Parents who have spent the last few years shelling out money for their kids’ schooling can finally sigh relief now that they’re done with college.
According to new research, many parents are still financially supporting their adult children even after they graduate from college.
“Life After College: Drivers for Young Adult Success” followed 2,000 students from 2007 to 2013; these individuals were freshmen when the study started and graduated within two years as expected.
Of the participants studied, only a third reported being financially secure at the end.
50.6% of respondents said they rely on family support to meet their financial needs, while 17.4% reported borrowing money from other sources. Even among those who are employed, 48.9% still receive financial assistance from relatives.
Most participants, 98%, hoped to achieve financial independence within ten years. A tiny number said they were unlikely ever to be independent financially. This percentage had increased from 0.6% two years earlier, making the researchers believe that college graduates are growing more pessimistic about their ability to support themselves over time.
The study authors found that these results show a change in what it means to be an “adult.” They suggest that feeling like a grown-up is possible even when someone is financially dependent on their parents.
Some parents of recent college graduates are now having to support their children financially while also transitioning into retirement themselves, which can have negative implications.
If you want to move out of your parent’s house or give your child financial independence, look no further. We have all the information and resources you need to smooth the transition.
This article was originally published on LearnVest.