Living in Mom’s Basement — Financial Best Practice?

Generational Boomerang

Think of moving back in with your parents — and then think of how much money it would save you.

For today’s young adults, moving home is just sound financial planning. Almost half of people aged 18 to 29 live with their parents or grandparents, according to a survey conducted for Bloomberg. And there’s no shame in the game, many laud it as a way to minimize bills, save cash, and get ahead financially.

A Difficult Economy

It’s not easy being a young adult in the post-pandemic economy, which this year has been marked by company layoffs, high interest rates and high inflation. Along with student loans and years spent under varying lockdown regimes, Gen Z has a lot on their plate. Life is expensive, and the job market, while historically tight, isn’t the easiest place to navigate either.

These factors have made it difficult for an entire generation to reach traditional financial milestones.

Dream Chasing

For the younger generation, the American Dream is starting to sound more like a pipe dream.

Roughly 1 in 4 Gen Zers don’t expect to ever retire, and only 41% expect to buy a house, according to a McKinsey study published last year. This can create the sense that pursuing financial goals is ultimately meaningless, leading to an increased focus on lifestyle spending over long-term saving.

That said, younger adults are in the prime age to lay a strong foundation for their financial goals, including retirement savings. As inflation cools and the pandemic recedes into the rearview, financial independence may not be as far away as it seems.

Read more reporting here .

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23092201