Millennials and Gen Zers tend to think that they’re going to be financially independent by age 22. Parents expect to support adult kids longer than that. However, parents find it embarrassing to support adult kids much more so than the kids themselves do.
When Kids Plan To Be Financially Independent
The Young Money Survey asked,
“At what age did you become, or expect to become, completely financially independent from your parent(s)?”
On average, both young millennials and members of Gen Z said age 22. That’s the age many kids graduate from college, so it makes sense on paper.
That said, there was some wide variation. 42% of Gen Zers and 34% of millennials expect financial independence by the age of 20. On the other end of the spectrum, 9% of Gen Zers and almost twice that many young millennials don’t anticipate financial independence until age 30.
Moreover, 2% of millennials say that even after age 30 they will not be financially independent from their parents. There were no Gen Zers in that category. Is that because they’re a generation that’s better with their money? Alternatively, is it because they’re young enough that age 30 seems impossibly far off?
How Long Parents Expect to Support Adult Kids
Most parents didn’t think that their kids were being realistic with those ages. More than nine out of ten parents surveyed expect to support adult kids to the age of 25.
Parents who have to support adult kids much longer than that are embarrassed by the idea. On average, they say it’s embarrassing to support adult kids past the age of 27. In fact, 60% of parents say it’s embarrassing to support adult kids between the ages of 20-29.
Only 25% of parents say that it’s okay to support kids up to age 29 but that sometime in the next decade, it gets embarrassing. A few parents aren’t embarrassed to support adult kids later in life. 4% said it gets embarrassing between ages 40-49 and 3% said it starts getting embarrassing after age 50.
Kids Aren’t as Embarrassed to Receive Support
Members of both Gen Z and the Millennial generation say, on average, that age 30 is when it starts to get embarrassing to receive financial parental support. However, more than a third don’t find it embarrassing until sometime in their 30s. 8% of young millennials and 9% of Gen Zers say it’s not embarrassing until you’re in your 40s. And 5%+ say it’s not embarrassing to receive financial support from parents even after the age of 50.
Other Survey Findings
So, the younger generations expect to be able to support themselves sooner, even though they aren’t embarrassed if they can’t.
Here are some of the other findings from the Young Money Survey:
- Most of these kids expect to earn as much as, if not more than, their parents.
- About two thirds of them are setting aside savings, but most of them are saving less than $200 per month.
- About 1/3 of millennials and less than 1/4 of Gen Zers have emergency funds set aside.
- Fewer than half of millennials and less than one third of Gen Zers have and follow a budget.
- 2/3 of those surveyed would rather contribute to their own retirement than donate to charity.