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.
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.
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