By Claire Ballentine
Millennials and members of Gen Z are having a hard time becoming financially independent.
Only 28% of millennials (ages 27 to 42) and members of Gen Z (ages 18 to 26) answered “not at all” when asked if they still relied on their parents for financial support, according to a recent study from credit agency Experian. And more than half said they were “somewhat or very” dependent on money from their families.
At the same time, two-thirds feel ashamed when they have to ask their parents for financial assistance, with 70% of millennials feeling this way, according to the survey.
Skyrocketing housing costs, student loan debt and a shaky economy are making it difficult for young Americans to find their footing. Financial milestones like moving out and buying a home look increasingly out of reach for many, especially as inflation pushes up the prices for everyday necessities.
Developing healthy spending habits is a struggle for some, the Experian survey found. About 57% of millennials and Gen Z in the study said that they have a hard time saying no to impulse purchases. And more than 60% said they would prefer to spend money on life experiences now than save for retirement.
Some of these young adults also believe their parents haven’t been good roles models for making smart financial decisions. More than 40% said their parents have bad spending habits or did in the past. About a third said their parents didn’t teach them about personal finances and 16% reported that their parents avoided talking about money altogether.
Do you think your pay will grow faster than inflation this year? Share your views in the MLIV Pulse survey.
More stories like this are available on bloomberg.com.