Written By Sophie Okolo
According to a new study from TD Ameritrade, more than 22 percent of Americans, some of whom are Millennials, are financially providing for an aging parent, adult child or at times, both.
The study is particularly interesting since Gen Y is known to have a sense of entitlement. While this is true to an extent, reports have shown that Millennials who have jobs still live at home to care for their parents. Considering that “this generation has a strong sense of community, both local and global, it is not surprising that this age group feels responsible for their aging parents.”
In a report by AARP and the National Alliance for Caregiving, nearly 25 percent of America’s caregivers are Millennials. That is almost a quarter of caregivers who are individuals age 18-to-34. While studies are yet to confirm the link between living at home and providing financial support, it is encouraging to see this age group caring for their loved ones.
Gen Y is doing their fair share of work and not taking advantage of their parent’s generosity, contrary to popular belief. It also seems that their parents are enjoying their company. Perhaps living at home creates cooperation and kinship among families, two attributes that are seemingly lost in today’s culture of independence and autonomy.
While the study highlights Millennial responsibility, providing care or financial support to an aging parent is costly and can put financial strain on this generation. “It’s a situation where some people are going to have to work longer than they had expected or wanted to, or they are going to have to do some penny pinching… and maybe reallocate,” according to Matthew Sadowsky, director of retirement at TD Ameritrade. Sadowsky also offers other suggestions such as setting aside some money in a separate account. Ultimately, Gen Y will need to get creative in planning their financial future and investing wisely.