If you’ve been completely financially independent🀅 from yourඣ parents since adulthood, you’re firmly in the minority.
Key Takeaways
- Most people have exchanged financial support with their parents in their late teens and early twenties and beyond.
- Many parents and children rely on one another financially as they grapple with high housing costs, student loans, and other financial challenges.
- Only a third of U.S. adults have stayed completely financially independent from their parents through Age 43, a study found.
Only 33.4% of U.S. adults have been completely financially independent from their parents through age 43, according to a recent study examining how parents and their children support one another financially throughout their lives. The rest have🌳 either received financial, housing, or other kinds of support from their parents, or, more rarely, have sent su🎀pport in the other direction, according to the study.
The research sheds light on how young people are navigating the transition to adulthood as rising costs for housing and other bills have made it harder for people to move out on their own. Previous studies have documented how “extended adolescence” is becoming more common, with many people living with their parents longer and receiving more financial help overall.
Bo-Hyeong Jane Lee, a postdoctoral scholar at Duke University, and Anna Manzoni, a sociology professor at North Carolina State University, analyzed data from the National Longitudinal Study of Adolescent to Adult Health. The survey followed more than 20,000 from adolescence through age 43 between 1994 and 2018. They found people fell into six different categories describing the pattern of parent-child supp♐ort, as the chart below shows.
The categories added some nuance to the “extended adolescence” narrative, since in many cases, children were supporting their parents as well.
Complete Independence: People who moved out of their pa꧟rents’ home in their late teens or early twenties, and seldom or never gave or received financial support.
Independent with Transitional Support: Moved away from their parent𓆏s, while receiving some temporary financial sup🦋port from their parents
High to Low Support: Received financial support fro♓m their parents through their mid-twenties, after which it drops off.
Gradual Independence: Received financial support from their parents through their mid-twenties, which drops off gradually. This group was more likely to provide financial sꦺupport to their parents later in life.
Extended Interdependence: People who were likely to live in their parents’ home into their thirties🧸, and were more likely to both give and receive financial support.
Boomerang: People in this group were likely to live independently through age 24, then return to live with their parents through age 32, then move out again.