There’s no way around it: it’s expensive to be a Millennial. With a historic amount of student debt, rising rents, and stagnating wages, Millennials need all the help they can get…and it’s coming from their parents.
Which Bills Are Millennials’ Parents Covering?
According to a new survey by Instamotor.com, even with full-time jobs, 24% of Millennials still relied on their parents to pay some of their bills.
The survey found that 80% of the respondents who were receiving help were no longer living in their parents’ house.
Which bills are parents helping Millennials cover?
- 53% cell phone
- 31% car insurance
- 30% utilities
- 30% general car payments
How Much Are Parents Sending Per Year?
A recent New York Times article citing data from the P.S.I.D. Transition to Adulthood Supplement survey found that about 40% of 22-24 year olds receive some financial assistance from their parents for living expenses, averaging about $3,000 a year. These numbers tend to vary slightly depending on career path and geography.
The also survey found that 53% of young people who aspire to have a career in art and design receive rent money from their parents, with an average of $3,600 a year. On the other hand, Millennials who work in farming, construction, retail and personal services receive the least amount of financial support.
In terms of geography, young people living in large urban areas are 30% more likely to receive rent money than those living in smaller cities.
The Hidden Driver Behind Millennials’ Need for Financial Support
Though these numbers are staggering, they don’t seem quite so surprising when you consider that the average college student now graduates with nearly $40,000 in debt. This debt is not equal across demographics, either.
According to a recent survey by LendEDU, men tend to have more debt than women, and white and Asian college graduates tend to have more debt than their black and Hispanic/Latino peers.
What Effect Will This Have on Baby Boomers?
In our keynote speeches and research, we emphasize that parenting styles are one of the main influences on generational behaviors. And as Millennials gain more independence from their parents, how will this trend shift over time?
And finally, what does this mean for Baby Boomers who want to retire in the coming years? Will they have enough money to leave the workforce?
Only time will tell! But we will stay on top of the trends and make sure to share our findings with you!
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