A recent Pew Research Center study shows that amid economic uncertainty and few job prospects, most young adults have actually moved back in with their parents. In fact, for the first time ever, the majority of 18- to 34-year-olds now live at home with their mom and dad.
As of July 2020, 52 percent of millennials were living in their parents' home, according to the Pew analysis of Census Bureau data. That percentage surpasses the previous high hit in 1940, when 48 percent of young adults lived with their parents. In 2020, the number of young adults living with their parents jumped across the board for men and women, all racial and ethnic groups, and in every geographical region.
If you're wondering why this is, there are many reasons. With many college campuses closed, undergraduates are forced to move back home and study remotely or take a gap year. Those who recently earned their diploma face the worst job market in modern history and have more student debt than ever before -- putting a huge strain on their finances. Also, those young adults who are already in the workforce are more likely to lose their jobs or take a pay cut. In less than six months, the share of 16- to 24-year-olds who are neither enrolled in school nor employed more than doubled due to the Coronavirus and the economic downturn since March 2020.
Even before the pandemic, young adults were increasingly dependent on their parents. The study found that about 60 percent of parents with children between the ages of 18 and 29 had given their kids at least some financial help in the past year -- primarily for recurring expenses such as tuition, rent, groceries or bills. However, for parents the task of supporting grown children can be a substantial drain at a time when their own financial security can be at risk. Medical coverage, auto insurance, groceries and other expenses related to having young adults at home can definitely derail retirement plans.
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