Most Gen Zers and Millennials Still Rely on Parents for Financial Support and Feel Ashamed Asking for Help
Over half of Gen Zers and millennials1 (54%) consider themselves at least somewhat financially dependent on their parents with 23% stating they're still very dependent on their parents, according to newly released research Experian®. While Gen Z had a higher percentage of financial dependency on their parents (61%), nearly half (47%) of millennials still consider themselves somewhat or very financially dependent on their parents.
According to Experian's research, two-thirds of young consumers feel ashamed when having to ask their parents for financial help ? a sentiment that rings especially true for millennials, with 70% indicating they feel shame when asking for support.
While many are relying on their parents for financial assistance, 27% don't believe their parents are good financial role models for reasons including:
- My parents didn't teach me about personal finances (37%).
- My parents avoided talking about money with me (16%).
- My parents have/had bad spending habits (44%).
Credit key to financial independence
Eighty percent of Gen Zers and millennials believe having an established credit history is key to being less financially dependent on their parents and, according to previously released research from Experian, nearly as many are actively trying 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."
Survey says: spending is a struggle for most
In addition to limited experience with credit, Gen Z and millennial spending habits may be another factor causing them to rely on parents for financial support. More than half (57%) say they have a hard time saying no to themselves when making an impulse purchase for something they want but don't need. This was especially true for millennial males with 62% stating they struggle at least somewhat with impulse purchases.
Similarly, 61% of Gen Zers and millennials said they prefer to spend money on life experiences (like traveling, concerts, etc.) now rather than saving for retirement.
However, many of these young consumers are looking for ways to cut costs, with 57% stating they're considering cutting down on online entertainment subscriptions to save money.
Experian's free tools and resources
Consumers looking to save money, build or improve their credit and be more financially independent are encouraged to take advantage of Experian's free tools and resources, including:
- Reading Experian's savings blog post with nationally recognized consumer finance and budgeting expert Andrea Woroch about how to keep more money in your pocket
- Watching the "In My Bag" Financial Health Video Series featuring actress-singer Coco Jones for savings tips
- Joining Experian's #CreditChat hosted by @Experian on Twitter with financial experts every Wednesday at 3 p.m. Eastern time
- Signing up for Experian Boost®v, a free feature that enables consumers to add positive payment histories for telecom, utility, video streaming services as well as rent directly to their Experian credit file for a chance to potentially improve their FICO® 2 Score3 instantly
- Learning how to build and protect your credit with Experian's Credit Essentials for Everyone flipbook and find additional credit education resources at http://www.experian.com/consumereducation
- Finding additional money-saving resources from Experian by visiting experian.com/savings
For more information on Experian's millennial and Gen Z research, visit: https://www.experian.com/blogs/news/2023/06/27/gen-z-millennials-seeking-financial-independence/.
About Experian
Experian is the world's leading global information services company. During life's big moments ? from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers ? we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.
We have 21,700 people operating across 30 countries and every day we're investing in new technologies, talented people, and innovation to help all our clients maximise every opportunity. With corporate headquarters in Dublin, Ireland, we are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.
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1 For the purposes of this survey, respondents between the ages of 18?26 were classified as from Gen Z and those between the ages of 27?42 were classified as millennials. Experian commissioned Atomik Research to conduct an online survey of 2,008 adults between the ages of 18-42 years old throughout the United States, with even distribution between Generation Z (N=1,005) and millennial (N=1,003) participants.
The margin of error is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between March 31, 2023, and April 4, 2023.
2 FICO is a registered trademark of Fair Isaac Corporation.
3 Credit score is calculated based on FICO® Score 8 model, unless otherwise noted. In addition to the FICO® Score 8, we may offer and provide other base or industry-specific FICO® Scores (such as FICO® Auto Scores and FICO® Bankcard Scores). Your lender or insurer may use a different FICO® Score than FICO® Score 8 or such other base or industry-specific FICO® Score (if available), or another type of credit score altogether. Learn more.
v Results will vary. Not all payments are boost-eligible. Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost. Learn more.
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