Less than half of young adults are financially independent of their parents: Pew analysis

Gen Z'ers were the most likely to financially depend on their parents in some way.

by Alejandra O’Connell-Domenech | Jan. 25, 2024

In this June 15, 2018 file photo, twenty dollar bills are counted in North Andover, Mass. (AP Photo/Elise Amendola, File)

Story at a glance

A new Pew Research Center analysis found that 45 percent of young adults are completely financially independent of their parents.

Adults between the ages of 18 and 24 years old were the most likely to be financially tied to their parents.

Just 67 percent of young adults in their early 30s said they were completely financially independent.

Many parents still haven’t cut the financial cord with their adult children.

A new Pew Research Center analysis found that 55 percent of 18- to 34-year-olds are not completely financially independent of their parents.

This differs by age, with young adults in their 30s the most likely to be completely financially independent of their parents.

Gen Z’ers, the youngest of young adults, are the most likely to be at least partially financially dependent on their parents — 16 percent said they are completely financially independent.

Meanwhile, 44 percent of young adults aged 25 to 29 told Pew they are completely financially independent of their parents.

Most adults in their early 30s — 67 percent — told the think tank they are totally financially independent of their parents, as well.

Out of the young adults still turning to their folks for money, 44 percent said they received financial help from their parents in the past year.

Adults getting help from their parents mostly used the funds to pay household expenses, cellphone bills or subscriptions to streaming services, according to the survey.

Pew also found that more young adult children are living with their parents than in years past, which is also playing a role in their financial independence or lack thereof.

Out of young adults between the ages of 18 to 24, 57 percent live in their parents’ home — an increase of 4 percentage points from 1993.

But most of those children contribute financially to the household. The Pew survey found that 65 percent of young adults living with their parents pay for groceries or utility bills, while 46 percent say they help pay the rent or mortgage.

Pew’s analysis is the result of two surveys conducted in the fall of 2023. The first 3,017-person survey included U.S. adults with at least one adult child between 18 and 34 years old, while the second 1,495-person survey questioned adults ages 18 to 34 with at least one living parent who they keep in contact with. The surveys did not include anyone enrolled in high school.