According to a new Experian report, millennial and Gen-Z individuals are failing to achieve financial independence. When asked if they still rely on their parents for financial help, just 28% said they are completely self-sufficient.
Financial Dependency and Economic Anxiety Plague Millennials and Gen-Z
Furthermore, more than half said they were “somewhat or very” financially dependent on their relatives. 70% of respondents expressed embarrassment at having to rely on their parents for financial support.
These numbers reflect a deeper anxiety about the economy’s and job market’s instability, as growing inflation raises the cost of living. In addition, for many people, living totally on one’s own is financially impossible due to enormous student loan debt.
Although two of these difficulties have subsided significantly, with student loan debt payments put on hold until the autumn and inflation having slowed. Many individuals between the ages of 18 and 42 find it nearly hard to be self-sufficient or wealthy.
Part of the problem originates from current purchasing patterns, as over 60% of those polled confess to being prone to impulsive purchases. The attitudes towards investing for a home or retirement make these milestones appear less attainable and desired. Millennials and Gen-Z individuals are more likely than earlier generations to prioritise life experiences financially.
Another possible explanation?
The financial savvy of their families. Young individuals either avoid or avoid financial planning. Alternatively, based on their interpretation of the event, they might follow the decision-making set throughout their upbringing. While some say their parents are poor financial role models. As a result, they are compelled to plot on their own, while others are entirely in the dark about their expenditures. The second is less typical, with almost one-third of respondents stating their parents never educated them about money. However, the former accounts for about half of the participants’ experiences.
Building wealth in today’s culture is a financial issue, particularly in Black communities. The data presented in this study, which did not indicate race, further emphasises how financially savvy Black households must be. And accessible so that the next generation is well-prepared for their future.
