A OnePoll survey of 2,000 Americans reveals that nearly one-quarter (24%) of millennials have their parents pay their rent.
Brian T. Schools, President and CEO of Chartway Credit Union, believes this statistic is indicative of the need for financial education.
“It’s noteworthy to see that over three-quarters of those surveyed have been managing their own money for most of their lives,” Schools said. “Still, a third of respondents find it difficult to find helpful resources to manage their finances.”
The survey showed that 35% of adults have at least one bill on their parents’ tab.
The most common expenses covered by their parents are rent (19%), groceries (19%), and utilities (16%).
Interestingly, 31% of millennials said it is cheaper to stay on their parents’ plan and 72% plan to take on these bills themselves within the next two years.
Respondents were asked how they define financial responsibility. Most (65%) consider having a good credit score to be an indicator of financial responsibility, while others weighed lack of debt (64%) and the amount they have in their savings (60%).
On average, respondents have six different bills and expenses a month. These include utilities (56%), food (66%), auto insurance (48%), internet (46%), and rent (43%) or a mortgage (40%).
The survey also revealed that almost three-quarters of respondents opened their first bank account by their 25th birthday, and 21% opened one before they turned 18.
Furthermore, 30% of respondents started having their own money to spend by the time they were 15.
This money was earned through an allowance from their parents (58%) and odd jobs around the neighborhood (56%).
However, today, half of respondents struggle to limit unnecessary spending and 45% struggle to budget for unexpected expenses.
Additionally, 40% struggle to remember to pay bills on time.
“Conflicting data such as this tells us that a lot more adults could benefit from some form of financial education,” Schools commented, “whether it’s provided in schools, online, or by their financial institutions.”
The random double-opt-in survey of the general population was commissioned by Chartway Credit Union between Dec 21 and Jan 3, 2023 and was conducted by market research company OnePoll.