Debt, job market keep Gen Y financially dependent on parents

May 29, 2014

2 new reports from Canada and the US suggest that financial self-sufficiency continues to elude many college and university graduates. An article in the Globe and Mail says that 43% of survey participants aged 30–33 had not yet achieved financial independence from their parents, in spite of expecting to do so by age 27. 1 in 5 of respondents in the same age demographic lived with their parents, and 17% said they were getting help from parents to pay their bills. The data suggest that continued dependency may be in part due to student debt, as well as difficulty finding a full-time, career-oriented job. US data, meanwhile, also found that many young people are not financially self-sufficient. A longitudinal study that followed 2000 University of Arizona students from its 2007–2008 freshman cohort found that only half are working full-time, and about as many continue to rely on their parents for financial assistance. This report also found that debt contributed to lower well-being financially, psychologically, physically, and in terms of life satisfaction. Globe and Mail | The Chronicle of Higher Education | Full uArizona Report