It’s become pretty common knowledge that millennials still live at home with their parents. In fact, they are the largest generation to do so; but their reasoning might not be as entitled as you think.
The PEW Research Center has reported that more young adults are living with their parents than with their spouses and the U.S. Census Bureau reported that millennials are hitting traditional milestones later in life. Has anyone stopped to consider that maybe these young people are saving their pennies and planning ahead?
Most millennials got to see the 2008 collapse and witness the effect it had on their parents. They’re dealing with lower wages, higher housing prices and massive amounts of debt. When faced with the decision to spend or save, living with their parents for a few years may be a wise decision.
Choosing to Live at Home
They found at around one in seven millennials lives back home with their parents, many returning after college or time out on their own. Fairly equal numbers of men and women lived at home with their parents with slightly more men choosing to move back home.
Saving for The Future
Most of the people living at home do not fit the burnout or “lazy millennial” stereotype. They are saving for their futures: paying down their student debt, accumulating an emergency savings fund, or saving up for a down payment on their own home.
The generosity of their parents is making up for the unfair monetary hand they were dealt and it’s putting millennials in a place to retire at a reasonable age. A Bank of America survey found that one in six millennials have saved over $100,000 toward retirement. While people argue that this number may be a bit high, it still goes to show that millennials are thinking about the future.
Millennials will be the ones laughing all the way to the bank because they are swallowing their pride, taking control of their finances and planning ahead. Since they are set to be the largest group of homebuyers in 2018, I’d say their decisions to live at home are beginning to pay off!