Millennials are relying on parents to pay the bills

Thirty-five percent of millennials say their parents pay at least one bill each month, according to a OnePoll survey conducted for Chartway Credit Union of 2,000 Americans between December and January. Housing is one of the bigger expenses: Almost a quarter of millennials say their parents cover the rent.

No surprise there. Rent reached a record high in the main cities, which usually attract young professionals, in the summer. While rents have begun to decline slowly, they are still more expensive than a year ago. The number of people renting apartments has reached its highest level in half a century—even millionaire millenials are renting (although some prefer to direct their money elsewhere).

Millennials also report that their parents cover the cost of groceries, utility bills, car insurance, car payments, and streaming services. Perhaps some of these parents are holding onto the financial reigns for too long—but the situation also signals the end of millennials’ long-held economic stick.

He graduated to the Great Recession and its aftermath only to be hit by the pandemic when he finally got his financial footing and accelerated his career—all while saddled with massive student debt. The rising cost of living has caused millennials to delay milestones like starting a family or buying a home, and facing 40-year high inflation for the first time in their lives isn’t helping.

For most parents with babies, home ownership and wealth building is a different story. The American Dream is a more affordable proposition for the older generation, who are building greater fortunes and achieving financial independence at an earlier age than their children. Research has found the average wealth gap between those 60 and older and 40 and younger has nearly doubled since the 1960s and 1970s. While boomers have had more time to accumulate wealth, the wealth of those aged 20 to 39 has declined.

“It’s almost like we don’t want millennials to get a piece of the American Dream,” said André Perry, a senior fellow at the Brookings Institution. fortune.

Receiving parental financial assistance—or even staying at home, as millennials still do—can help this generation save and manage their finances.

Many millennials polled seem to want to pick up the bill themselves, or at least 72% plan to do so within the next two years. Thirty-one percent say that sticking to some monthly plan helps their parents try to save. But 30% admitted they would take all the financial help they could get until their parents cut it.

Personal finance guru Dave Ramsey says “Momma” may not be able to protect young adults who live at home – but they may have more money in their wallets to help their children who are struggling to afford rent.