Where Can Millennials Achieve Financial Independence?

A new study shows where Millennials are most and least likely to live at home.

Each week, Consolidated Credit searches for financial research that can help you deal with your debt and budget. This week…

The interesting study

24/7 Wall Street conducted a study to evaluate where Millennials were least and most likely to live at home. They recently published the results in Credit Union Times.

The big result

Where can Millennials achieve financial independence faster?The study first confirms that one out of every three Millennial Americans (age 18-34) still lives at home with their parents. Then they reveal the best and worst:

Most likely to live at home: New Jersey

Least likely to live at home: North Dakota

The fascinating details

The report offers a full look at the top 5 least and most likely to live at home. The ranking includes information that may explain why the results are what they are.

States where Millennials are most likely to live at home:

  1. New Jersey: Almost one in two Millennials (46.9%) live at home; marrying age is 29.9, on average, and cost of living is 14.5% higher than the national average.
  2. Connecticut: 41.6% of Millennials live at home; cost of living is 8.8% above the national average and average marrying age is also 29.9.
  3. New York: Over 40% (40.6%) of Millennials live at home, and cost of living is 15.7% higher than the nation; the average Millennial is over 30 (30.3) when they get married.
  4. Maryland: 38.5% of Millennials live at home; cost of living is 10.3% higher than the national average and average marrying age is 29.7
  5. Florida: 38.3% of Millennials live at home, even though cost of living is actually just below the national average (0.9%); average marrying at is almost 30 (29.4).

Where Millennials are least likely to live at home:

  1. North Dakota: Only 14.1% of Millennials live at home. Cost of living is 9.7% lower than the national average and the average marrying age is 26.5.
  2. South Dakota: Almost one in five Millennials (19.9%) live at home, even though cost of living is 13.6% below the national average; average Millennials get married by 26.3.
  3. Wyoming: With cost of living that’s only 4% below the national average, 20.9% of Millennials; the average marrying age is 26.8
  4. Nebraska: 22.7% of Millennials live at home, although cost of living is 10.4% lower than the national average; 27.7 is the average marrying age.
  5. Iowa: Coming in a close 5th, 22.8% of Millennials live at home. Cost of living is 10.7% below the national average and average marrying age is 27.3.

For the most part, cost of living plays a major role in how likely Millennials are to move out. As cost of living increases, more Millennials live at home. When cost of living is low, Millennials are more likely to move out and get married earlier.

What you can do

It’s not really a secret that financial independence is more difficult to achieve these days. There’s a significant gap between entry level wages versus cost of living in a wide range of career fields. In addition, student loan debt now averages over $35,000 for college graduates. That amount of debt makes independence harder to achieve.

However, 24/7 Wall Street warns to be careful of complacency. They explain that there’s a danger that instead of saving money, Millennials end up spending; in fact, the report puts forth it may also end up costing parents more, too.

“The key thing adult children need when they live at home is a transition plan,” explains April Lewis-Parks, Financial Education Director for Consolidated Credit. “As a family, you should establish a plan to slowly transition expenses, such as bills, to the child. At the same time, money should get set aside to make the jump to renting or eventual homeownership.”

Consolidated Credit offers these tips to help Millennials achieve financial independence:

  1. First focus on securing full-time employment that offers a steady salary with room to grow and advance.
  2. Set a budget based on your entry income; at least 10% of each paycheck should go into savings for future housing costs.
  3. If your parents have to cover some of your bills at first, set target dates for you to take them over gradually.
  4. As you work and advance, start checking online for key financial factors for you to move out:
    1. Average rent where you live
    2. Costs to buy a home – average price and monthly payments
    3. Cost of living in your state
  5. If you where there’s extremely high cost of living, don’t take ideas like moving out of state off the table. Also, if you don’t advance as quickly as you’d like, don’t just get comfortable. Be willing to seek a job that will support your life.

Press Inquiries

April Lewis-Parks
Director of Education and Public Relations

AParks@consolidatedcredit.org
1-800-728-3632 x 9344