Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
More Than One-third Of Young Adults Live With Parents
WASHINGTON (8/7/13)--During 2012, roughly 21.4 million or 36% of Millennials ages 18 to 34 lived with their parents. That is the highest percentage in at least four decades, says Pew Research Center's analysis of U.S. Census Bureau data.
 
By comparison, 18.5 million in this age group lived with the folks in 2007.  The percentage has consistently climbed since then, when 32% of Millennials lived at home. In 2009, after the Great Recession, 34% lived with their parents, said the Washington, D.C.-based research center.
 
Of those living with parents, from one third to one half are college students. Younger Millennials between 18 and 24 are more likely to live at home than older ones ages 25-31--56% vs. 16%, respectively. Millennial men were more likely--at 40%--to live with the folks than Millennial women--at 32%--were.
 
The key factors, Pew found, include:
  • Declining employment.  Last year 63% of Millennials had jobs, down from 70% for this age group in 2007. Forty-five percent of unemployed Millennials lived at home  last year, compared with 29% of employed young adults.
  • Rising college enrollment.  In March 2012, about 39% of 18- to 24-year-olds were enrolled in college, an increase from 355 in March 2007. In this age group, those enrolled in college were more likely to live at home, 66%, than those who were not in college, 50%.
  • Declining marriage rates.  Last year, 25% of Millennials were married, down from 30% who were married in 2007. Unmarried Millennials are more likely to live with the folks than married Millennials were, 47% vs. 3%.
What does this trend mean for credit unions?  It changes the way they market and the products and services they provide at any given life stage. Sticking to the old "lifestage" marketing of products may miss the mark.
 
Twenty years ago, a 30-something would be 10 years out of college, have a good job, be married with a couple of kids. He wouldn't have a student loan because tuition was cheaper and he worked his way through college. He would be in the market for a new car loan, a starter mortgage loan or a remodeling loan, a college savings fund for the kids, and some investments to make the most of his earnings--the American Dream.
 
Today's Millennial doesn't reflect those needs. Many Millennials aren't married and don't need mortgages or remodeling loans or college savings plans yet.  They say they need used-car loans that don't take six years to pay off, a good refinance rate on their student loans, and because they don't make much money, they need good savings rates. And they want the convenience of mobile banking.


RSS print
News Now LiveWire
#FreeGasFriday courtesy of @tvfcu, TN #creditunions http://t.co/wDRFYJVlpz
18 hours ago
If you were unable to watch or attend @cuna 's @thehill Hill forum on Wed., you can now watch the archived version: http://t.co/FhUnp7HbU8
19 hours ago
Time is running out. If you haven't taken the #NewsNow readership survey, please click here now: http://t.co/4Gp6C2Wa4o
19 hours ago
African financial inclusion possible with mobile money: @IMFNews study http://t.co/0V5DTQToxY
20 hours ago
Louise Herring's birthday is Saturday. 105 years later, her legacy lives on through her kids http://t.co/oMqGADmo0d http://t.co/T3NmS9NqEY
21 hours ago