Experian Research Finds Having Established Credit History Helps Young Consumers Feel Financially Independent
Recent Experian research found that 54 percent of millennials and Gen Zers consider themselves at least somewhat financially reliant on their parents, with 23 percent being very dependent on their parents. 80 percent said they believe that having established credit histories is crucial to being more financially independent, and the same share is actively trying to improve their credit scores.
“Credit can be a financial tool to help us achieve many of the things we want in life, including financial independence from our parents,” said Christina Roman, Experian’s consumer education and advocacy manager. “We have resources available to help consumers lead more financially empowered lives. Our goal is to connect consumers with tools and education to help bring financial power to all.”
While many young consumers rely on their parents for financial assistance, 27 percent said they don’t think their parents are good financial examples. 37 percent of that share said their parents didn’t teach them about personal finances, 16 percent said their parents didn’t talk with them about money, and 44 percent said their parents have had bad spending habits.
Spending habits may be a big factor causing millennial and Gen Z consumers to be financially dependent on their parents. 57 percent said they struggle telling themselves no when making an impulse purchase, and 61 percent said they prefer to spend their money on life experiences like concerts and traveling, rather than saving for retirement.
Alternatively, many millennials and Gen Zers said they are actively seeking ways to save more money. 57 percent said they’re considering cutting back on online entertainment subscriptions to cut costs.