4 Surprising Money Facts About the Average Millennial|| you don't know
1. about sixty-three of millennials say they are financially dependentNearly two-thirds of millennials admit they are at least somewhat dependent on their parents to help pay their bills, according to The Ascent.
One reason why many millennials are struggling financially is that the price of college has increased substantially. In fact, among households earning quite $100,000 annually, 60% of U.S. colleges and universities are unaffordable, according to a study from the Institute for Higher Education Policy. The numbers area unit even grimmer for lower-earning households: a minimum of ninety-fifth of U.S. colleges are unaffordable for families earning less than $70,000 per year. The students with the best chance at being able to afford most colleges had a household income of at least $162,000 per year, the study found.
As a result, many millennials are saddled with massive student loan debt, making it difficult or nearly impossible to repay their loans while still being able to afford daily living expenses.
2. the common millennian becomes financially freelance at age thirty one
Of the millennials who are considered financially dependent, the average person doesn't wean off their parents' money completely until age 31, according to The Ascent.
That doesn't mean, though, that these millennials are taking advantage of their parents' generosity, happily taking their money for as long as they can. Nearly three-quarters (72%) of millennials say they want their parents to be able to stop paying their expenses as soon as possible.
In addition, nearly hr of financially dependent millennials say that hopping on their oldsters for cash makes them feel embarrassed, and roughly [*fr1] say they feel guilty regarding it. Further, the majority of millennials implied they'd be willing to pay their parents back for their purchases -- only 43% said they would not pay back all the expenses their parents have paid for since age 18.
3. Financially dependent millennials rely on their parents for roughly 32% of their bills
Among millennials who rely on their parents for money, the average respondent needs help covering roughly one-third of their bills, according to The Ascent.
The most common expenses partially funded by parents include groceries, student loan payments, and rent. But several oldsters conjointly totally get expenses just like the account, car insurance, and health insurance.
Besides soaring student loan payments, millennials are also struggling with health insurance. Millennials are the most likely of any generation to go without health insurance, with 16% admitting they are uninsured, according to a report from the Transamerica Center for Health Studies. Among millennials WHO do not have insurance, 60% said it was because they couldn't afford it. With that in mind, it makes sense for concerned parents to pay for their adult children's health insurance to prevent them from the risky move of remaining uninsured.
4. solely twenty-second of fogeys area unit pushing their millennian youngsters to become financially freelance
Although the bulk of millennials say they require their oldsters to prevent paying their bills as shortly as doable, most parents are seemingly in no rush. When asked WHO was pushing them to become additional financially freelance, only 22% of millennials said their parents were encouraging independence, according to The Ascent survey. Far more millennial respondents (60%) said they were pushing themselves to start paying all their own bills.
Millennials WHO achieved money independence between ages twenty and twenty-four earn a median of $45,396 per year, The Ascent found. However, the average millennial salary hovers around $35,000 per year, according to a study from SmartAsset using data from the Bureau of Labor Statistics. That's two hundredth less than the common earnings baby boomers were earning after they were a similar age as today's millennials. With lower financial gain and growing expenses, it's no surprise it takes longer for millennials to become financially independent than their older counterparts.
Achieving money independence is not simple, especially with expensive student loans, increasing costs of living, and lower salaries. Many millennials area unit still looking on their oldsters to assist pay the bills, however, the great news is that the majority of them don't need to measure that method forever and are doing what they can to become independent -- a promising move for both millennials and their parents.