Living at Home: A New Normal for Millennials
Last month, the Pew Research Center released a report stating that more 18- to 34-year-olds are living with their parents than in any other living situation. It got us thinking about the important shift in both priorities and the economic situation of many millennials. Our partner packet this month focuses on this phenomenon and provides tips and advice to help this generation plan and save.
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Living and Saving as a Millennial Living with Your Parents
The generation of the internet age is one of the largest and most diverse in the U.S. Although Millennials have been defined by a relationship to technology, the generation has been steadily redefining adulthood. Millennials have adapted and endured in a post-recession economy, their social and global values have inspired change in the labor market, and now one-third of Millennials are living in a parent’s home.
For the first time in the Modern Era, this is the most common living arrangement for 18 to 34-year-olds. This new normal has not come without its challenges. Many are saddled with student loans, consumer debt, and a serious lack of savings – both emergency and retirement. The silver lining? Living at home provides some much desired financial breathing room, just when it’s needed most.
If you’re a Millennial about to move back in with your folks, who has been living at home for a while, or is looking for a launching pad to independence, here are a few tips to help you make the most of your time at home.
1. Befriend your budget.
Keep track of what goes in and what goes out regularly and realistically. You’ll be able to identify spending habits worth adjusting so you can grow your savings where you need it most.
2. Get a handle on your student loans and other high-interest debt.
Not unlike a mortgage, you’re in for the long haul when it comes to student debt. Talk to your lender about your repayment options and adjustments, and make sure you can afford what you’re paying each month. If you have credit card debt, work on paying this debt off pretty quickly, so you will have more money to put towards your other goals.
3. Set pragmatic goals, and plan for them.
How can you best leverage your time at home? Save for a security deposit for your solo space and build an emergency fund to handle life events as they happen. Make compound interest work for you by getting ahead in retirement savings. Need that extra motivation? Make a commitment to yourself to save by taking the America Saves pledge.
4. Ramp up repayment.
Get ahead of interest on your consumer debt (and/or student loans) by breaking up your payments biweekly or adding one additional payment per year.
5. Check in on the health of your credit.
A recent report found that young adults are less likely to have accessed their free credit score than older generations. Knowing more about how credit scores work and having a healthy credit score can put you in a better spot to reach your goals and save you a bundle along the way. Not sure where to start? Try the Credit Score Quiz to boost your credit score knowledge.
Tammy G. Bruzon works for America Saves, managed by the nonprofit Consumer Federation of America (CFA), which seeks to motivate, encourage, and support low- to moderate-income households to save money, reduce debt, and build wealth. Learn more at AmericaSaves.org.
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A good #creditscore saves $ while renting or buying a car. Learn more: creditscorequiz.org #SavingsTipTuesday @ConsumerFed @VantageScore
Tweet this now
Join @AmericaSaves in an hour-long Twitter chat on our packet theme.
Please join us on Monday, July 18 at 2 pm Eastern for an hour-long discussion on saving and living at home as a millennial.
The generation of the internet age is one of the largest and most diverse in the U.S. Although Millennials have been defined by a relationship to technology, the generation has been steadily redefining adulthood. Millennials have adapted and endured in a post-Recession economy, their social and global values have inspired change in the labor market, and now one-third of Millennials is living in a parent’s home.
Topic: A New Normal for Millennials – Living at Home
When: Monday, July 18 at 2 pm Eastern
The #MillennialsAtHome chat will feature these questions for discussion:
- Q1: What are some reasons more young adults are living at home than in any other living situation?
- Q2: What are some advantages to young adults living at home with parents?
- Q3: At what age should young adults start saving for the future and retirement?
- Q4: What are some savings tips for young adults?
- Q5: What are some unexpected expenses for those moving out of their parents' homes?
- Q6: What are some ways for millennials to plan for their financial future?
- Q7: What are some ways to build wealth if you’re not a homeowner?
- Q8: In what ways are millennials better off financially than other generations?
- Q9: Do you have any tips or advice for young adults paying student loans?
- Q10: What do you know about money now that you wish you knew as a young adult?
Share the following resources with your audience and with partnering organizations.
From America Saves
- Financial Strategies by Generation (for Young, Middle Aged, and Older Adults)
- How to save money by ditching your car
- Millennials Face Financial Strain
- More millennials are living at home
- Retirement #LifeHacks for Millennials
- There’s Always Money in the Banana Stand, Right?
- Saving Early: Key to Successful Future
- Starting and Continuing a Personal Finance Journey
Resources + Research
Other Resources + Research
- 6th Annual Credit Score Survey Reveals Large Majority Know Credit Score Basics But Don’t Understand Important Details, Consumer Federation of America
- 15 Economic Facts About Millennials, The Council of Economic Advisors, The White House
- Comparing Millennials to Other Generations, Pew Social Trends
- For First Time in Modern Era, Living With Parents Edges Out Other Living Arrangements for 18- to 34-Year-Olds, Pew Research Center
- The auto savings generation: Steering millennials to better retirement outcomes, Vanguard Research
- The Millennial Generation Research Review, U.S. Chamber of Commerce Foundation
Millennials + Savings in the News
- Are Millennials the Renter Generation? U.S. News & World Report
- Guess What? Millennials Want A Lot Of The Same Things As Their Parents, Forbes
- Here’s Why Millennials Are Money-Saving Champs, The Fiscal Times
- Millennials Are Outpacing Everyone in Retirement Savings, MONEY
- Student Debt Keeps Millennials' Retirement Savings Grounded, Study Says, Financial Advisor Magazine
- When it comes to saving money, millennials are killing it, Bankrate.com