How old were you when you were truly financially independent?
I was married and we owned our own place at 24. But when we moved from the Townhouse to a house, we received some assistance. We received more assistance when I lost my job shortly after moving into the house. So, I can’t pinpoint the exact moment that I was financially independent from my parent.
The Pew Research center, analyzed Census Bureau data to find that just 24% of young adults could be considered financially independent by 22, compared to 32% in 1980. Financial independence is defined as earning an annual income of at least 150% of the federal poverty level. Pew also found that 45% of adults between the ages of 18 and 29 say they receive financial help from their parents, while 59% of parents say they support their adult children.
The world has changed drastically since I was 24, or 27. I had one son leave and we talked him into returning after a year, because we knew he was struggling financially and that his student loans had yet to kick in. We wanted all of the kids to pay off their student loans at an accelerated rate and move out debt free. I have seen the consequences of those who don’t firsthand.
Long term, it seems to be cheaper to have them in the house longer than have to incur a semi-regular stipend. When #2 was living on his own, I think he dropped 20 pounds and he was not overweight to begin with. He was looking skeletal, and not eating properly.
We believe that with the proper education and financial foundation is the only way to launch your kids in todays society, which will allow them to have happiness and success.