- Pew Research study finds young adults in the US facing delayed milestones and increased debt compared to their parents.
- Majority of young adults still rely on parents for financial support, with only 45% considering themselves financially independent.
- More young adults living with parents and delaying traditional milestones like marriage and having children due to financial and cultural factors.
Additional Coverage:
A new report from the Pew Research Center has highlighted the challenges facing young adults in the United States. The study found that young adults are reaching key milestones later in life and taking on more debt than their parents did. The majority of young adults still depend on their parents to some extent for financial support, with only 45% of 18-34 year olds describing themselves as financially independent. Even among 30-34 year olds, almost 1 in 5 rely on their parents for assistance with household bills. Despite these challenges, many young adults expressed optimism about their future financial independence.
The report also revealed that young adults today are more likely to have a college education than their parents. However, with a college degree comes more student loan debt. 43% of people between 25-29 have student debt, compared to 28% in 1993. Young adults who own homes also carry more mortgage debt than their parents did. Homeowners ages 29-34 have an average of $190,000 in mortgage debt today, compared to $120,000 in 1993 when adjusted for inflation.
The study also found that more young adults are living with their parents compared to previous generations. About 57% of 18-24 year olds are currently living at home, a slight increase from 53% in 1993. This trend may be attributed to the rising cost of housing and rent, as well as changing social attitudes towards living with parents.
Additionally, the report revealed that young adults are delaying traditional milestones such as marriage and having children. The percentage of 30-34 year olds who are married has dropped from 63% in 1993 to 51% today, while the percentage of 30-34 year olds with at least one child has decreased from 60% in 1993 to 27% today. Financial considerations, such as the high cost of raising children, as well as cultural shifts, may be contributing factors to these delays.
Overall, the report paints a picture of a generation struggling with debt and facing unique challenges in achieving financial independence. However, despite these difficulties, many young adults remain hopeful about their future prospects. The findings of the study are based on surveys of both parents with adult children and young adults themselves.