6/17/2013 5:45 PM ET|
Milking parents for more money
Are your offspring staying in your house -- and living off your dime -- well into their 20s? A recent survey suggests that's part of their plan.
If Junior has his way, there's a good chance he's planning to be on your dime until his mid-20s, while simultaneously believing his financial future is brighter than yours, new research shows.
About 29% of those surveyed expect to be 25 years or older before they are financially independent without their parents' help, according to a survey from Allstate Foundation and Junior Achievement USA.
That's up from 27% last year, and it's a large increase from the 16% who felt the same way just two years ago.
Rob Callender, the director of insights for youth research firm Tru, attributed this planned reliance on parents to the high jobless rate among young people. That figure stands at 25.1% for teens ages 16 to 19, according to government data.
As many middle-aged workers have taken jobs they're overqualified for, they've displaced younger people on the totem pole, Callender said. "It's like a reverse domino effect where it's displacing young people who may have the education but not the experience," he added.
Ironically, more teens are more optimistic about their future, despite believing that they will rely on their parents into their 20s and possibly beyond, according to several data points.
While teens expect to rely on their parents more, members of the younger generation also think that financially they will be as well off as or better off than their parents, with nearly 65% expressing this opinion, the Allstate/Junior Achievement survey found. That's up from up from 56% last year.
Teens were even more optimistic in Tru's survey, with 90% believing they'll be at least as well off as their parents.
"Even in the middle of the recession, they were optimistic," said Barbara E. Ray, a co-author of "Not Quite Adults: Why 20-Somethings Are Choosing a Slower Path to Adulthood, and Why It's Good for Everyone."
Ray added, "They know the trends, they know they're part of a larger trend, but they think it's going to be OK for them. It's kind of classic American optimism, but maybe a little unrealistic."
Stormy ride for young adults
Overall, unemployment data paint a stark picture for young adults as they near the beginning of their careers. Although the overall unemployment rate edged down to 7.6% in May, the jobless rate for those 20 to 24 years old stands at 13.2%.
Faced with high unemployment, it's no surprise that many young adults have set up camp at their parents' homes. This "boomerang" set, which accounts for nearly three out of 10 young adults, has driven the percentage of those returning to their family homes to the highest level since the 1950s, according to a Pew Research Center report from 2012.
Author Ray said such an arrangement can help young adults build more secure futures.
"You can get your ducks in a row basically because you don't have to make decision based solely on money," Ray said. "You can go get that advanced degree maybe or not have to take jobs that might not be the best job to start you on a strong trajectory."
Despite the economic outlook. Ray described the 20-something cohort as "very optimistic."
As increasing numbers of teens rely on their parents, that puts added pressure on the so-called "sandwich generation," the group stuck supporting both their parents and their children at a time when they are trying to prepare financially for their own retirement.
According to a January survey from Pew Research Center, about 15% of middle aged adults reported providing financial support to both an aging parent and a child, with Generation X replacing baby boomers as the group most likely to feel the squeeze.
The Allstate survey also showed a lack of communication between adults and their kids about paying for college. Nearly three out of 10 teens said they had not talked with their parents about saving for higher education. These findings come even as student debt has hit the record $1 trillion mark, as measured by the Consumer Financial Protection Bureau.
But, hey, at least mom and dad will be there to contribute financially later. (Or at least that's what their teens are planning.)
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As an employer, I can see the difference between recent college grads who were raised with a strong work ethic, curiosity, an awareness of the world around them and a sense of responsibility to others and those grads who where not.
When I ask them about where they got the work ethic, they invariably will say that they had chores at home starting young, didn't get to do some of the activities that many of their friends did, and that they probably had less screen time than others their age. Also common is the family eating together on a regular basis.
Not a scientific study, common denominators from my observations.
Teens are optimistic because they don't have a clue yet and they are living on their parents dime
right now-------- So all their disposable income in for fun stuff and they haven't hit the real world yet/////I have 5 employees who are between 18-22 and they live in another world then me when it comes to
I’m 23 y.o. and I can’t imagine still being financially dependent on my parents. I graduated in Dec. 2011 and worked two part time jobs until a year later when I finally landed a full time job in my chosen field. Employers have commented before that I have a good work ethic so I think that’s partly why I beat out other candidates with more experience. In fact, my hiring manager even told me it was my personality and hunger to learn that landed me the job. I wouldn’t have even gotten my foot in the door though if it wasn’t for many internships and a portfolio I built by doing free work/little pay.
My dad is a former Marine and works in diplomatic security so he enjoys dealing out tough love. He was more than fine cutting off his financial support after my graduation and reminding me (as I was working 2 part time jobs) that when he was my age he already had a full time job, wife, kid and was going to school full time. I know I wouldn't be where I am today if it wasn't for my dad being a real father and not just an ATM.
"You can go get that advanced degree"
You better find a way to pay for it, too.
Until parents wise up some adult children will take advantage of them for as long as they can. Parents need to set rules for both allowing their adult children to even set foot in the door and then rules of conduct and respect while there.
1. they have to be employed, even if that means flipping burgers
2. they pay 25% of their take home pay in rent as they get paid
3. they buy their own food and supplies
4. they do an equal share of household chores like cleaning, cooking or yardwork
5. parents set all other rules of conduct such as having friends over, parties, etc.
6. within 30 days, kids have a written plan to move out along with weekly updates and actions taken to be moved out within 6 months
7. maximum length of stay is one year
8. if the kids don't agree to all of these things, say thanks, but no thanks and never let them move into your house in the first place as once they are in, it is hard to get them out
The article talks about youths optimism, I am thinking that it is more like arrogance. I look back at my own youth and my buds at the time and we knew it all, no one could teach us anything more. This attitude didn't change until we all had to pay rent, buy our own food and get transportation.
That is the parents fault, they don't know how to tell their kids that the free ride is over, get out, get a job, if you want to mooch off us, it is not going to happen. Be responsible, your 18, get a life, we had to find out, now you can go find yourself, or drown. Case closed! How else are they going to go out in the world? They never had to, because they are babied to much at home. Get a life, be responsible, what will happen if we no longer are around, you are on your own. Wake up kids!!!
Brian Kohn, that is the most sane thing that I have heard since my mother died, that is the way I was raised.
Never did I think she didn't take care of me, she saved me from myself. I would not have been as successful as I am without that kind of upbringing.
How about having a degree in using your head.
Make sure he gets on with some common sense in it.
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