In Times of Economic Uncertainty, Young Adults Seek Support from Their Parents

**Millennials and Gen Zers Still Depend on Parents for Financial Assistance**

Millennials and Gen Zers continue to rely on their parents for financial assistance, despite the challenges they face. A recent survey by Experian found that 77% of young adults still depend on their parents for money. This reliance is largely attributed to the difficult economic climate they have come of age in, including graduating into recessions, managing massive student loan debt, and facing high levels of inflation. Even high salaries no longer provide the same level of financial security for these generations.

**Higher Dependency among Gen Z**

Gen Zers, the younger of the two generations, are more likely to rely on their parents for money, with 61% admitting to this dependence. Meanwhile, 47% of millennials still turn to their parents for financial support. This trend can be attributed to the fact that Gen Zers are at the beginning of their careers, earning lower-level salaries, while millennials have had some time to recover from the financial setbacks of the past. However, the fact that such a vast majority of older young adults still require monetary assistance indicates the deep impact of the economic challenges they have faced.

**Challenges in Building Wealth**

Even when millennials have managed to build wealth, they continue to face difficulties. Many millennials who are finally able to afford a home find themselves in a highly competitive housing market, often losing out in bidding wars with baby boomers. This has led to a widespread sentiment that the economy is impeding their ability to achieve financial independence.

**Shame and Financial Assistance**

Despite their reliance on parents for money, young adults feel ashamed about needing financial assistance. The survey revealed that two-thirds of respondents experienced feelings of shame. Millennials, in particular, expressed higher levels of shame at 70%, compared to 62% of Gen Zers. This shame may stem from the commonly held belief that young adults are irresponsible spenders and refuse to grow up. This narrative, perpetuated by figures like Dave Ramsey, who considers younger generations living with their parents as a “train wreck,” adds to the shame they feel.

**Contributing Factors and Poor Spending Habits**

The Experian report acknowledged that millennials and Gen Zers do exhibit poor spending habits, which may contribute to their reliance on parents for financial support. Over half (57%) of young adults admitted to struggling with self-control when it comes to impulse purchases. Social media also plays a part, as it often pressures individuals to buy things they cannot afford. Additionally, 61% of millennials and Gen Zers expressed a preference for spending money on life experiences rather than saving for retirement.

**Housing Costs and Financial Support**

While small purchases may contribute to poor spending habits, they are unlikely to make a significant dent in the high housing costs that young adults face. Previous research has shown that housing is one of the main areas where financial support from parents is needed. The survey revealed that many millennials and Gen Zers do not believe they will ever be able to afford their ideal future due to financial constraints.

**Parental Assistance and Cost-Cutting Efforts**

Parents have been stepping in to alleviate the financial difficulties faced by their adult children. Some parents cover at least one monthly bill, even if it means dipping into savings or retirement funds. On their part, young adults are actively trying to find ways to cut costs, with 57% considering reducing online entertainment subscriptions.

**A Glimmer of Optimism**

Despite the challenges, financial assistance from parents seems to offer a glimmer of hope for young adults. Some individuals have started feeling more optimistic about their future prospects, possibly due to the support they receive from their parents.