More than Half of Millennials Still Rely on Their Parents for Financial Support

Financial independence may be achievable with a plan. Here are the basics we recommend. 🚀

A new study reveals that the largest generation in the workforce today is nearing or has reached the age when most Americans expect to feel financially independent. Yet more than half still rely on their parents for financial support.

Investment and insurance company Northwestern Mutual commissioned The Harris Poll to survey 4,375 U.S. adults about their finances. The data reveals that “the average age Americans achieved or expect to achieve financial independence is 37.”

Here’s the kicker: Many Millennials are now around that age, yet more than half (53%) still rely on their parents for financial support.

“This is a massive wakeup call for America,” said Jeff Sippel, chief strategy officer at Northwestern Mutual. “The ‘Great Wealth Transfer’ is real, but an inheritance isn’t something most Americans can rely on. Fewer than 1 in 3 Americans plan to leave an inheritance behind, and the average inheritance is below $50,000. True financial independence starts with a comprehensive plan that moves people out of the passenger seat and firmly behind the wheel of their own financial destiny.”

While the findings paint a sobering picture, they also highlight something encouraging: financial independence isn’t an all-or-nothing milestone. It usually happens through consistent habits built over time rather than one major financial breakthrough.

1. Start with a budget

You need a financial roadmap today to plan tomorrow. A realistic view shows where you stand, your income versus your debts, and where you can trim to free up more cash. It’ll also show you if it’s time to increase your income through side hustles or freelance work.You need a financial roadmap today to plan tomorrow. A realistic view shows where you stand, your income versus your debts, and where you can trim to free up more cash. It’ll also show you if it’s time to increase your income through side hustles or freelance work.

Even small changes like canceling unused subscriptions or reducing impulse spending can free up money for bigger financial goals.

2. Pay down debt

Once you understand your financial picture, it’s time to pay down your obligations. For some, it’s best to start with the highest-interest balances, while others prefer tackling the smallest balances first. From a DIY strategy to working with a professional, there are many ways to approach a debt repayment plan.

The important thing is choosing a strategy you can stick with consistently.

3. Evaluate your credit

You’re entitled to free copies of your credit reports through AnnualCreditReport.com, the official website operated by the three major credit bureaus: Experian, Equifax, and TransUnion. The site was created under the Fair and Accurate Credit Transactions Act to give consumers easier access to their credit information.

4. Create an emergency fund

The best way to ensure you won’t fall back into debt is to build a fund for life’s unexpected events: an appliance or car repair, a medical emergency, or potential job or income loss. Even setting aside a small amount each paycheck can build a financial cushion over time.

5. Start investing

You don’t have to gamble your future to start investing. Before investing, make sure you’ve built a comfortable emergency fund. Many banks and credit unions offer high-yield savings or money market accounts that let your money continue earning interest while remaining accessible.

Once you’ve reached that point, you can begin dollar-cost averaging into a low-cost index fund or mutual fund, if it fits your goals and risk tolerance. A trusted financial advisor can help you decide what’s right for you.

Financial independence rarely happens overnight. Whether you’re just starting out or trying to become less reliant on family, taking one step at a time can help move you closer to your long-term goals.

Remember, this is just a simple roadmap. It helps to ask associates at your local credit union or a trusted financial advisor for advice.