July 9th 2023.
Recent studies from credit agency Experian have revealed that Millennial and Gen-Z adults are struggling to become financially independent. When asked if they still rely on their parents for financial support, only 28% responded that they are entirely independent. The remaining majority of participants said they were somewhat or very financially dependent on their families, and 70% of these same respondents expressed that they feel ashamed to have to ask their parents for help.
The results of this survey shed light on the current state of the economy and job market, which can make living completely on one's own difficult. With rising inflation, increased cost of living, and staggering student loan debt, the circumstances for many adults between the ages of 18 and 42 make it nearly impossible to be independent or build wealth. Despite a recent pause on student loan debt repayment and inflation cooling down, the financial struggle persists.
Part of the problem can be attributed to modern spending habits. Nearly 60% of those surveyed admitted they battle impulsive buying, and the attitudes surrounding saving money for a home or retirement make these goals seem less desirable and achievable than they were for previous generations. Two-thirds of millennials and Gen-Z adults prioritized life experiences over building wealth.
Another factor could be the financial savviness of their families. While some young adults choose to plan and strategize on their own due to their parents' lack of financial expertise, others are left completely in the dark, as approximately a third of those surveyed said their parents never taught them about finances.
In today's society, wealth-building is an increasingly difficult feat, especially in Black communities. This study, which did not disclose race, only serves to further illustrate how Black families must be financially knowledgeable and open in order to equip their younger generations for success.
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