessities including groceries, rent, utilities, and other basic needs. This even includes millennials that have moved out, gotten married and had children of their own. The following are just some of the many reasons given for the assistance from parents:
- I want them to have an easier time starting out than I did
- I help them because I know they need help
- I feel it is my responsibility as a parent
- The economy is tough
- It makes me feel good to help my children
- They asked me
- They expected me to help
For these reasons and more, parents have been handing out thousands of dollars per year for their kids to get started on their own to just to make life a bit easier for them. And there are economic reasons millennials turn to assistance from their family. For example, financial situations have changed from what they were back in the baby boomer days. Gas is no longer less than a dollar per gallon, the median rent has gone from $588 in 1960 to $1,600 today, and tuition repayment has hit an all-time high. For all of these reasons, it’s no wonder that young adults are asking for extra help and having trouble leaving their parents’ houses even after graduating from school and working a fulltime job.
All that considered, it makes sense that cutting one of the biggest expenses for as long as they may actually be benefiting the younger generation by giving them the ability to put money aside a little at a time. By cutting out the rent and utilities, millennials are better able to get a proper start on their lives rather than jumping in and living beyond their means.
The other reason millennials are living at home or with family is that they tend to boomerang. Meaning, they will move out of mom and dads, only to find that the rising cost of living expenses, insufficient jobs, increase in debt from student loans, and many other factors will cause them to have to forfeit their attempt at leaving the nest and have to return to a place they know they will be provided for rather than ending up on the streets. Again, millennials tend to do this to capitalize on their savings and getting back on their feet financially. In the long run, living with mom and dad or accepting money from them isn’t uncommon anymore as it is almost necessary to survive all the rising costs just to survive in today’s day and age.
Are you funding a millennial in your home? Worried about the extra expenses and don’t want to empty your emergency cash stash, a LendingPoint loan may be a great option.
LendingPoint is a personal loan provider specializing in NearPrime consumers. Typically, NearPrime consumers are people with credit scores in the 600s. If this is you, we’d love to talk to you about how we might be able to help you meet your financial goals. We offer loans from $2,000 to $25,000, all with fixed payments and simple interest.