A recent study by the Pew Research Center shows that less than half (45%) of 18 to 34-year-olds see themselves as financially independent from their parents. This is because of the current economy.
About one-third of young adults aged 18 to 34 live with at least one parent. For 18 to 24-year-olds, the percentage is even higher at 57%. The previous idea of being independent at 18 has changed due to the new economic situation.
Pew researchers mentioned in their analysis that young adults are getting married and having kids later in life, even though they have more education, jobs, and higher wages than their parents' generation.
While there is still a social stigma around adult children living with their parents, parents and their Gen Z children are finding ways to adapt to this new family dynamic, which has been beneficial for both parties.
Earning Money as Adult Children
It's commonly believed that adult children living at home take advantage of not paying rent, utilities, and doing minimal household chores.
However, Pew researchers found that 72% of young adults financially help the household in some way. 65% assist with grocery or utility bills, 46% help with rent or mortgage, and 64% say this arrangement has significantly improved their financial situation.
Parents Benefit from Delayed Empty Nest
Unlike previous generations, today's parents are more relaxed about their children leaving home. They understand the economic challenges and empathize with their adult children.
45% of parents see the living arrangements with their adult children as a positive step, and another 29% see it as at least somewhat positive. Both parents and adult children make sacrifices to accommodate each other, but the family dynamic remains strong and functional.
Parents Still Provide Financial Support
Even if adult children no longer live at home, many parents still feel the need to provide financial support. 59% of parents in the survey helped their adult child in the previous year, and 44% of adult children received such help.
68% of those receiving help were 18 to 24 years old, but 30% of adult children between 30 and 34 also received financial assistance from at least one parent.
The survey detailed the financial support further, showing that 28% went to household expenses, 25% went to cellphone bills and streaming services, 17% went to rent, 15% went to medical expenses, and 11% went to educational costs.
Only 15% of parents see these financial contributions as bad, 27% see them as good, and 55% think the effect is small. Parents with lower or fixed incomes were more likely to say the loans had a negative effect on their finances, with 36% admitting the loans affected their financial health in some way.
Some Adult Children Change the Financial Polarity
While the financial relationship between aging parents and their stay-at-home adult children is often seen as one-way, the new cohabitation model is a bit different. 33% of adult children surveyed say they helped their parents financially in the past year, while 14% of parents admit receiving such help. 38% of parents say their children contributed to a special circumstance, while 31% say they got money for regular expenses or both.
“Young adults with lower incomes (43%) are more likely than those with middle (28%) or upper incomes (19%) to say they helped their parents financially. Similarly, parents with lower incomes are the most likely to say they received financial help from their young adult children (29%), compared with 9% of those with middle incomes and 2% of parents with upper incomes,” according to the Pew report.
The good news for aging parents and their young adult children is that the desire for independent living is still a strong motivation for younger generations. The nest may not empty out as planned, but the extra family time should still be mutually beneficial.
