Generations Z and Millennials: the influence of the economy on family dependence

Unlike Peter Pan, the Millennials and Generation Z they want to grow up and become adults. However, today's high cost of living has turned these young generations of "lost boys" into "adults". lost”, as many of them claim that the high cost of living prevents them from achieving financial independence desired.

Despite the long-standing narrative that parental addiction is due to irresponsible spending on snacks and travel, research from the experian revealed that most of these generations (68%) attribute the difficulty in achieving independence financial situation to the current economic situation, affecting their ability to become financially healthy adults. independent.

These younger generations are facing significant challenges in their quest to build wealth and facing the same expenses that their parents could afford due to the economic adversities that they were presented.

Millennials faced the hard fallout of the Great Recession during their graduation, while Generation Z went through its own version of a difficult economic situation: the challenges caused by the coronavirus.

Both generations are grappling with significant student debt, facing a challenging housing market. as potential first-time homebuyers and experiencing for the first time in their lives a real inflation.

Millennials and Gen Z face financial hardship

According to the research of experian, more than 70% of Gen Z and Millennials said that recent economic news such as mentions to a possible recession, and the occurrence of layoffs led them to focus more on their health financial.

Most of these young people expressed the desire to improve their knowledge of personal finances, believing that this would bring a greater sense of security in relation to their financial situation.

The current generation of young adults is much more likely to live with their parents compared to 50 years ago, a trend that has intensified over the last few decades. During the pandemic, many young adults have returned to their parents' homes due to the unprecedented situation, which has not been seen since the Great Depression.

Although many subsequently moved, the trend towards living with parents did not stop with the end of the lockdown period. Given the financial instability facing this generation, nearly one in eight millennials has chosen to move back in with their parents in 2022.

Other young people are receiving direct financial support from their parents. According to a separate survey, 35% of millennials say their parents pay at least one of their monthly bills.

Furthermore, some parents are even using resources from their retirement funds to support their children. This financial assistance, whether through inheritance or advances on large investments, such as cars or houses, has given millennials a sense of improvement in their conditions financial.

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