Young people from Generations Y and Z are having trouble becoming financially independent.
A recent study from the credit agency Experian found that only 28% of millennials (ages 27 to 42) and Gen Z (ages 18 to 26) said "not at all" when asked if they still got money from their parents. And more than half of them said they were "somewhat or very" reliant upon money from their families, Bloomberg has reported.
At the same time, the survey found that two-thirds of people feel ashamed when they have to ask their parents for money, and 70% of millennials feel this way.
Young Americans are having a hard time getting their feet on the ground because of rising living costs, student loan debt, and a shaky economy. Many people are finding it harder and harder to reach financial goals like moving out and getting a home. This is especially true as inflation drives up the prices of everyday commodities.
Some people find it hard to get into good financial habits, the Experian study showed. About 57% of the millennials and Gen Z individuals who took part in the study said it is hard for them to say no to impulsive purchases. More than 60% said they would rather spend money on things they want to do now than save it for retirement.
Some of these young adults also think that their parents haven't shown them how to make good decisions about finances. More than 40% said that their parents have or used to have bad spending habits. About a third of people said their parents didn't teach them anything about money, and 16% said their parents never talked to them about money at all.
80% of Gen Zers and millennials think that having a credit history is important if they want to be less financially dependent on their parents, and the study from Experian has shown that almost as many are actively working to improve their credit scores.
"Credit can be a financial tool to help us achieve many of the things we want in life, including financial independence from our parents," said Christina Roman, consumer education and advocacy manager at Experian. "We have resources available to help consumers lead more financially empowered lives. Our goal is to connect consumers with tools and education to help bring financial power to all."