Buying your first home. Paying your own bills. Finally flying the nest. For many young adults, those traditional milestones are being pushed further away, with 85% of parents saying it’s harder for today’s generation to become financially independent than it was ten years ago.
New research from VoucherCodes.co.uk reveals that parents now expect their children won’t be financially able to leave home until the age of 27 on average, with one in ten believing their adult child won’t move out until they’re in their thirties.
The findings paint a picture of a generation stuck in the family home, as one-third of parents are providing their adult children with somewhere to live either rent-free or at a reduced cost (33%).
As the cost of becoming financially independent rises across the board, more than half (57%) of 18 to 35 year olds receive financial support from their parents, covering everything from food shopping (51%) to mobile phone bills (36%). While more than one in four parents say they’ve helped pay for holidays (28%), others have contributed towards fuel (26%), household bills (26%), and even nights out (13%).
The current generation overwhelmingly faces greater financial barriers than their parents, with nearly eight in ten parents saying they were financially independent before the age of 24 (79%) – that’s at least three years before today’s young adults.
And it’s no surprise given the long list of factors holding young adults back. Parents labelled rising living costs (69%), house prices (48%), soaring rents (45%), low wages (34%), saving for a house deposit (32%), a poor job market (23%), and student debt (21%) as the key reasons behind the great stay-at-home generation.
VoucherCodes.co.uk’s Saving Expert, Clair Hughes, said:
“Today’s young adults are navigating a very different financial landscape to the one their parents experienced. Housing costs, rent, and everyday essentials have all risen much faster than wages, meaning reaching traditional milestones naturally takes longer.
“Living at home for longer isn’t a sign that young people aren’t trying. For many, it’s a practical financial decision that gives them the opportunity to save, pay off debts, or simply keep up with everyday costs.
“While independence won’t happen overnight, building good money habits early, making the most of discounts and cashback, and setting realistic savings goals can all help bring those milestones a little closer.”
Clair’s top three ways to move closer to financial independence:
- Turn living at home into a financial advantage, not a comfort zone:
“Living with your parents can be one of the biggest opportunities to build long-term financial security, but only if you’re intentional with the money you’re saving. If your housing costs are lower, treat the difference as if it doesn’t exist by automatically moving it into savings each payday. That way, you’re building towards a deposit or emergency fund.” - Reduce lifestyle creep and focus on earning potential
“Financial independence is often built by ensuring your earnings grow faster than your spending. Focus on developing new skills, gaining qualifications and creating opportunities for career progression, then direct a portion of any pay rises or additional income towards savings and investments before increasing or altering your day-to-day spending. ‘Lifestyle creep’ happens when higher earnings lead to more spending on everyday purchases, subscriptions and leisure activities. While there’s nothing wrong with treating yourself, being mindful of the ongoing financial impact of these habits can help you build long-term wealth without feeling like you’re constantly cutting back.”
- Don’t let small everyday costs delay your bigger goals:
“The journey to financial independence isn’t usually derailed by one expensive purchase. It’s often the hundreds of small, regular expenses that quietly eat into your savings. Before buying anything (and I mean literally anything!), make checking for discount codes and loyalty rewards part of your routine. Saving a few pounds several times a week can add up to hundreds of pounds over a year, helping you reach milestones like moving out or saving for a deposit far sooner.”
Clair continues: “While many young adults are spending longer at home than previous generations, living with family can provide a valuable opportunity to build stronger financial foundations. With a clear savings plan and smarter everyday spending, staying at home for longer can become a launchpad for financial independence, rather than simply delaying it.”
For more information, visit VoucherCodes.co.uk.
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