A new study has found that half of college graduates aged 23-26 still rely on their parents for financial assistance. The study says that though much of this is due to unemployment figures for recent college grads, there also are a significant amount of employed college grads who are also receiving financial assistance from their families. This is due to the fact that many employed college graduates are still unable to fully cover their expenses. Also, changing financial outlooks from recent college graduates are contributing to the problem. According to CNBC:
There’s also been some shift in grads’ financial attitudes: 91 percent said financial independence is an important goal, down from 95 percent who thought so in 2011. Meanwhile, the percentage of students who said they think they’ll never be self-sufficient more than tripled, from 0.6 to 2 percent. Grads also said that annual salary was less important when job-hunting, compared to two years ago.
This information has an impact on both graduates and their families. Consumers in both groups can be impacted by the fact that college graduates need to borrow money from their families. As graduates are unable to cover their expenses, the amount of money they are able to spend on consumer goods is lessened. Also, the families of these graduates are subject to less disposable income than they would have if their college graduate were financially independent.
In order to lessen the impact of this trend, experts suggest that both families and graduates sit down and have a serious discussion about financial responsibility and plan out a cohesive financial strategy.
Read More- “Half of College Grads Still Get Family Support” (Kelli B. Grant, CNBC)