Why Are There So Many Young People Living in Their Parents Basement?

November 13, 2015

Here is an article that explains that there are more and more young women living with their parents, grandparents, or a relative. This is because of a number of reasons, but I think it highlights the need for our children to get a great financial education starting when they first go to school. I don’t know how many of those girls that are living at home are doing so because the didn’t have the financial tools to plan their life, but I would be willing to bet there are quite a few.

That is why we have dedicated this website to educating both kids and their parents about banking, interest rates, financial planning, and mortgages.

This article is by editor Linda Vergon at get rich slowly

According to a new Pew Research Center analysis, the number of young women living with relatives is rising – to levels not seen since the 1940s. Fully 36.4 percent of young women between the ages of 18 to 34 are not financially capable of striking out on their own these days – even though five times more of them are college-educated today.

The gender gap

It’s no different for young men. In fact, more men than women in this age group (42.8 percent compared to 36.4 percent) live with family members today.

But a recent Payscale.com survey on the gender pay gap indicates that men will earn far more than women by the time they reach their 50s, in part because of the types of jobs men and women typically take.

The most common job held by women was office manager and administrative support, which is likely to pay $45,100 annually according to the report.

The most common job held by men was computer software engineers, paying on the order of $88,700. But another factor to consider is that the Payscale study showed that men’s pay levels off at $75,000 per year at 50 to 55 years old; whereas, women’s pay levels off at $49,000 at 34 to 40 years old.

What is the answer?

Ironically, the Pew results come at a time of reported lower unemployment, underscoring how difficult it is to get ahead. We’ve been developing articles designed to help young people avoid student loan debt in the first place and to help them repay it faster. So what else can they do to gain the financial wherewithal to start their lives? Add your thoughts in the comments. Here are some suggestions to get the ball rolling…

Get better at budgeting
Get better at negotiating
Get better at investing

What do you say? How can young people amass the funds necessary to strike out on their own and thrive today?