Student Debt Removes Embarrassment for Young Americans Moving Back Home... For Years
June 06 2019 - 8:30AM
Business Wire
Living at home with parents doesn’t become
embarrassing until age 28, survey for TD Ameritrade reveals
As student debt1 and housing prices continue to rise2, more and
more young adults are looking to save money by living with their
parents longer. Luckily for them, according to a new survey
conducted by The Harris Poll on behalf of TD Ameritrade, both young
adults and parents agree that living with one’s parents doesn’t
become embarrassing until age 28, on average.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20190606005051/en/
Young Americans Return to the Nest
(Graphic: TD Ameritrade)
“Shouldering more than $1.5 trillion in U.S. student loan debt1,
it’s no surprise that young adults are looking for ways to save
money as they focus on building a career foundation,” said
Christine Russell, senior manager of retirement and annuities at TD
Ameritrade. “You don’t become an adult the day you graduate from
college – it’s a process that takes time. And while there’s nothing
wrong with getting support from your parents, it’s important for
both parties to set rules and communicate during that process.”
Student debt is delaying adult milestonesStudent debt has
caused nearly one in three young millennials to delay moving out of
their parents’ home, along with delaying other milestones:
- Buying a home: 47%
- Saving for retirement: 40%
- Moving out of parent(s)’ home: 31%
- Getting married/civil ceremony:
21%
- Having children: 21%
For those moving back in with their parents, the stint will
likely be rent-free and not a quick stop
- Half (50%) of young millennials who are
currently enrolled in college or who intend to go to college plan
to move back home after, and 82% of parents say they would welcome
their children moving back home after college.
- When moving back in with their parents,
it’s not just a short-term stop: one in three (31%) young
millennials move back for two years or more, with more than half
(56%) saying their return home will last at least a year or longer.
- For many, this time will be rent-free,
with 38% of young millennials expecting to pay rent while living at
home.
- For those young millennials who do
expect to pay rent while living at home, the average is $486 a
month.
Expectations for an empty nest
- The average age that parent respondents
expect to become an empty nester is 49, and most are looking
forward to the experience: 60% of parents agreed that being an
empty nester will be more exciting than depressing.
- There’s a significant difference
between genders when it comes to being excited about children
moving out (70% of men, versus 53% of women).
- Empty nesters plan to prioritize travel
(65%), new passions/hobbies (40%) and retirement savings (40%) when
their children move out.
Today’s young adults plan to pay it forward
- While some parents may need to help
support their children for longer than previous generations, the
vast majority (81%) of Gen Z and young millennials expect to help
support their parent(s) financially and/or provide housing for them
in their older age.
“Young adults moving back home for more than two years can
definitely have an impact on parents’ finances,” said Russell. “And
while it’s heartening to see that these young adults are willing to
take care of their parents in their time of need, the parents
should take a close look at how their adult child moving home will
affect their finances and retirement, and plan accordingly.”
Russell highlights some advice for “boomerang generation”
students and their parents:
- For students, try to think of the time
you live with your parents as your “gap year” – do what you can to
contribute to rent and bills (parents can use that money to
contribute to retirement), get a head start on paying off your
student loans, and start building your credit.
- Parents of children moving back home
should be financially transparent and involve them in conversations
about financial planning. Talk to them about your own journey to
financial independence, discuss your financial successes and your
mistakes, and include them in budget conversations, so they’re
aware of the day-to-day expenses of running a household.
About TD Ameritrade Holding CorporationTD Ameritrade
provides investing services and education to
more than 11 million client accounts totaling approximately $1.3
trillion in assets, and custodial services to more than
7,000 registered investment advisors. We are a leader in U.S.
retail trading, executing an average of approximately 850,000
trades per day for our clients, more than a quarter of which come
from mobile devices. We have a proud history of innovation,
dating back to our start in 1975, and today our team of
10,000-strong is committed to carrying it forward. Together, we are
leveraging the latest in cutting edge technologies and one-on-one
client care to transform lives, and investing, for the better.
Learn more by visiting TD Ameritrade’s
newsroom at www.amtd.com, or read our stories
at Fresh Accounts.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org) / SIPC (www.SIPC.org)
Source: TD Ameritrade Holding Corporation
About The Harris PollThe Harris Poll is one of the
longest-running surveys in the U.S., tracking public opinion,
motivations and social sentiment since 1963. It is now part of
Harris Insights & Analytics, a global consulting and market
research firm that strives to reveal the authentic values of modern
society to inspire leaders to create a better tomorrow. We work
with clients in three primary areas; building twenty-first-century
corporate reputation, crafting brand strategy and performance
tracking, and earning organic media through public relations
research. Our mission is to provide insights and advisory to help
leaders make the best decisions possible. TD Ameritrade is separate
from and not affiliated with the Harris Poll, and is not
responsible for their services or policies.
Survey MethodologyThis survey was conducted online within
the United States by The Harris Poll on behalf of TD Ameritrade
from February 28 to March 14, 2019, among 3,054 U.S. adults and
teens ages 15 and older. Key populations include: Gen Zs (n=1027,
ages 15 to 21), young millennials (n=1026, ages 22 to 28) and
parents (n=1001, ages 30 to 60). The parents had more than $25,000
in investable assets.
1
https://www.federalreserve.gov/releases/g19/current/default.htm2
https://www.reuters.com/article/us-usa-property-poll/u-s-house-prices-to-rise-at-twice-the-speed-of-inflation-and-pay-reuters-poll-idUSKCN1J20G3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190606005051/en/
For Media:Becky Niiya, 402-574-6652Director, Corporate
Communicationsrebecca.niiya@tdameritrade.com@TDAmeritradePR
For Investors:Jeff Goeser, 402-597-8464Managing Director,
Investor Relationsjeffrey.goeser@tdameritrade.com
TD Ameritrade (NASDAQ:AMTD)
Historical Stock Chart
From Aug 2024 to Sep 2024
TD Ameritrade (NASDAQ:AMTD)
Historical Stock Chart
From Sep 2023 to Sep 2024