Here are 4 facts about how the average millennial handles achieving financial independence.
1. Approximately 63% of millennials say they’re dependent on their parents for finances
One of the main reasons young adults today are in this situation is college and university today is far more expensive. To put it in perspective, 60% of colleges and universities are unaffordable to households earning more than $100,00 per year.
2. The average millennial becomes financially independent at age 31
The majority of these adults don’t take pleasure in using their parents’ money for their finances, and most of them also say they would like to shed their dependence on their parents as soon as possible.
3. Financially dependent millennials rely on their parents for roughly 32% of their bills
Aside from hefty student loan payments, millennials are also having trouble with affording health insurance. The most common things parents are helping their kids with are rent and groceries.
4. Only 22% of parents are pushing their millennial children to become financially independent
So it seems like parents are not in much of a rush to encourage their adult children to launch into independence. That’s an unpleasing contrast to the 72% of millennials who say they want to ween off their parents’ money ASAP.
Millennials who achieved financial independence between ages 20 and 24 earn an average of $45,396 per year, but on average earn a whopping 20% less than baby boomers did when they were the same age.
By Marc Charles for Money Talk Radio