Most Gen Zers and millennials still rely on parents for financial support

Costa Mesa, Calif., June 27, 2023 — Over half of Gen Zers and millennials (54%) consider themselves at least somewhat financially dependent on their parents, with 23% stating they’re still very dependent on their parents, according to newly released research from Experian. While Gen Z had a higher percentage of financial dependency on their parents (61%), nearly half (47%) of millennials still consider themselves somewhat or very financially dependent on their parents.

According to Experian’s research, two-thirds of young consumers feel ashamed when having to ask their parents for financial help — a sentiment that rings especially true for millennials, with 70% indicating they feel shame when asking for support.

While many are relying on their parents for financial assistance, 27% don’t believe their parents are good financial role models for reasons including:

• My parents didn’t teach me about personal finances (37%).
• My parents avoided talking about money with me (16%).
• My parents have/had bad spending habits (44%).

Credit key to financial independence

Eighty percent of Gen Zers and millennials believe having an established credit history is key to being less financially dependent on their parents and, according to previously released research from Experian, nearly as many are actively trying to improve their credit scores.

“Credit can be a financial tool to help us achieve many of the things we want in life, including financial independence from our parents,” said Christina Roman, consumer education and advocacy manager at Experian. “We have resources available to help consumers lead more financially empowered lives. Our goal is to connect consumers with tools and education to help bring financial power to all.”

Survey says: spending is a struggle for most

In addition to limited experience with credit, Gen Z and millennial spending habits may be another factor causing them to rely on parents for financial support. More than half (57%) say they have a hard time saying no to themselves when making an impulse purchase for something they want but don’t need. This was especially true for millennial males with 62% stating they struggle at least somewhat with impulse purchases.

Similarly, 61% of Gen Zers and millennials said they prefer to spend money on life experiences (like traveling, concerts, etc.) now rather than saving for retirement.

However, many of these young consumers are looking for ways to cut costs, with 57% stating they’re considering cutting down on online entertainment subscriptions to save money.