October 25, 2019

Financial independence is one of the many markers used to designate the crossover from childhood into young adulthood, and it’s a milestone most Americans (64%) think young adults should reach by the time they are 22 years old, according to a new Pew Research Center study. But that’s not the reality for most young adults who’ve reached this age.

 

Most say young adults should be financially independent by age 22, but reality differs for many The share of young adults who could be considered “financially independent” from their parents by their early 20s – an assessment based on their annual income – has gone down somewhat in recent decades. A new Pew Research Center analysis of Census Bureau data finds that, in 2018, 24% of young adults were financially independent by age 22 or younger, compared with 32% in 1980.

Looking more broadly at young adults ages 18 to 29, the share who are financially independent has been largely stable in recent decades. Overall, young men are more likely than young women to be financially independent, but this gender gap has diminished significantly.

The new survey findings underscore the extent to which many young adults are financially reliant on their parents. Some 45% of adults ages 18 to 29 (with at least one living parent) say they have received a lot of or some financial help from their parents in the past 12 months.1 According to parents of young adults, those shares may be even higher. 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. The study is based on two nationally representative surveys. The first survey of 9,834 adults was conducted online from June 25 to July 8, 2019, using Pew Research Center’s American Trends Panel. The second survey of 1,015 adults was conducted on the telephone June 25-30, 2019.

To download report CLICK HERE.

 

 

 

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