Source: Fortune
Summary
A new Federal Reserve survey found that 49% of adults ages 18 to 29 live with their parents, and another 47% of adults in that same age group received financial help from someone outside their household to pay an expense. The survey also found that 26% of adults ages 30 to 44 reported receiving financial help from outside their household. Experts say this trend is having a ripple effect on the economy, impacting housing markets, school enrollment, and retirement ages.
Our Reading
The numbers tell one story.
Young adults are struggling to become financially independent, with many relying on their parents for financial support. This trend is not limited to the youngest adults, with 26% of adults ages 30 to 44 also reporting financial help from outside their household. The survey’s findings suggest a broader economic shift, with implications for housing markets, school enrollment, and retirement ages. The trend is also having a disproportionate impact on those without a high school diploma, exacerbating income inequality.
It’s a K-shaped economy, playing out generationally as well as by income.
Author: Evan Null
