Young consumers may be putting off moving into a rental apartment or taking out a mortgage for a home, and instead choosing other options. This could be for a number of reasons, including trying to save money, better set up a financial strategy or even look for new employment.
More young people are living at home now than five years ago, according to a report from Pew Research Center, citing a report from the U.S. Census Bureau. Last year, approximately 36 percent of those between the ages of 18 and 31 were living with parents. This factored to approximately 21.6 million people from the Millennial generation
That level is higher than the 32 percent that stayed at home in 2007, when 18.5 million people were doing this, the report explained. In 2009, 34 percent of the age group was in this position.
Overall, more than half of those between the ages of 18 and 24 typically live with their parents, which is partly due to still being dependent during college years, the report noted. Only 16 percent of those from the ages of 25 to 31 are in the same position.
Savings an issue for many Americans
While many of these young people may be delaying their foray into the world on their own, there may be some things they can benefit from, especially when straightening out their financial plan. This may need some work for many consumers, no matter what their living situations happen to be.
Only one-quarter of Americans reported they have enough money saved up in order to take them through six months without an income, according to a report from Bankrate.com. However, nearly 30 percent explained they do not have the funds to get them through any period.
Close to 50 percent of those polled only have enough money to get them through three straight months of tough times, the report explained. This was a gain from 2009, when the figure was less than 40 percent.
“We measure five key components of Americans’ financial security each month, and we routinely find that savings is the weakest area,” said Greg McBride, senior financial analyst at Bankrate.com. “People who are less comfortable with their savings now versus a year ago outnumber people who are more comfortable by a margin of nearly two-to-one. That’s especially jarring since people are feeling much more optimistic about other aspects of their finances.”