American’s financial independence day takes decades, NSCU study reveals
As millions of students begin the new school year, parents across America are edging closer to the day when their offspring stand on their own two feet.
But thoughts of shuttering the bank of mom and dad should be put on hold according to a study from the North Carolina State University which finds that a significant cohort of young adults will need to keep that account open for decades.
The research found that only a third of American adults did not rely on their parents for material support of some form from their late teens through to their early 40s.
“This work really challenges the notion that complete independence is a necessary marker of adulthood,” says Anna Manzoni, co-author of the study and an associate professor of sociology at North Carolina State University. “Instead, we see a pattern of interdependency that changes over time and appears to be influenced by race and educational background.”
The study looked at data from the National Longitudinal Study of Adolescent to Adult Health which covered more than 14,600 adults aged 18-43 and accounted for social and demographic factors, to determine the extent to which parents and children exchange financial and residential support.
“We found that there is no single pathway that most people take regarding independence from their parents,” added Manzoni. “Instead, people tend to fall into one of six different categories.”
The six categories to financial independence from parents are:
“Complete Independence is least likely among Black families and most likely among white families, while Extended Interdependence is least likely among White families and most likely among Hispanic families,” explained Manzoni.
Education plays a key role in financial independence, with
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