Only 24% of 18-22 year olds are financially independent of parents, using the definition of income at least 150% of poverty level for a one person household ($19,128). This is down from 1980, when it was 32%.
This is in contrast to 64% of all adults saying that people should be financially independent of parents by age 22.
But many 18-22 yos are in college or other type of training and some in HS? More telling is that the report states that 59% of 18-29 yos say parents have helped out in the last year. I think the report would be more interesting and informative if it looked at 18-23 and 24-29 as two different groups.
Yeah, really. I think that people should be financially independent of their parents when they graduate from college, which seems usually to be while they are 22 rather than before that. Both of my kids were financially independent (if barely so) by their 22-1/2 birthday. And I was proud of them for that. But if their path were typical, only about 10% of 18-22 year-olds would be financially independent (i.e., half of 22 year-olds, and 0% of 18, 19, 20, and 21 year-olds) . That it’s 24% certainly reflects the fact that many 18-21 year-olds are not involved in higher education at all, or are only marginally involved, and are successfully working to support themselves, or are in the military.
"About six-in-ten parents with children ages 18 to 29 (59%) say they have given their kids at least some financial help in the past year. "
My kids are financially independent as of college graduation but I’d still answer yes to this question. They do pay their own rent and bills but we help them here and there anyway because we can afford to do so and it is extra stuff - some Roth funding, paying for trips, and a few other items I consider gifts. They don’t ask for it nor do they need it to survive and would be fine on their own. I consider it a small sharing of wealth as opposed to more in a later inheritance. I don’t think that is unusual. My folks helped my spouse and I out in many ways when we were that age even though we were also self supporting.
And, yeah, not surprised that most 18-22 year olds are being supported by family. Most are still in school.
This seems pretty silly. Many 18 year olds are still in high school! And a good percentage of 18-22 year olds are still in college. I don’t know anyone who would say college students should be financially independent of their parents. My guess is that those adults answering the question weren’t really thinking of school. And that few of them actually know truly financially independent 18-22 year olds. There are a higher percentage of people who go to college than in 1980.
My kids were financially independent at age 22.5 but they get annual gifts from us as part of our estate planning. They save this money though.
And in other news, water is wet.
@Nrdsb4 Please cite the source of your claim.
One of mine was completely off the payroll at age 21. The other is living overseas where the COL is low enough that he can be 90% self-supporting. We are paying for his prescriptions, as some can’t be obtained in his country, and send him some funds occasionally – but the total is far less than what it cost us to have him live at home.
Would gifts count as financial help, as people well over thirty can still get substantial gifts from parents, but are financially independent. The line between gift and help may be fuzzy. For example, do cell phones count? Seems to me that many parents still pay for their independent adult kids cell phones because the family plan means the extra phone is very cheap or free. Is that financial support? Paying for a wedding? If that counted, even though I was completely financially independent by the time I got married, my parents helped pay for it.
In the age of cellphones where it costs nothing to keep your post grad kid on your plan, and where some entry level jobs don’t provide health insurance but you can keep your kid on your family plan until 26- it would financially stupid NOT to continue helping your kid in this way.
A kid should pay thousands for a Blue Cross plan when it costs 1/10th of that to stay on Mom’s plan for work? A kid should buy his own data plan when he’d be free on dad’s contract?
My kids have stayed on our phone plan, but they pay us for their lines.
Of course not, but it likely would “count” as financial support in the context of the article. If you are saying that the kid is still launched, even if there are some financial ties, I agree.
blossom - that’s my 23 YO kid exactly. he doesn’t pay for insurance at all -is on our BC plan; he even works at BC! Our plan is much better. no reason why he’d pay for his. And we pay for his cell; 5th person free on our plan. Why not ? But he is financially independent otherwise - at age 23. wasn’t at 22. And got a Bonus today at work!
As long as they’re in school and working towards their future career, I am perfectly fine with supporting them financially. It’s what I’ve planned on doing since they were babies. I also see no reason for older son to buy his own insurance before age 26. I have to keep family coverage because of his brother until then anyhow. The younger one might get shoved out of the insurance nest a little earlier though as I’ll most likely
retire before he’s 26.
About 1/3 of of high school graduates don’t go to college, and about 1/6 of students don’t even graduate from high school. So many are not in college, or on their parents’ insurance, because their parents don’t have insurance. But those that don’t graduate or don’t go to college are often still dependent on their parents to some degree. Others have no support from their parents, maybe have a grandparent or aunt who helps out.
In many cultures living at home as a young adult is considered normal and desirable. They move to their own place until marriage, if then.
So much depends on options available to the kid/family. Our S stayed on our plan until aging out at 26. Our insurer agreed it was prudent for him to do so. Why should he pay for a plan when there was no cost to keep him on our excellent one?
We also gave him generous gifts for his Roth IRA and solo 401k. He certainly didn’t NEED our help but we were happy to gift him and he was grateful to receive it.
My nieces and nephews were all in college, as were my kids during these ages, as were me and my sibs. We were all dependent but all became independent after graduating formal schooling unless there was a serious chronic health issue.
2 out of 3 of ours were pretty much financially independent by 23 I’d say. Both got jobs right out of college and we kept a few things going for them (car insurance, a little help with initial rent costs) and a year or so out they were basically independent.
Like doschicos said, we did and continue to gift them some perks now and then just because we like to. I consider these gifts not “support”.
Our third went straight from college graduation to grad school within a month. She is in a three year grad program which currently isn’t giving her much option to work besides a few babysitting jobs (thought thankfully, good ones) so we have an agreement to continue to pay her living expenses (rent, utilities, food) and car insurance and phone. I hope we can continue to do this through her three year program.
Both of our kids had professional jobs after graduation, but lived in very expensive cities (NYC and London). We did/do provide some help with rent. We don’t have an issue with this.
Some of this depends on your definition of financially independent. Are you financially independent if you live at home, are still on your parent’s insurance, get help with a down-payment, get help with rent, or get Roth/401(k) funding?