Throughout the pandemic young adults have relied heavily on their parents.
LAFAYETTE, La. - The pandemic has most definitely had an impact on us all. For some it's been the strain of mental, physical and emotional health. For other's it's been a the strain of finances, but who else has felt the brunt of financial instability? Young adults, they've been in a financial rut causing many to rely on our their parents for help.
According to a report by savings.com half of parents with a child above the age of 18 provide financial support, college kids are at the top of the list.
I asked "Without your moms support what are some of the things you probably wouldn't be able to have?"
"I would definitely not have a place to live, I would not have gas for my car to get here, I would not have food in my mouth. None of it would be possible without her," said Lavergne.
"They pay for my travel expenses, gas, insurance, my truck payments, all of those type of things," said Vitto.
That financial support means dishing out at least $1,000 a month which goes to things like cell phones, food, or money on a variety of insurance policies.
In addition to costly student loan bills hurdles including an uneven job market and soaring housing prices have not helped. In 2020, the share of those living with their parents temporarily spiked to a historic high. Yet, 62% of adult children living at home don't contribute to household expenses at all simply because they can't afford to.
After quitting her full-time job to focus on school Jade Mitchell lost her health insurance.
"For about 6 months I didn't have health insurance so I struggled getting my prescriptions, going to the doctor was more expensive. Without their help I wouldn't be able to afford either of those things," said Mitchell.
A spokesperson for insurance company TIAA says this is a hard time for young people but it's even more hard on the parents saying quote "When you spend money supporting your adult children, that drains the funds you could have put toward other financial goals, such as paying off debt, saving for long-term health-care costs and retirement planning."
A tip from TIAA for parents, always try and set aside money for your retirement and emergency fund first.
Also, a few tips for all the young adults watching and why they are beneficial :
-Make a budget : This is an important financial step that can help you get your finances in order and track how much money comes in and out of your bank account every month.
-Don't wait to save and invest for your retirement : When you get your first full-time job, your employer may offer a retirement account, such as 401(k), that you can open and deposit a percentage of every paycheck into each pay period.
-Save one-third of your income : If you have cash set aside for emergencies, you have a fallback should something unexpected happen. And, if you have savings set aside for discretionary expenses, you may be able to take risks or try new things for whatever your heart desires.
-Start an emergency fund : This serves as a life jacket keeping you afloat in a time of need without having to rely on credit cards or high-interest loans. It's also good if you have debt, because it can help you avoid borrowing more money.
-Pay off your debt : Owing money to a lender can hurt your credit by increasing your utilization rate (the percentage of credit you use), potentially creating a lower credit score. Lenders may also consider you a high-risk borrower if you have a large amount of debt, which may reduce your chances of qualifying for other financial products. You could also end up paying a lot of money in interest charges the longer you have debt attached to your name.