Millennials, Gen Zs prioritize buying a car over paying rent
A recent poll of younger Americans found they budget very differently than older generations.
The Harris Poll conducted on behalf of TD Ameritrade surveyed more than 3,000 people ages 15 and older and tried to pin down what they considered adulthood.
Both Gen Zs and young millennials considered paying for their own streaming services to be one of the first markers of adulthood. This compared to more traditional milestones such as landing a full-time job, paying their own bills or even moving out of their parents' home.
Young millennials, who were designated as ages 22 to 28 in this poll, admitted to slacking when it comes to saving for their retirement, with only 28 percent of them saying they've started saving.
Nearly half of Gen Zs, which are considered to be currently 15 to 21 years old, talked about experiencing a "quarter-life crisis." More than half of young millennials experienced one as well.
Experiencing a quarter-life crisis?
Nearly one in five young millennials said they expect to be financially reliant on their parents well into their 30s. This juxtaposed with 91 percent of parents expecting their children to be financially independent by the age of 25.
Lauren Anastasio, SoFi Financial Adviser, has some suggestions for parents to guide their children away from relying on them financially.
When will you be financially independent?
"There’s no perfect formula or calculation, but families should take steps to establish what their values are and allow that to guide them in how long they will provide financial gifts and support," Anastasio said.
Young millennials did admit it's embarrassing to be financially supported by their parents in their 30s.
If you're going to accept money from your parents post-college, set a timeline.
"Consider a realistic amount that you'll need after factoring in salary, rent, etc.," Anastasio said. "Set a goal for a promotion or when you’ll no longer need their support. This will keep you accountable and motivated at work."
Despite this, a majority of young Americans admitted they'd buy a car before other important financial moves, such as paying rent, investing, paying for insurance or saving for retirement.
How much are you saving?
That may be because about 20 percent of those surveyed said they still can't afford to save, with those who are saving saying they are putting away less than $200 a month. Almost a third of Gen Zs said they aren't saving a dime, while nearly one-tenth of young millennials said they aren't saving anything either.
CLICK TO READ MORE ON FOX BUSINESS
Sticking to a budget may be to blame, as one in three Gen Zs said they are too young to follow a budget and even if they did have one, they wouldn't know how to follow one.